Writing a Good Purchase Order Cancellation Letter (with Examples)
Use these example purchase order cancellation letters as templates for your formal cancellation letter.
Last updated on November 26, 2023
Consumers should not wait to cancel a purchase. It is more likely the cancellation will be effective if the time between the purchasing and cancellation is short. Some companies have a time limit in which cancellations must be made.
Businesses also cancel purchase orders. The most common reason for cancelling an order is when a supplier doesn’t honor their commitment and fails to deliver the goods on the agreed date.
Cancellation a Purchase
Cancelling a purchase is usually disappointing because the consumer or business was counting on receiving the products, but, even if they feel disappointed and somewhat angry, they should be polite when writing a letter. If the consumer decided that they cannot afford the products or do not need them, they should also feel free to cancel their order. The letter should be short and firm, giving all the required information in a clear format.
The information that should be included in the purchase order cancellation letter:
Businesses also cancel purchase orders. The most common reason for cancelling an order is when a supplier doesn’t honor their commitment and fails to deliver the goods on the agreed date.
Cancellation a Purchase
Cancelling a purchase is usually disappointing because the consumer or business was counting on receiving the products, but, even if they feel disappointed and somewhat angry, they should be polite when writing a letter. If the consumer decided that they cannot afford the products or do not need them, they should also feel free to cancel their order. The letter should be short and firm, giving all the required information in a clear format.
The information that should be included in the purchase order cancellation letter:
- The name of the customer
- The date the order was placed
- The order number of the items being cancelled
- A list of name of items being cancelled
- A list of items not being cancelled if they are on the same purchase order
- The list should include the size, color, quantity and inventory number of the items being cancelled
- The time the cancellation should be completed
- The reason for the cancellation (optional)
- A request for written confirmation of the cancellation
- Copies of any receipts, invoices or purchase orders
If the product or goods were received and found to be faulty or not as advertised, this could be mentioned in the letter. However, it is not essential for an individual consumer to give a reason. A business that is cancelling a shipment of goods, should give a reason. Even with proof of a good reason for cancelling, the cancellation is not complete until the other party acknowledges or agrees with it.
Two Examples
Here are two examples of a purchase order cancellation letter, one is from a business and one is from an individual consumer. Certified mail should be used for either of these letters because it will provide the customer with proof of the date and time the cancellation letter was received.
This information may be necessary if any dispute later occurs about the order processing. For example, a business may say they didn’t receive the letter in time to stop the purchase, but the date they received the letter is before the date the goods were sent.
Two Examples
Here are two examples of a purchase order cancellation letter, one is from a business and one is from an individual consumer. Certified mail should be used for either of these letters because it will provide the customer with proof of the date and time the cancellation letter was received.
This information may be necessary if any dispute later occurs about the order processing. For example, a business may say they didn’t receive the letter in time to stop the purchase, but the date they received the letter is before the date the goods were sent.
Business Purchase Order Cancellation Letter Example
Note: The following example purchase order cancellation letter is a basic template that can be easily customized to fit a variety of circumstances.
Business Purchase Order Cancellation Letter Example
COMPANY LETTERHEAD
Name of Company Representative who is cancelling the order
Name of Company
Address of Company
City, State, Zip Code
DATE
Name of Company
Name of Person responsible for taking orders
Address of Company
City, State, Zip Code
Dear NAME of RESPONSIBLE PERSON:
This letter is a formal request to cancel the order REF. NUMBER that I placed with you on DATE. It is for DOLLAR AMOUNT.
As agreed by you, the goods were to be delivered to this address on or before DATE. Today is five days past the agreed date, and we have not received any notice from you about the delay.
I expect you will credit our account with a full refund for AMMOUNT that was paid according to the agreement signed by both of us within 10 working days. I have enclosed a copy of the agreement. Kindly send written confirmation of my cancellation.
If you have any questions you can reach me at [email protected] or at 555-123-4567. Thank you for your quick attention to this matter.
Sincerely,
Signature of business representative
Printed Name of business rep
List of enclosures
Individual Purchase Order Cancellation Letter Sample
Note: Before writing a letter, take a moment to check on the cancellation policy of the particular company. Depending on the particular company and the terms of your purchase, the customer may be expected to submit a letter of cancellation by a certain date in order to receive any form of refund.
Purchase Order Cancellation Letter for Individual Sample
Name of consumer
Address of consumer
City, State, Zip Code
DATE
Name of Company
Address of Company
City, State, Zip Code
RE: Cancellation of order number NUMBER
Dear Sir/Madam:
This letter is to formally inform you that I am cancelling order number NUMBER and request a full refund. The amount of the order is DOLLAR AMOUNT. I placed the order on DATE. Enclosed is a copy of the invoice.
