1. Purchasing and Use of Purchase Order Forms
Advanced Marketing

2. What is a Purchase Order?
Written sales contract between buyer and purchaser
Details exact merchandise or service rendered by a single vendor

3. Components of Purchase Order
PO number
Shipping date
Billing address
Terms of Payment
List of services or products (with reference numbers or specifications)
Quantities
Prices

4. Terms of payment- when the bill is due!
What are “Terms”?
Terms of payment- when the bill is due!
Prepay – pay before the order is shipped- often cash
Net 15 (must pay bill in full within 15 days)
Net 30 (must pay bill in full within 30 days)
Net 45 (must pay bill in full within 45 days)
2/10 Net 30 (must pay bill in full within 30 days, BUT if paid within 10 days, the buyer receives a 2% discount)

5. Why Use Purchase Order Forms
Allow buyers to clearly communicate intentions to sellers
PO is a legal document- can be used in event buyer doesn’t pay for product or service
PO used in accounting process of companies- match up PO with packing slips before invoices are paid. (check for accuracy of product shipped and received)

6. Class Assignment Complete this assignment with a partner.
Visit the following website and review the purchase order form. Use this form to prepare an order for the Falcons’ Nest.
Working with a budget of $3,000, place an order with MV Sport for the Falcons’ Nest.
MV Sport provides net 30 day terms