How to make a purchase order

A purchase order (PO) tells a supplier exactly what to send, at what rate and by when. When the bill comes, you check it against the PO.

Step by step

Your business. You are the buyer; your details print at the top.
Purchase order details. Number, date, Delivery by and Vendor's quotation number.
Vendor (order to). Type the Vendor name or pick a saved supplier.
Items. What you need, quantity, agreed rate and GST.
Terms and conditions. Delivery place, payment terms, quality conditions.
Save and share. When goods arrive, set Status to Goods received and enter the supplier's bill in the App (Purchase bill).

Worked example

PO/26-27/015 to Punjab Steel Mart: 500 door hinges at ₹30 + 18% GST = ₹17,700, delivery by 10 October, "payment in 30 days". Their bill PSM/1189 arrives for the same amount; enter it in the App and mark the PO Goods received.

Common mistakes and how to fix them

Entering a PO as a purchase. A PO is only an order; only the supplier's bill is a purchase.
Bill rate higher than the PO. Ask the supplier for a corrected bill, or for a credit note for the difference.

Try it now: it is free and needs no login.Open the purchase order maker

All help on Purchase Order · Help for the Nivesh Sahayak App

How to make a purchase order

Step by step

Worked example

Common mistakes and how to fix them

Related help

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