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Invoice pro forma for Purchasing

hello good luck for your friends i hope you are doing well feeling well living every day with a positive intention to enjoy more and love more today we're gonna talk about the purchase order and invoice two essential documents that defines a legal transaction if you are an e-commerce seller you may know the basics about p-o-m-p-i however sometimes the basic may not be enough so in this video we're gonna cover everything you must know about po and pi let's get started all right my darling friends in this video we're gonna answer three basic questions by the end of the video you should know all the answers especially if you are in ecommerce business right first question is what is a performer invoice what comes to your mind a performer invoice is a preliminary bill of sale why is preliminary because the terms and conditions of this pi can be changed by the buyer so this leads to the question who made the pi the seller in your case it could be your supplier if you don't like the price shown on the pi you can negotiate if you don't like the delivery date that's shown on the pi you can renegotiate as long as you don't confirm this pi this pi is not binding to the buyer but it is binding to the seller this leads to the second question at what point a pi performer invoice becomes binding for the buyer you if you're buying products from the suppliers well there are two scenarios the first one is the supplier offer you their pi first and offer a bill of sale preliminary bill of sale if you confirm their offer with your purchase order then this p i and p all work together to lock this transaction at that point both documents becomes legal and binding now the second scenario i would say it represents probably 80 of the business reality if you're a buyer you probably know what i'm talking about most of the times we send our purchase orders to the supplier first and then suppliers send their pi to confirm the po in this case is this pi a binding document well we can debate on this because pi is a preliminary bill of sale but the for the sake of reality yes because our po now becomes an offer to the supplier i want to buy this product at this price and the pi becomes an acceptance so both documents work together now logged this transaction now there is an interesting question what if the terms and conditions on the pi don't match your purchase order terms and conditions who has the upper hand for example if your purchase order specifies the delivery date to be march 1st but the suppliers pi said the delivery date is april 15th because they have a production delay can you hold your supplier for the on-time delivery against march 1st as you specified the answer is no if you didn't say anything against their pi then april 15 is deemed to be the accepted terms and conditions in the contract world you must remember whoever had the last say without the other party challenge that that will be deemed to be accepted terms and conditions by both parties so if you disappeared with the supplier for on-time delivery the suppliers april 15 day will win because that's the last save this leads to the third question what is the buyer's best practice when it comes down to evaluating pi information the best practice lies in how we examine the information on the pi the reality is the pi could be very simple there are five essential elements what product i'm selling to you at what price what quantity and what is the shipping term and what's the payment term on your purchase order though it could be a comprehensive list your product specification and all the terms and conditions related to this transaction it could include the warranty and the late delivery penalty all these terms and conditions that you want your supplier to agree and fulfill now how do you close the gap i already said it early whoever had the last say prevails if the supplier is not confirming the late delivery penalty or the warranty issues how do you reconcile this gap let me give you a tip when you examine your pi the suppliers pi you must have the supplier call out your purchase order by having the supplier calling out your po basically you are having them agree and confirm the terms and conditions on the po you want the suppliers pi to be the last say but their last say is confirming what you told them to do on your po that's one of the good tips right in sourcing warriors mastermind course i have a specific tutorial on this pi examination because it's such an important piece of document it could lock you in this legal and funding transaction did you learn something what is pi a preliminary bill of sale is pi binding there are two scenarios what is your best practice making sure you prepare a thorough purchase order with great terms and conditions that are favorable to you and having the supplier call out your purchase order in their pi did you enjoy this video if you set your intention to enjoy more and love more give me a thumbs up i really appreciate your time if you're interested in sourcing warriors mastermind course the link is below i look forward to working with you helping you through this remarkable year have a great day ahead i'll see you in the next video [Music] [Music] you