Order form: 13 fields to be filled in accurately
Although not mandatory, the purchase order serves as legal proof of a transaction provided that all the required fields are correctly completed.
As a key document in the ordering process between seller and buyer (just like the quotation, delivery note or invoice), the purchase order sets out the nature of the transaction in a legally valid manner. But it must be completed correctly!
Order form: details of the signatories
The fields on the order form must allow the service provider to be identified accurately.
#1 Company name
The first item listed is therefore the company’s registered name, preceded by its legal form. In the case of a limited liability sole proprietorship (EIRL), it is preferable to state the entrepreneur’s first name and surname.
#2 Identification numbers and VAT
The Business Identification Number (BIN) must also be provided. Consisting of nine digits, it provides specific information not only on the identity of the business, but also on what was previously its VAT number.
Example of an IDE number: CHE-123.456.789 VAT
#3 Company address
The address of the service provider’s registered office must also be provided, specifying, where applicable, whether the company operates as a tenant-manager or a tenant-agent.
#4 Share capital
One of the mandatory fields in the Purchase Order (PO) relates to the company’s share capital. In the event of ongoing insolvency proceedings, this must be stated in order to ensure complete transparency for the recipient.
#5 Customer details
Just like the service provider, the client’s company name must also be stated on the order form. Legal form, ID number (if applicable), business address… Only the share capital does not need to be provided.
Please note: We recommend that you provide the full name of the individual placing the order and ensure that they are authorised to do so.
Order form: how to place an order
#6 Classification of goods and services
The BDC must clearly set out the criteria required for the order to be approved, namely:
- details specific to the products and/or services ordered;
- the quantity of each of the products and/or services ordered.
Good to know: When providing a service, you are required to specify the exact nature of each service and its estimated duration.
#7 Command properties
The authenticity of the order is verified, in particular, by the accuracy of its issue date and a unique order number. Similarly, the delivery date must appear on the delivery note.
#8 Pricing factors
Just as each item must be accompanied by its unit price excluding VAT (excl. VAT) and including VAT (incl. VAT), each line of products and/or services in the quotation must be accompanied by the total amount excluding VAT.
In addition to the total price of the service (excluding and including VAT), VAT must be stated as a percentage based on the rate applicable to the service (for further information, see the details of Swiss VAT rates for 2021), as well as in monetary terms (in Swiss francs).
Please note: in the case of an international transaction, the total amount must also be stated in the customer’s local currency.
Order form: terms and conditions of sale
#9 Payment and delivery
The BDC must include the payment terms required by the service provider, namely:
- the payment method (credit card, online bank transfer, cheque, cash, etc.);
- payment terms and any late payment penalties;
- the optional request for a deposit.
The delivery terms are also set out in detail; in particular (where applicable) the costs (delivery charges) and discounts (free delivery, ex works).
#10 Specific terms and conditions
Some contracts include specific terms and conditions, such as warranty terms and the right of withdrawal.
Although the latter is aimed more at private individuals, there are certain instances where it is used between businesses.
In any case, it is necessary to set out the conditions for applying such arrangements in a clear and understandable manner.
#11 Terms and Conditions
Although this is not mandatory, it is still possible to include the General Terms and Conditions of Sale (GTC) in the order form. Indeed, any business customer may require these to be included.
The Terms and Conditions include, in particular:
- the unit price list;
- any applicable discounts;
- the general terms and conditions of payment;
- the general terms and conditions for cancellation.
Please note: The inclusion of the Terms and Conditions implies that they must be read and accepted by the customer. They must therefore be clear and legible, usually printed on the reverse of the delivery note where a signature is required. We also recommend including a tick box preceding the statement: “I confirm that I have read and accept the Terms and Conditions printed on the reverse of the delivery note”.
Order form: conclusion
#12 Signature
Although the purchase order is not a mandatory document for concluding a sale, its signature nevertheless constitutes a legally binding commitment on the part of both parties.
The BDC signature therefore secures the sale by authenticating the order in question and makes it admissible as evidence in the event of a commercial dispute.
Good to know: In the event of a dispute, it is possible to refer the matter to a mediator, provided this is stipulated in the BDC.
By signing, you agree to:
- the customer to settle the invoice within the agreed time frame and to collect the goods or make use of the service in question in accordance with the terms and conditions of sale;
- the service provider to fulfil the order in accordance with the stipulated terms and conditions.
#13 “Read and approved”
The signature must always be accompanied by the words “read and approved” or “agreed”. These serve to confirm the customer’s agreement, although a purchase does not require a purchase order to be confirmed.
Please note that a non-compliant BDC may result in a fine for the issuer and could jeopardise the order!
Purchase order: best practices and special cases
To be valid, the order form must be legible and clear. The formatting of the text (underlined or bolded sections) can help to achieve this.
Depending on the circumstances, certain specific additional details may be required.
Information regarding the signatories, ordering procedures, terms and conditions of sale, and signatures: each section of the order form contains several fields that must be completed in order for the document to be legally binding, particularly in the event of a dispute.
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