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The Purpose of Purchase Agreement FormsPurchase agreement forms are used to document the intent to purchase a product or service. When a business person places an order for office supplies, he or she is entering into a verbal purchase agreement with the office supply vendor. If the person writes or types the order into a purchase order form, he or she is entering into a written purchase agreement.Purchase agreement forms are usually labeled with a unique purchase order number. They contain specifics about the items being ordered, such as quantity, item number, model number, shipping address, payment terms, and more. Some vendors require written purchase agreements prior to shipping merchandise that has not been prepaid. Others require them only if their customers specify that orders placed without approved purchase agreement forms are not considered to be valid orders from their organizations. Purchase agreement forms are excellent tools for keeping track of merchandise and services ordered, verifying order accuracy, avoiding duplicate orders, keeping up with delivery and verifying legitimacy of invoices received. Purchase agreements are beneficial (large and small) business forms. No matter what size your organization is, keeping a handle on the purchasing process is an important part of running an efficient business.
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