As a business owner, creating a purchase order and even purchase order forms can be daunting, especially if you are new to the procurement process. However, the process can become much easier and more streamlined with the right purchase order template. This article will provide you with everything you need to know about creating a purchase order using a free Google sheet template.

The purchase order template we will discuss in this article is a ready-to-use template for creating and tracking purchase orders.

The template is fully customizable to meet your specific needs and standard purchases.

Click on the link below to download Google Sheet Purchase Order Template

Get Google Sheet Purchase Order Template

Before we dive into the details of the purchase form template, let’s start with a brief introduction to purchase orders.

 

What Is A Purchase Order?

A purchase order is a document that a buyer sends to a seller to request goods or services. It is a legally binding agreement between the buyer and seller, outlining the purchase details such as the product or service, quantity, price, and delivery date.

A purchase order is an important part of the procurement process and your inventory management as it helps to ensure that the buyer and seller are on the same page and that the transaction runs smoothly. Without a purchase order, there is a higher risk of miscommunication, delayed deliveries, and disputes over pricing or quantities.

Why Use A Purchase Order Template?

Creating a purchase order from scratch for typically simple purchases can be time-consuming and complicated, especially if you are unfamiliar with the process. Using a purchase order template can save time and reduce the risk of errors or omissions in the order.

A purchase order template provides a framework for creating a purchase order that includes all necessary information for your purchase order documents. It ensures you do not forget any essential details and makes organizing and tracking your purchases easier.

Additionally, a template can help maintain consistency across your purchase orders and other contract purchases. It ensures that all orders follow the same format, making it easier for vendors to understand and process them using a formal purchase control system.

How To Use The Free Purchase Order Template In Google Sheets

Step 1: Download the purchase order form template

To start, copy the purchase order spreadsheet to your Google Drive as google forms.

To do that, click on File and Make a copy+

Step 2: Update the logo

The second step in customizing the purchase order template is to update the logo. This is an optional step, but it can help to give your purchase orders a more professional look.

To update the logo, open the template and click on the highlighted cell where the text “Your logo goes here” is located.

Delete the text in the cell.

Then, click the “Insert” tab in the main menu and select “Image” from the dropdown menu. Select the “Insert Image over Cells”.

Upload your logo and resize it as needed to fit the cell.

Step 3: Update the purchase order header details

The next step is to update the purchase order header with the product details. This includes the date of the purchase order, the purchase order number, and any other relevant information.

No need to use any special software to do this. To update the header details, click on the relevant cell and enter the information. For example, to update the purchase order date, click on the cell where the date is located and enter the date in the correct format.

Step 4: Update the vendor details, billing details, and delivery information

The next step is to update the vendor, billing, price per unit, and delivery details. This includes the vendor’s name and address, the vendor’s contact details, and the shipping information. Do not forget to include the delivery instructions as well.

Moving on, let’s delve into each section in more detail.

Vendor Information

Providing the vendor’s details is a simple process. You will need to fill in the following information:

1. Vendor’s name
2. Vendor’s address. If the vendor has multiple locations, specify the address from where they will ship the product or provide the service.
3. Name of the supplier contact.
4. Contact details such as email and phone number of the vendor. These details will be printed on the purchase order, so you don’t have to waste time looking for the vendor’s contact information when needed.
5. Method Of Payment

Ship To Information

The “Ship To” section contains the recipient’s contact information and address details. Your company name and address should be specified here. Vendors will use this information to ship the product.

To ensure hassle-free delivery, it’s best to include additional details such as building number, suite, or floor number.

You can also include a contact person’s name and contact information for the courier or vendor in case they need assistance finding the location.

Bill To Information

Although not mandatory, you can use the “Bill To” section to provide specific instructions on how to send the bill for the purchase order.

For instance, if your company doesn’t have a standardized process for receiving invoices, you can use this section to specify the instructions and drive compliance with your standard process.

You can include a mailing address for the bills, but we recommend providing instructions instead of an address.

For example, you can specify that all bills should be sent to ap@yourcompany.com, and paper bills will not be accepted for payment.

Billing email and contact information can also be included for clarity.

Step 5: Update other details

To prevent any other communication issues, make sure you include all the necessary detail to serve as an official record. Moving on, the following step involves entering any additional information that needs to be included in the purchase order.

This may comprise of the agreed payment terms with the vendor, delivery contact if it differs from the order contact, any special freight terms applicable to the purchase, and any special notes or comments for the supplier.

Step 6: Update line item details

The next step is to update the line item details for the purchase orders in the simple spreadsheet template that we shared, which pertains to what is being purchased from the vendor.

