PURCHASE ORDER LE

TTER

CONTI’DAfter getting brochure or quotation from the supplier, you

might decide to order the products. Therefore, your order letter should include the information in details and accurately in order to avoid wrong delivery of goods.

DETAIL INFORMATION THAT YOU SHOULD INCLUDE

• With reference to the sources ( magazine, trade Expo or Fair, colleagues, etc) if any.

• Quantity of items, amounts, prices, product number, catalogs (if any).

• Delivery details ( means of delivery and time of delivery)• Terms of payment. (quarterly account, Letter of Credit(L/C),

Bank transfer, by check or by cash, etc.)

OPENING PARAGRAPHThe following phrases and sentences are used in order letters:Opening:1. Thank you for reply of 3 January regarding the CD we wrote

to you. Enclosed you will find our official order (No.A238) for….

2. Your letter of 2 January convinced me to place a trial order for new type of ‘Compressor” you wrote about.

3. Please find enclosed our order No.BH56 for 25 units of Samsung Galaxy Tabs.

ACCEPT THE TERMSDiscount:1. We would like to thank you for the 30% trade discount and

10% quantity discount you allowed us.2. Finally, we would like to say that 25% trade discount is quite

satisfactory.3. Although the rather low cash discount of 5% disappointed

us, we will place an order for 200 LG TV sets in various size.

REQUESTED ACTIONDelivery:1. Please send the goods by intercity express as we need them

before ’Idul Fitri’.2. We advise delivery by road to avoid constant handling of this

fragile consignment.3.Delivery before fasting month “Ramadhan” is a firm

condition of this order, and we reserve the right to decline goods delivered over time.

CONTI’DPackaging:1. Each piece of crockery is to be individually wrapped in thick

paper, packed in straw, and shipped in wooden crates marked and numbered 1 to 5.

The mountain bikes should be packed in plastic and put them in a wooden box individually, then numbered 1 to 200.

CONTI’DPayment:1. We would like to confirm that payment is to be made by

irrevocable letter of credit which we have already applied to the bank.

2. Once we have received your advice of dispatch, we will send a banker’s draft to…

3. As we agreed, the payments would be made against quarterly account statements.

4. As agreed, you will draw on us at 30 days, document against acceptance, the document being sent to our bank, Mandiri Bank Surabaya Branch.

CLOSING PARAGRAPHClosing:1. We hope that this will be the first of many orders we will be

placing with you.2. We will submit further orders, if this one is satisfactory for

us.3. Finally, I look forward to receiving your acknowledgement.4. Finally, I look forward to receiving your advice of dispatch.

SAMPLE ROUTINE PO

PO WITH ORDER FORM

ACKNOWLEDGING ORDER LETTER

DECLINE PO1. Out of stock (give alternative)2. Customers with bad reputation:• We would only be prepared to supply on a cash basis.• As there are too many orders we have received before, it seems

unlikely that we could deliver within next semester.• I am sorry to say that we must turn down your order as we have full

order books at present and cannot give a definite date for delivery.

TERMS ARE NOT APPROPRIATE, INCLUDING DISCOUNT, AMOUNT OF QUANTITY, PAYMENT, AND DELIVERY.

Discount:• It would be very uneconomical for us to offer our product at 30%

trade discount as we work on a low profit margin.• The usual cash discount is 5% which is lower than the figure you

mentioned.• The discount you ask, for us is far more than we offer any of our

customers.

CONT’DThe amount of quantity is too big.• We are only a small company and possibly cannot handle an order

for more than20,000 units.• Our factory does not have facilities to produce 40,000 units.The amount of quantity is too small.• We only supply orders for garments by gross. Therefore, we suggest

you try a boutique rather than manufacturer.• Our factory only sells material by 30 meter roll which cannot be cut

up.• The shirts we manufacture are only sold by dozens. We never sell

individual garments.

CONT’DTerms of Payment:• We only accept payment by irrevocable L/C.• We never offer quarterly terms on initial orders, even

to customers who can provide security. However, we might consider this sort of credit once we have had three orders.

• Our company relies on quick sales, and very low profit, and thus we cannot offer long term credit facilities.

CONT’DTerms of delivery:1. Delivery could not be possible within

the time given in your letter.2. Two months must be allowed for

delivery, as we ourselves have to get raw materials and rely on our suppliers.

DECLINE ORDER (OUT OF STOCK)

TERMS ARE NOT APPROPRIATE

WRITE A PURCHASE ORDER BY COMPLETING THE FOLLOWING PHRASES.Dear Sirs,

Thank/pricelist and brochure/ sent/on/21 June. We/satisfied/ your good/ suitable.

We/place/ order/1,000 tins of tomato ketchup. We/enclosed/order (no.2345)

Our bank/issue/a Letter of Credit/in your favor/your invoice f.o.b Surabaya.

We look forward/receive/your delivery.

Yours faithfully