This is a Clilstore unit. You can link all words to dictionaries.

Three purchase main documents. Purchase order - Delivery note - Invoice. A bit beyond the paperwork.


This lesson has the following sections:

1.- Introduction.

2.- Objectives.

3.- A presentation (Linking label 1 for KeyNote version / Linking label 2 for PPT version) throughout which most of contents will be displayed, either:

a) by texting on the slides, or

b) by showing some diagrams, or

c) by means of a hyperlink sending to some web pages written explanations, or even

d) by means of a hyperlink sending to some web pages explanation videos.

4.- Written explanation. 

Some texts that are shown in the presentations slides will be extracted and copied here in this text box, so as to make it easier to read most of the information without opening the presentation. However, for the learning purpose it is upmost advisable to quietly follow the paced sequence of images and texts displayed in the presentation because, given the specialization of the subject, a slow, gradual unravelling becomes prudent. The copied text in the present box may well serve as a consultation tank or a quick review resource.

5.- Reasoning tasks. Follow the link given below and do the 5 practical tasks described in the document (Linking label 3).

6.- Room for practicing with some commercial transactions. A link will be made available to see one or several examples -Cases- of commercial transactions to be translated or reflected into a Purchase order - a Delivery note - an Invoice sequenced series. (Linking label 5). (Linking label 4)

7.- Some extra documentation will be offerred by means of extra linking labels (see Linking label 5 for four differente extra documents).

8.- Test.


1.- Introduction.

Along this project the student will learn how to fully understand and correctly produce three important documents onto which lies some utmost important processes in a business: the purchase and the selling. As he goes deeper in the content and purpose of the Purchase Order, the Delivery note and the Invoice, the student will find out, on the one hand, the strong link existing between them and, on the other hand, he should also discover how these documents, back-bone of an economic activity, would reflect the ethic commitment and social liability of a company, the crucial Balance between corporation´s profits and the common good. The student will finally learn how to manage, register and make use of them so as to comply with accounting and taxing legal regulations.


2.- Objectives. (numbered 1 to 5)

1.- The student should get to know about the Purchase Order, the Delivery note and the Invoice, and get a fairly deep knowledge of their economic and legal meaning within the company´s activity, in order to, firstly, get a correct understanding of them at their sight, and, furthermore, be able to produce any of them in a swift and correct way for a given operation.

They should in any case be able to give a sound response to the following questions:

a) What is this document, what is it for, what is its main meaning?

b) Who must take part in it, and in which position and role?

c) What are the pieces of information that must be shown in it?

d) What among all the information displayed in it are the essential, indispensable ones, without which the document would become useless, meaningless, or inefficient or will be cause of trouble or setbacks?

e) What is the link between that document and the other two?

2.- The student should, therefore, get to know which are the main specifications or pieces of information that must be shown in each of the three documents, and which of them are crucial, indispensable, and why. He should also understand what kind of problems and troubles would arise if some of those essential mentions are overlooked or left out.

3.- The student should know the extent and level of detail that is needed to accomplish each piece of information in each document of the three, as to comply with the legal regulations, in order to make sure the whole document is really useful, valid and effective.

4.- The student should understand how the three documents are linked and interconnected, as well as have a good command on managing, registering and keeping them in such a way that could abide by the accounting and taxes legal regulations.

5.- The student should understand the close bond existing between these documents and the company´s ethical vision and behaviour, for they reflect and reveal the corporation´s choices concerning the loyalty to its clients and suppliers, and so shows its social liability. As a consequence, the documents should contribute to the certainty, transparency and honesty in all commercial relationships, and to the common good by the due payment of taxes.


3.- The presentation.

It can be seen either in KeyNote for Mac or in PPT for Windows. (linking labels nn.1 or 2)


4.- The written explanation.

What is a Purchasing order?

A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Acceptance of a purchase order by a seller forms a contract between the buyer and seller, and no contract exists until the purchase order is accepted.

How Does a Purchase Order Work?

A purchase order is a legally binding document between a supplier and a buyer. It details the items the buyer agrees to purchase at a certain price point. It also outlines the delivery date and terms of payment for the buyer.

Purchase orders are typically used when a buyer wants to purchase supplies or inventory on account. This means the supplier delivers or ships the purchased items prior to payment, with the purchase order serving as its risk protection.

Purchase orders help suppliers compare ordered inventory to inventory shipped and on hand for accuracy. They also allow the supplier to track when payments have been made on specific orders.

Buyers hold copies of orders they place to monitor timely receipt of the items.


