What this template includes
- Buyer and supplier
- Names, addresses, GSTINs and contact persons on both sides.
- PO details
- PO number, date, revision number and quotation or rate-contract reference.
- Material lines
- Item code, description, grade or standard, size and tolerance, drawing number and revision, HSN, quantity, unit and rate.
- Delivery schedule
- Quantities due by date, for orders delivered in lots.
- Quality terms
- Inspection point, test certificate requirement, rejection and replacement terms.
- Commercial terms
- Freight, packing, payment terms, price basis and GST.
- Approval
- Prepared, checked and approved signatures, and supplier acceptance.
Example use case (illustrative)
A Ludhiana auto-parts maker orders 12 tonnes of bright steel bars from a mill. The PO specifies the steel grade, diameter with tolerance and length, asks for a mill test certificate with every lot, and schedules 4 tonnes in each of the next three months.
It states that material failing incoming inspection will be returned at the supplier’s cost, and that each lot’s invoice must quote the PO number and lot number.
How to fill in the Manufacturing purchase order
- Reference the agreed rate. Enter the PO number and the quotation or rate contract the prices come from.
- Specify each material precisely. Give the grade or standard, dimensions, tolerances and drawing number with revision.
- Set the delivery schedule. Break the total quantity into lots with dates if you do not want everything at once.
- Write the quality terms. State where inspection happens, which certificates you need and what happens to rejected material.
- Approve and issue. Get the PO checked and approved, then send the PDF and ask the supplier to confirm acceptance.
Specifications that prevent rejections
Most disputes on raw material orders come from vague descriptions. “MS plate 10 mm” leaves room for argument; a grade or standard, a thickness tolerance, a size and a finish do not. If a drawing governs the part, quote the drawing number and revision so the supplier cannot work from an old version.
Inspection and test certificates
Say where inspection will happen: at the supplier’s works before dispatch, or at your factory on receipt. If you need a mill test certificate or another test report with each lot, say so on the PO; it is much harder to ask afterwards.
Also state the rejection terms: whether rejected material is returned or replaced, who pays freight both ways, and how quickly replacements must arrive.
Job work and material sent out
If you send your own material to a job worker for processing instead of buying finished material, that outward movement is not a purchase and follows separate GST and e-way bill rules for job work. A purchase order for the job work charges can still sit alongside.
Read more: E-way bill rules for job work