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****PURCHASE ORDER*** * NO. 1234567  DATE 11/12/13
VENDOR COPY TO: 1‐2345 INVOICE MONTANA GROCER TERMS: 2% 10, Net 30
MONTANA COMPANY TO: PO BOX 5678
JOE MONTANA TWO CITY, MT 59456 FREIGHT: CUST PICKUP
PO BOX 1234 406 891 0111 10/11/13
CITY, MT 59123
406 123 4567 SHIP TO: MT DISTRIBUTOR COLL: 3.250 CWT
PO BOX 910
THREE CITY, MT 59789
ORDER CASES ITEM PACK SIZE DESCRIPTION UPC WEIGHT PRICE EXTN
12 12 7654321 12 12 oz HAM, THIN SLICED 54321 120 27.500 330.00
28 28 6543210 6 9 oz THIN SL HNY HAM TUB 43210 147 14.220 398.16
28 28 5432109 6 9 oz THIN SL TRKY BRST TB 32109 150 14.220 398.16
28 28 4321098 6 7 oz THIN SL RST BEEF TUB 21098 126 14.220 398.16
SUBTOTAL 1,524.48 393202ACOMMENTS:
PALLETS
SHIPPING TERMS CUST PICKUP 10/11/13. SUBJECT TO REFUSAL IF DATE NOT MET. FRT ALLOW
ITEMIZED PACKING LIST TO ACCOMPANY FREIGHT BILL. PO # TO APPEAR ON ALL HAND/STRG
DOCUMENTS. PRODUCT TO BE SEGREGATED AND PLACED ONTO OR ADJACENT TO OUR PROMOTION
DOCK. NOTIFY CARRIER THAT DELIVERY APPOINTMENT IS NECESSARY. PALLETS ARE FREE OTHER
OF CHARGE. EXCHANGE OR BILLED PALLETS ACCEPTED ONLY IF AUTHORIZED BY MT TOTAL 1,524.48 100050U
DISTRIBUTOR. CASH DISC
FRT COST 17.66 100050UTOTL: 96 96 WT: 543 CUBE: 31 BYR: JILL DOE 1234
**************************************************************************************************
CASES: This refers to the number of cases (master packs) ordered.
CWT: This is the cost per hundred weight (100 lbs), useful information for distributors and warehouses. The CWT is
determined here as follows:
1. Divide the WT (weight) of 543 lbs by 100 = 5.43 to get the hundred weight
2. Divide the FRT COST (freight cost) 17.66 by the 5.43 hundred weight = 3.250
FRT ALLOW: This refers to the freight allowance, the difference between the F.O.B. Origin and F.O.B. Destination prices.
PACK: This refers to the number of individual retail items in the case (master pack).
PALLETS: This refers to the billed or exchanged pallet cost.
PURCHASE ORDER (PO): A buyer‐generated document that authorizes a purchase transaction. When accepted by the
seller, it becomes a contract binding on both parties. A purchase order sets forth the descriptions, quantities,
prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and
identifies a specific seller. Also called order.
SIZE: This is the size (weight) of the individual retail items.
TERMS: These are the payment terms agreed upon by the seller and the buyer. Typical grocery industry terms are Net
30, indicating that payment is due to the seller within 30 days of the origination of the purchase order. Often,
sellers offer a cash discount (CASH DISC) for early payment, such as 2% 10, indicating that if the buyer pays the
seller within 10 days of the origination of the purchase order, the seller discounts the total by 2%
UPC: This is the Universal Product Code for each individual retail item.
WEIGHT: This is the total weight of the order (# of cases x case weight).