What is an order form?

An order form is a document written by the supplier summarising the products and services ordered by the buyer. The latter must then check and sign the order form to trigger delivery and possibly issue an invoice for the BtoB. The purpose of the purchase order is to confirm the purchase of the goods and services ordered and to detail the terms of the exchange. The order form can be made by mail, fax or e-mail.

What information are included on a purchase order?

The order form must contain mandatory information such as:

• the note “Order form” on the document
• date and order number
• delivery date and conditions
• the complete identity of the supplier (address of the head office, company name of the supplier)
• the complete identity of the customer (SIRET number, company name, etc.) and the billing address
• the quantity and details of the goods or services ordered
• the price excluding taxes and all taxes included
• the VAT amount
• payment terms
• the conditions and withdrawal periods
• information related to the conditions of sale (payment method, delivery conditions).

Why using and order form?

Companies use the order form first of all to have legal protection. Indeed, the purchase order represents a legal contract between the seller and the buyer, it allows the promise of sale to be validated. In the event of disagreement over the quantity of products, for example, the order form serves as a reference.

Secondly, the purchase order makes it easier to track orders. It allows, thanks to the purchase order number, to better visualise and manage the goods and services that have been ordered.

Additionally, the order form helps to avoid audit issues. As a result, during a tax audit, the procedures are simpler and faster.

Finally, the purchase order facilitates management for suppliers and makes maneuvers faster, the information being all in the same place the supplier sends orders more quickly.

When does the company have to supply an order form?

For greater efficiency, companies will set a minimum ceiling for issuing purchase orders. In addition, some payments do not require purchase orders such as:

• regular and recurring purchases related to the day-to-day activities of the business, including heating, electricity and gas for example.
• reimbursements for internal expenses (internal equipment, supplies, entertainment). They are generally called “expense reimbursement”
• purchases where the total future cost is unknown, an invoice will be sufficient.

Difference between order form and invoice?

The main difference between a purchase order and an invoice is that the purchase order allows you to specify exactly the items ordered by the buyer as well as the terms related to delivery and ordering. This document acts as a contract between the buyer and the seller.

While the invoice is a legal and accounting document which certifies the purchase or sale of goods or services. The purchase order number will generally appear on the invoice to ensure that the information in the two documents are identical.