The items on the order to be cancelled are:
- Three light blue T-shirts, size L, inventory number NUMBER
- One beige tunic, long sleeved, size L, inventory number NUMBER
Thank you for your attention to this matter. I expect written confirmation of this cancellation from you and to see a full refund within 10 working days. If you have any questions, I can be reached at [email protected] or at 555-123-4567.
Sincerely,
Signature of consumer
Printed name of consumer
List of enclosures
By Andre Bradley
Frequently Asked Questions (FAQs)
Q: What is a purchase order cancellation?
Answer: A purchase order cancellation refers to the process of officially terminating an order that was previously made. This can happen for various reasons, such as delays, changes in requirements, or issues with the supplier. It's a formal process that usually involves notifying the supplier in writing and may involve legal considerations depending on the terms of the original purchase order and contract.
Q: What are the common reasons for cancelling a purchase order?
Answer: Common reasons for cancelling a purchase order include unexpected changes in business needs, budget constraints, delivery delays, quality issues with the products or services, finding a better offer from another supplier, or operational changes like downsizing or changing business strategies. In some cases, errors in the order itself, like incorrect quantities or specifications, can also lead to cancellation.
Q: How do I cancel a purchase order?
Answer: To cancel a purchase order, you should first review the terms and conditions of the original order and any applicable contractual agreements. Then, communicate with the supplier in writing, preferably through an official cancellation notice. This notice should include details like the PO number, reasons for cancellation, and any agreed-upon penalties or terms. It's important to maintain a professional tone and adhere to any legal or contractual obligations.
Q: Are there any penalties for cancelling a purchase order?
Answer: Penalties for cancelling a purchase order depend on the terms of the contract or agreement with the supplier. Some contracts may include cancellation fees or require compensation for costs already incurred by the supplier. In other cases, particularly if the cancellation is due to supplier's failure to meet terms, there may be no penalty. It's crucial to understand the specific terms outlined in your contract.
Q: Can a supplier refuse to cancel a purchase order?
Answer: A supplier can refuse to cancel a purchase order if the cancellation violates the terms of the contract. For example, if the contract doesn't allow for cancellation or if the cancellation notice is given too late. In such cases, it may be necessary to negotiate with the supplier or seek legal advice to resolve the situation.
Q: How can I avoid the need to cancel purchase orders in the future?
Answer: To avoid the need for cancelling purchase orders, thorough planning and clear communication are key. This includes accurately assessing your needs before placing an order, choosing reliable suppliers, having clear terms and conditions in your contracts, and maintaining open lines of communication with suppliers to address any issues promptly. Regular review and adjustment of procurement processes can also help minimize the chances of order cancellations.
Answer: A purchase order cancellation refers to the process of officially terminating an order that was previously made. This can happen for various reasons, such as delays, changes in requirements, or issues with the supplier. It's a formal process that usually involves notifying the supplier in writing and may involve legal considerations depending on the terms of the original purchase order and contract.
Q: What are the common reasons for cancelling a purchase order?
Answer: Common reasons for cancelling a purchase order include unexpected changes in business needs, budget constraints, delivery delays, quality issues with the products or services, finding a better offer from another supplier, or operational changes like downsizing or changing business strategies. In some cases, errors in the order itself, like incorrect quantities or specifications, can also lead to cancellation.
Q: How do I cancel a purchase order?
Answer: To cancel a purchase order, you should first review the terms and conditions of the original order and any applicable contractual agreements. Then, communicate with the supplier in writing, preferably through an official cancellation notice. This notice should include details like the PO number, reasons for cancellation, and any agreed-upon penalties or terms. It's important to maintain a professional tone and adhere to any legal or contractual obligations.
Q: Are there any penalties for cancelling a purchase order?
Answer: Penalties for cancelling a purchase order depend on the terms of the contract or agreement with the supplier. Some contracts may include cancellation fees or require compensation for costs already incurred by the supplier. In other cases, particularly if the cancellation is due to supplier's failure to meet terms, there may be no penalty. It's crucial to understand the specific terms outlined in your contract.
Q: Can a supplier refuse to cancel a purchase order?
Answer: A supplier can refuse to cancel a purchase order if the cancellation violates the terms of the contract. For example, if the contract doesn't allow for cancellation or if the cancellation notice is given too late. In such cases, it may be necessary to negotiate with the supplier or seek legal advice to resolve the situation.
Q: How can I avoid the need to cancel purchase orders in the future?
Answer: To avoid the need for cancelling purchase orders, thorough planning and clear communication are key. This includes accurately assessing your needs before placing an order, choosing reliable suppliers, having clear terms and conditions in your contracts, and maintaining open lines of communication with suppliers to address any issues promptly. Regular review and adjustment of procurement processes can also help minimize the chances of order cancellations.