What Is the Purchasing Document That Can Be Resulted from Outline Agreement

When it comes to purchasing in the business world, there are several types of documents that can be created in order to initiate a transaction. One such document is the purchasing document, which is typically generated as a result of an outline agreement made between a buyer and a seller. In this article, we will explore what a purchasing document is and how it relates to outline agreements.

Firstly, let`s define what an outline agreement is. An outline agreement is a contract between a buyer and a seller that specifies the terms and conditions of future transactions. These agreements can be established with a single vendor or with multiple vendors, and they typically cover a specific time period or quantity of goods or services.

Now, let`s take a look at what a purchasing document is. A purchasing document is a type of legal document that serves as a formal request for goods or services from a supplier. It outlines the specific details of the transaction, such as the quantity, price, delivery date, and payment terms. Purchasing documents are typically generated by a buyer in order to initiate a purchase from a supplier.

So, how do these two documents relate to each other? Typically, a purchasing document is created as a result of an outline agreement between a buyer and a seller. An outline agreement sets the terms and conditions of future transactions, while a purchasing document is the actual document that initiates the transaction and requests the goods or services specified in the agreement.

For example, let`s say that a company enters into an outline agreement with a supplier for the purchase of 100 units of a specific product over a six-month period. The outline agreement would specify the terms and conditions of the transactions, such as the price per unit and the delivery schedule. When the company is ready to place an order for the first 20 units, they would generate a purchasing document that includes the specifics of that particular order, such as the delivery date, the price per unit, and the payment terms.

In conclusion, a purchasing document is a vital component of the purchasing process that is typically generated as a result of an outline agreement. By understanding the relationship between these two documents, businesses can ensure that their purchasing transactions are conducted in a legally binding and efficient manner.