Sales Order Checklist with modifiable download

There are some steps that every sales order should have in place, especially if the order comes via email or a purchasing system. The checklist has been left in Word so that you can alter the form to fit your business policies.

  1. Know your customer. Validate your customer and the buyer, if they are not the same entity. Are they who they say they are? Are they operating in a country that your government has sanctions against? Are you selling to an agent or buying house? Do they have the end-users authorization to buy on their behalf? Do they have good credit or charges against them for breaking any laws? Always know your customer.

  2. Seller's name. Ensure that the correct seller's name is on the PO. The correct legal name. If you have several entities, ensure that the affiliate or sister company hasn't been written in by mistake.

  3. Agents. If an agent is buying goods or services for someone else. They need to prove they have the right to do so. Good trade compliance and for audit purposes, ensure that the PO states the company buying the goods is "Agent for [customer]" who the agent is buying for. Go to point 1, validate your customer and the agent.

  4. Addresses. Except for the middle east, none of the addresses should have a Post Office Box stated as their address. This is part of the validation practice. Is it a true company ordering your products or is it a scam.

  5. Buyer's contact details. This should include their name and phone number, if only a mobile/cell phone is provided, ask for the landline phone number. This will be required to be added to the shipping documents.

  6. Delivery Terms. I personally prefer Incoterms. Need more information, join this group. Incoterms group on Linkedin.

  7. Delivery address. Where are you delivering to? It really isn't possible to deliver a dump truck wheel to a PO box and of course, you would prefer someone to be there to receive the goods. (the Middle East is the exception.)

  8. End Destination. This is there to remind those sellers whose products require an export license. It is always good to know but could cause some severe penalities by your government, the US or UK if someone states, "I don't know".

  9. Language. What language does your business work in? English is widely accepted but isn't necessary if the PO is in Spanish and your business language is the same.

  10. Sales Terms. Always attach your companies sales terms to your quotation or order confirmation. Unless you have agreed special conditions to other accepted terms or when using a framework agreement.

  11. Sales Terms. Are changes required to the sales terms and conditions either yours or the buyers, get help from your contracts representative.

  12. Prices. Do the prices in the PO reflect what was agreed, stated in your quotation or offer. No, send it back and have the buyer revise the PO.

  13. Payments. Payment terms should be aligned with your business requirements. Check that the payment schedule is in line with Can you afford to give your buyer 30 days from receipt of invoice? Does the buyer want to change the payment terms, check with your Finance Department.

  14. Invoice Address. Is the buyers invoice address on the PO? If not, return the PO for it to be corrected. Does the PO address have a different address or in a different country? Ask the buyer why, validate your customer.

  15. Law. What law is the PO governed under? Is it in line with your company's policies? If not go back to the buyer and have them revise the PO.

  16. Value Added Tax (VAT). Ensure that the buyer's VAT number is stated on the PO. If the buyer is not VAT registered, the company's organization number is ok. Validate your buyer, for larger companies or companies who have been in business for over a year, should be VAT registered.

  17. Deliverables Ensure that the deliverables are specified on the PO and not just referred to as a product number or acronym. XX2Y Ass. H. does not describe what is being purchased or sold. Ask for the long description line to be added if it hasn't been.

  18. Signatures. If you start work prior to agreeing the PO, price, terms, delivery, warranty, etc you may lose the right to correct any mistakes. Check your work and that of the Buyers to ensure you are both saying the same thing. BEFORE SIGNING or sending an order confirmation.

Happy sales PO reviewing

Order Checklist
.docx
DOCX • 20KB

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