What a Purchasing order has to mention?

Purchase orders can be of varying complexity and design but should make sure to touch on the following points:


Product: The Purchase Order should point out what you intend to buy.  You should also include the quantity, unit type and even a short description.

For example: 4  cases of bottled water.  Instead of 4 bottles of water. 

Delivery: State when and how goods will be shipped to a specified address.  Example: FedEx overnight to (office address)

Price: Make sure to state the price properly, referencing your vendor’s product catalogue or your pre-negotiated pricing contract. Specify if the cost is for per unit, total cost, weight or volume.  Make sure to also include the currency you will be using for each purchase order. Example: $13 USD per Pound  |  7 € per Kilogram  |  $50 CAD total cost

Payment: There are many different ways to make a payment. You may have pre-negotiated terms with your vendor. Specify how you intend to make good on your purchase whether by credit card, vendor credit, cheque, cash, bank transfer etc.  Don’t forget to calculate the tax.

Example: Payment to be made by Visa card on file. 


Delivery note. A definition.

1. From businessdictionary.

A document accompanying a shipment of goods that lists the description, and quantity of the goods delivered. A copy of the delivery note, signed by the buyer or consignee, is returned to the seller or consignor as a proof of delivery.

2. From Dictionary of International trade. 

Through the web page

Delivery note

The delivery note is a document that certifies the delivery of goods to the buyer, who must sign it to make it clear that the goods have been delivered in accordance with the conditions established. The use of this document is not mandatory, although in international trade is very common especially when the exporter delivers the goods in the seller’s country and he needs a document proving delivery. This document must be issued in a simple format that contains the following information:

Data identifying the seller and buyer.

Reference to the invoice.

Number and description of the products.

Date of issue of the document and date of delivery of the goods.

Name, signature and stamp of the purchaser, accepting delivery of the goods in good condition.

What is an 'Invoice'

An invoice is a commercial document that itemizes a transaction between a buyer and a seller. An invoice will usually include the quantity of purchase, price of goods and/or services, date, parties involved, unique invoice number, and tax information. If goods or services were purchased on credit, the invoice will usually specify the terms of the deal, and provide information on the available methods of payment.

Also known as a "bill", "statement" or "sales invoice".

Invoices will track the sale of a product for inventory control, accounting and tax purposes. Many companies ship the product and expect payment on a later date, so the total amount due becomes an account payable for the buyer and an account receivable for the seller. Modern-day invoices are transmitted electronically, rather than being paper-based. If an invoice is lost, the buyer may request a copy from the seller.

TRANSACTIONS as sales can be made

a) on credit. The customer is given a TERM to make the payment, of 30, 60 or 90 days in most of cases.

b) on cash. (COD Cash on Delivery). The customer is delivered the goods if he pays at the very moment.

Make sure your invoice contains all the correct details.

If you are trading across borders, remember to check that your invoice template contains the correct IBAN* and SWIFT/BIC** numbers

A unique invoice number is a must.

By law, every invoice ever created has to have a unique serial number, and once the invoice is finalised, businesses are legally prohibited from going back and tampering with this number.

Add a date and payment term

The invoice issue date also indicates the moment from when the terms of payment take effect.

Skipping the date on the invoice therefore risks creating confusion about how much VAT you have to pay at the end of the month.

When adding a date, it is also important to indicate within what time period you expect an invoice to be paid.

What you sell must be counted

Clearly named, line by line enumeration of goods shipped or services provided makes it easy to understand what you are charging for and helps a customer quickly verify that all items were delivered.

It is also strongly advised to include a unit price, the number of units shipped, the applicable VAT percentage and VAT amounts and a total line amount next to each individual item on your invoice.

A LAST RECAPPING to make out the differences and the way the three documents are bond to work together.

Aren´t they too much alike one another?

What makes of them something specific, different?

What is the point for each of them?

Purchase order

A commitment is undertaken between two parties. The seller´s acceptance makes a contract of it. They should comply with the agreed conditions.

There must be two wills reflected thereby on two signatures. There is a kind of a promise that has to be kept. Confidence is involved.

Delivery note

The goods or services have been delivered in full accordance with every agreed condition. The buyer´s signature on it bestows a legal evidence

of his acceptance, stating that he is fully satisfied, and so becoming fully obliged to pay the subsequent invoice.


Three main aims of the invoice are:

1.- Accounting register.

2.- Tracking and matching stocks and deliveries.

3.- Comply with taxes regulations and payments.

They built up the Assets or the Liabilities in the Balance sheet statement.

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