There are some instances when you’ll need to cancel a purchase order. It could be because they couldn’t complete the order on time, or you’re short on finances. To cancel a purchase order, you’ll have to write a formal letter to your supplier. If you don’t know where to start with your letter, looking at a cancellation letter sample for purchase order can be helpful.
As a buyer, you have a right to cancel your order as long as it’s due to valid reasons. Writing a cancellation letter doesn’t have to be complicated. In this article, we’ll guide you through the steps needed to write a good and professional letter.
What to Include in a Purchase Order Cancellation Letter
When canceling a purchase order, you must include all the necessary information to avoid miscommunication with your recipient. Here’s a list of things you can include in your letter:
- Your full name or the name of the customer
- When the order was placed
- The order or tracking number of the items you want to cancel
- The list of items that you want to cancel
- Include on the list the size, color, quantity, and inventory number of the items being canceled
- How soon you want the cancellation to be processed
- Why do you want to cancel the order
- Request for a written confirmation that the order has been canceled
- Purchase orders, invoices, and receipts for proof
How to Write a Cancellation Letter?
Cite the reason for the cancellation
For a business or supplier to accept your cancellation request, you’ll have to tell them why you want to cancel your order. It could be because the management wanted to go in a different direction or a mistake in the inventory.
Make sure to use the standard letter format and formal salutations in your letter. It has to look professional since you’ll be sending it to your client or another company.
Proofread your letter
As with any letter, it’s necessary to proofread it before sending it. Make sure that it’s free from any errors. Be it in grammar, spelling, or the information you provided.
Cancellation Letter Sample for Purchase Order
Here are some general sample letter templates you can use for different situations.
Example 1: Due to a mistake in inventory
Dear [Name of Business],
As a result of a mistake in inventory, I have placed a large order of [Product Names] on [Date of Order]. As I have been informed today, the items are already available in the storeroom, so please cancel my purchase request.
I would like to compensate you for any loss that may occur as a result of the order cancellation. My order number is [Order Number]. I would also like to request a formal confirmation letter from you regarding this order cancellation. Thank you.
Example 2: Due to Financial Issues
[Name of Recipient],
I want to request that you cancel my purchase order [Order Number] placed on [Date of order]. Unfortunately, due to unexpected proceedings, our company is facing financial difficulties. And to overcome any legal concerns, we must pay a severe fine. Therefore, we ask you to cancel the order. I hope it’s not too late to make this request.
Please let us know as soon as possible if you can process this cancellation request. We hope to hear positive feedback from you. And we’re sorry for the inconvenience this may have caused you.
Thank you very much.
Example 3: General Letter Template for Cancellation
Dear [Name of Recipient or Business],
This letter is about the [Product Name] we purchased through your salesperson on [Date] with the [order number]. We have decided to cancel the order due to [reason for cancellation].
Please consider the order canceled under this circumstance.
We ask you to refund the advance payments we sent you as soon as possible. Thank you.
When writing a letter to cancel a purchase order, you want to use a professional tone. Include all the necessary information about the order in your letter, and proofread it before sending it. If you’re unsure how to start, you can always look at a cancellation letter sample for purchase order in this article for reference.
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