Letter to Place an Order
A letter placing an order with a supplier: the items, quantities and rates worked out, the delivery date and the payment terms.
Details
letter to place an orderRed highlights mark what is still blank. Everything stays on this device.
Dear Sir / Madam,
We are pleased to place an order for the following items:
| No. | Item | Quantity | Rate (₹) | Amount (₹) |
|---|---|---|---|---|
| [one line per item — item | quantity | rate] |
Delivery: [when and where].
Payment: [payment terms].
Kindly acknowledge this order, confirm the delivery date, and quote the order number on your delivery challan and invoice.
What is a Letter to Place an Order?
A letter to place an order tells a supplier exactly what you want to buy, at what price, by when, where and on what terms. It refers to the supplier's quotation or price list, lists each item with its specification, quantity and rate, and asks the supplier to confirm. Once the supplier accepts, the order and its terms form the contract, so a vague letter leaves you arguing later about what was agreed, what arrived and what is owed.
Small businesses, shops, clinics, schools, libraries, housing societies and offices without a purchase department use it when they buy against a supplier's quotation: books for a library, uniforms for a school, stationery for an office, spare parts for a workshop. Larger firms issue a numbered purchase order form for the same job, and a letter suits smaller buyers and one-off purchases. A letter placing an order, often for books for a school library, is also a common question in school and college English exams.
Who may place an order, and how, is set by the buyer's own rules. A government school or office usually has to compare quotations and get approval under its department's or State's purchase rules before an order goes out, and a company may need sign-off from someone with financial authority. Tax is named differently by country: GST in India, Canada and Australia, VAT in the UK and the EU, sales tax in the US. Say whether your rates include it. The law governing the sale also differs, so check your own country's rules before relying on the letter in a dispute.
An order letter is an offer to buy on stated terms; until the supplier accepts it there is no deal, so ask for an acknowledgment rather than assuming. It is not a payment, an invoice or a delivery note. If the supplier's acknowledgment changes the price, the quantity or the delivery date, treat it as a new proposal and settle the difference in writing before the goods are sent. For large or long-running supply, a formal contract drawn up with advice does more than a letter can.
What to put in a Letter to Place an Order
These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.
| Field | What goes in it |
|---|---|
| Business name | For example: Barton Supply Co. |
| Your address | For example: Unit 7, Barton Road, Columbus, OH 43212 |
| Order no. | For example: KSL/PO/2026/219 |
| Supplier | For example: Sri Venkateswara Stationers |
| Supplier address | For example: 22 Main Road, Kothapet, Guntur 522001 |
| Their quotation or price list optional | For example: your quotation no. SVS/Q/481 dated 12 September 2026 |
| Items | One per line: Item | Quantity | Rate per unit |
| Delivery | For example: by 5 October 2026, at our office at the address above |
| Payment terms | For example: within 30 days of receiving the goods and your invoice |
| Other conditions optional | One per line |
| Signed by | For example: Priya Menon |
| Their title | For example: Purchase Officer |
How to write a Letter to Place an Order
Number the order and address the supplier
Give the order a number from your own series, such as ORD/LIB/007, and date it. Address the supplier by the name and address shown on their quotation, and mark it for the attention of the person who sent the quote. The supplier quotes that number on the delivery challan and invoice, and it is what lets you match the three when the bill arrives.
Refer to their quotation or price list
Name the quotation or price list you are accepting, with its reference number and date, exactly as the supplier wrote them. This fixes the prices, discounts and terms you are relying on. If you are ordering at a price or on terms different from those quoted, say so plainly, because silence lets the supplier bill at whatever its current list price happens to be.
List each item with specification and rate
Set out a table with a line for each item: a description precise enough to prevent substitution, the quantity and unit, the rate and the amount, with a total. For books, give title, author, publisher, edition and copies; for goods, brand, model, size or grade. Say whether rates include tax and delivery. ‘20 plastic chairs’ invites whatever is in stock; ‘20 armless moulded chairs, white, as per sample’ does not.
Fix the delivery date, place and conditions
State the date by which you need the goods, the delivery address, the person who will receive them and who pays for transport and unloading. Add packing and quality conditions: books wrapped against rain, fragile items crated, goods to match the approved sample, damaged items replaced at the supplier's cost. A date tied to a reason, such as ‘before the library reopens after the vacation’, is harder to let slip.
Set payment terms and ask for acknowledgment
Say how and when you will pay: in advance, on delivery, or by bank transfer or cheque within an agreed period after the goods and a correct invoice arrive. Ask the supplier to acknowledge the order, confirm the delivery date and quote your order number on the challan and invoice. Have the letter signed by someone with authority to buy, with their name and title.
Common mistakes
- Not referring to the quotation, which lets the supplier bill at a different price and leaves you nothing in writing to hold them to.
- Describing items loosely, such as ‘office chairs’ or ‘science books’, which gets you whatever the supplier has in stock and an argument over returns.
- Leaving out a delivery date, so goods that arrive after the event or the start of term break no term you set.
- Not asking for your order number on the challan and invoice, which makes deliveries and bills hard to match and holds up payment.
- Having the letter signed by someone without authority to buy, which lets either side later dispute that the order was ever placed.
Frequently asked questions
How do I write a letter to place an order?
Address the supplier, refer to their quotation or price list, and list each item with its specification, quantity, rate and amount, with a total. State the delivery date and place, the payment terms and any packing or quality conditions. Ask the supplier to acknowledge the order and to quote your order number on the delivery challan and invoice. Sign it with your name and title, as someone authorised to buy.
What is the format of an order letter?
It follows the formal letter layout: the buyer's name and address, an order number and date, the supplier's name and address, a subject line such as ‘Order for office furniture’, and a salutation. The body refers to the quotation, sets out the items in a table, then covers delivery, payment and conditions, and asks for acknowledgment. It closes with the signature, name and title of the person placing the order.
How do I write a letter to order books for a school library?
Write from the school, usually over the signature of the Principal or the librarian, to a bookseller whose catalogue or quotation you are using. List each book with title, author, publisher, edition, number of copies and price, total the order, and note any discount the bookseller has offered. Ask for delivery before term begins, in good condition, with damaged copies replaced, and say how the school will pay.
What is the difference between an order letter and a purchase order?
They do the same job: each is an offer to buy specific goods on stated terms. A purchase order is a numbered form issued from a buyer's purchasing system, often with standard conditions printed on the back. An order letter puts the same details into a letter, which suits smaller buyers, schools, libraries and one-off purchases. Either way, once the supplier accepts, the order and its terms form the contract.
What should an order letter include?
An order number and date; the supplier's name and address; a reference to their quotation or price list; each item with specification, quantity, rate and amount, and the total; whether prices include tax and delivery; the delivery date and place; packing or quality conditions; payment terms; a request for acknowledgment; and the signature, name and title of the person placing the order. Anything left out is open to argument later.
This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.