The header fields are customizable and can be changed to match your exact headings for any digital purchase or electronic purchase.

The various fields in the line item details include the following:

1. Line number: It is a sequential number.
2. Item number: if you maintain an internal item master
3. Supplier item number, which many suppliers require to process the purchase order
4. Product/service description: description of the product or service that you want to purchase.
5. Quantity: make it one in case of a service purchase.
6. Unit of measure (UOM) for the purchase (e.g., each or a pack)
7. Unit price (the agreed price to acquire the product or service)
8. Any other charges agreed upon with the vendor (such as expedited shipping)
9. Total for that line item (which is calculated automatically based on the line amount and other charges), and the expected delivery date (which some vendors have fixed lead times and may not accept an order with expedited delivery requirements).

Step 7: Shipping and taxes

This section involves any additional shipping and taxes that need to be added to the purchase order.

The template provided above automatically calculates the subtotal based on the line total. The taxes and any shipping charges are calculated and added to the spreadsheet. The template then calculates the order total based on the above three factors.

Step 8: Authorized signatory

While not mandatory, many companies prefer to have an authorized signatory on the purchase order to ensure that it comes from the authorized buyer and not just anyone from the company.

The template above provides an option to include an authorized signatory.

Simply replace the image with the signatures of the authorized signatory by clicking on the image and hitting delete on the keyboard.

Then insert the image using the Insert -> Image -> Insert Image over cells option on the Google Sheet.

Step 9: Create PDF document for the purchase order

The last stage of the purchase order process is to send it to the supplier after completing all the necessary details. Luckily, we have made the entire process easier for you. All that’s left for you to do now is to print the purchase order and convert it into a PDF format for easy sending.

1. Click on File and then Print.
2. You will see something like this:

Then click on “Next” to continue.

3. You will then see the following screen:

Click on More setting, then click on “Open PDF in preview”. This will open a dialog box and you can save the PDF of the document.

And that’s it, you now have a purchase order. You can send this to the vendor or in case you need additional approvals, first get the approval and then send it to the the vendor.

Step 10: Update the purchase order tracker

Optionally, you can keep a track of your purchase orders to ensure timely delivery and payment. To update the purchase order tracker, navigate to the “Purchase Order Tracker” tab and fill in the following information:

Refer to the screenshot below for the fields that need to be filled:

1. Purchase Order Number: This is the unique identifier for the purchase order you just created.
2. Purchase Order Date: This is the date that is printed on the purchase order.
3. Vendor Name: Enter the name of the vendor for whom the purchase order is issued.
4. Purchase Order Amount: This is the total amount for the purchase order.
5. Issue Date: This is the date when the purchase order was sent to the vendor. Ideally, it should be the same as the Purchase Order Date. However, in case of a delay in sending the purchase order, this date may differ.
6. Expected Delivery Date: This is the date when you expect to receive the delivery from the vendor. You can use this information to follow up with the vendor if the delivery is delayed.
7. Status: This field denotes the current status of the purchase order. It can be “Sent to Supplier”, “Delivered”, or “Closed”. This helps you keep track of the next steps for the purchase order.

Benefits:

Using a purchase order template can be the first step toward maintaining a detailed record of your company’s purchasing history.

The following are some of the key advantages of using this purchase order template:

1. It’s completely free and requires no investment, as most companies already have access to Google Sheets.
2. It’s easy to start, with no learning curve to worry about.
3. You can keep track of all your purchase orders in one place, allowing you to easily monitor how much you owe to your trading partners.

Drawbacks:

While using a purchase order tracker in Google sheets has some obvious benefits, it also has a few disadvantages:

1. Manual effort: Filling out the relevant information takes time, and generating purchase orders becomes more time-consuming as the volume increases.
2. Accuracy of information: Whenever a new team member joins, they need to be trained on how to use the tracker, which can lead to inaccuracies and delays in obtaining necessary materials or services.
3. Lack of scalability: This process isn’t scalable enough to support growing companies, particularly if there isn’t a purchasing team in place to manually generate purchase orders.

The Bottomline:

A purchase order template can be a great way to generate orders easily. If you’re not currently using any purchase orders, this is the simplest way to get started.

However, when you start generating more than 20 purchase orders per month, you’ll need a more robust system to create and manage purchase orders. More importantly, you must ensure that costs are controlled and that only approved purchases are sent to suppliers.

This is where ProcureDesk can help you. Our platform provides a central place to keep track of all your purchase order commitments and includes a cost-control process to ensure that only approved purchases are issued to suppliers.

If you want to see how ProcureDesk can help you, click the link below to schedule a free demo with one of our product specialists.