Indent is an order placed by an importer for goods from overseas. It is an order for goods from an agent or a correspondent abroad with full particulars and conditions as to the quantity, price, and possible delivery date, etc. Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Example – They put in an indent for a new stock of soap. Traditionally, these documents featured indented sides or perforated edges. Purchase indents are audit documents used to track the movement of materials prior to their receipt by the buyer. Purchase indent is documented by the firms against the required inventory. In major firms; there is a separate department to raise the indent of the inventory. In order for a sale to qualify as an indent sale, the local agent must be working on behalf of a nonlocal entity.
Indent is a purchase order often placed through an agent (indent agent) under specified conditions of sale. When the importer places an order to import the goods, he places an order for the goods to be despatched. This order is known as ‘indent’ containing a description of the goods ordered, prices to be paid, delivery terms, packing and marking details, and delivery instructions. So, indenting is nothing but the giving requirement for the purchase of materials or goods for production or consumption or any other purpose. A purchase order is a commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services. It generally is for a large quantity of standard or custom made products manufactured overseas and due to the higher volumes, the price per unit is lower. Prior to the Purchase Order, a document is floated internally inside the organization to authenticate the requirement of stock.
- It makes inventory management work quite easier.
- Complete documentation is there regarding the required quantity and quantity in hand. So the scope of mismanagement is reduced to a great extent.
- It is an authorized document that can help track the delivery of the ordered material before being received by the customer.