I am a business owner. How do I accept Purchase Orders?

Question

I just want to know what is the process of accepting purchase orders. What paper works are needed, etc. Most of my clients are schools.

Would I have a problem if the business is not registered?

Answer 1

Black,

Be it public or private schools, I would investigate who they've done business with before, and how promptly they pay. The terms should be on the P.O. itself, but I would be weary when dealing with municipalities...sometimes they are slow in paying up.

Usually, you'll get the P.O. and it will have all the things they want listed...go through the list and see that you have everything in stock...if not, call the purchasing agent listed on the P.O. and ask if the unstocked items can be backordered, and what the payment terms are then...if you have to wait a week to get something in to fill the order, you may have to wait to get paid for the items you already released on the order.

You'll probably have to submit a copy of the P.O. with an invoice issued by you with the signature of an authorized representative of the school accepting the order.