Remember that your foreign correspondent may have a limited knowledge of English. Also, with the initial contact letter do not make any promises unless you plan to fulfill your obligations. If you state that you can ship on a particular day, make sure that you do. The main purpose of a purchase order is to act as a confirmation to the seller that his product or service is desired and that the terms of sale set forth in the proforma invoice are agreeable. The purchase order also acts as an internal control on spending.
Payment is made when a commercial invoice is provided by the seller.
Essential elements of a purchase order include a description of the goods or services, the cost of goods or services, name and address of seller and buyer, the term of sale, the method of transportation and designated port, and date in which the goods are required. Prior to manufacture of goods, you will want to make certain you possess the proper information derived from the purchase order or other correspondence. If the information has not been made available to the American manufacturer, he may find himself incurring increased inventory costs over some length of time.