Purchase Order and Goods Transportation: Key Aspects
Purchase Orders
A purchase order is a document that details a transaction between a buyer and a supplier. It specifies the products, quantities, prices, and agreed-upon delivery date. The purchasing department can send the order via letter, fax, email, phone, or through an agent.
Types of Orders
- Firm Order: When both parties agree on the transaction terms, often based on a pre-negotiated contract. This is also known as a cream order or request.
- Conditional Order: When the buyer sets conditions for the seller, and the order is contingent upon an agreement. This is also known as an order proposal.
Order Details
An order note details the items ordered and the main terms of the transaction. It includes:
- Buyer and seller identification
- Order number
- Issue date
- Delivery address
- Item descriptions and quantities
- Unit prices
- Delivery date and payment terms
- Discounts applied
- Signature of the requestor
Typically, two copies of the order are made.
Order Tracking
Orders are tracked from the time they are sent until the goods are received in the warehouse. This is recorded in an order book, which includes:
- Order number
- Order date
- Supplier and CIF code
- Delivery date
- Storage location
- Receipt and delivery note number
Goods Transportation
Goods can be transported in several ways:
- Seller or buyer’s vehicles
- Hired carrier or freight forwarder
- Parcel and courier agencies for urgent, small items
Parties Involved in Transportation
- Remitter/Consignor: The person who hires the transport, delivers the goods, and pays for the transport.
- Carrier: The person who transports the goods and delivers them to the destination within the agreed time.
- Consignee: The person who receives the goods and pays for the transport if applicable.
A contract of carriage is an agreement where the carrier moves goods between two points for a price.
VAT in Transport
- Goods transport: 16%
- Passenger and luggage transport: 7%
- International transport: 0%
Transportation Payment Methods
Payment methods depend on when the payment is made and who makes it:
- Hold Switch Delivery Fees: The sender pays at the time of sending.
- Postage Due: The recipient pays within 24 hours of delivery.
- Reimbursement: The recipient pays for the goods and the shipping.
Obligations and Responsibilities
- The carrier is responsible from the moment they receive the goods and must deliver them in the same condition.
- The shipper is responsible for any damage to goods during transport.
- Claims against the carrier must be made within 24 hours of receipt. Visible damage must be claimed upon delivery.
- If goods are not delivered on time, the carrier pays compensation as agreed in the transport document.
- The consignee must pay freight charges and receive the goods within 24 hours of delivery.