Free Purchase Order Template
A purchase order (PO) is issued by a buyer to formally order goods or services from a supplier, before an invoice exists.
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Nothing you type here is uploaded anywhere — your invoice is built entirely in your browser.
A purchase order (PO) is issued by a buyer to formally order goods or services from a supplier, before an invoice exists. It sets expectations — quantities, agreed pricing, delivery timeline — that the supplier’s later invoice should match, which is exactly why POs are standard practice for larger or recurring business purchases.
What to include on a purchase order
- PO number
- Buyer and supplier details
- Itemized list of goods/services ordered with quantities and agreed price
- Requested delivery date
- Shipping address (if different from billing)
- Total order value
How to create a purchase order
- Use your business as the “from” party — a PO is issued by the buyer.
- Enter the supplier (vendor) details in the “bill to” area.
- Give the PO a unique number — suppliers will quote it on their invoice.
- List items with SKU or part number, description, quantity and agreed unit price.
- Add delivery details — ship-to address, requested delivery date and shipping method — in the notes.
- State payment terms agreed with the supplier (e.g. Net 30 from invoice).
- Get it approved internally if your business requires sign-off before sending.
Purchase order vs invoice
| Purchase order | Invoice | |
|---|---|---|
| Issued by | Buyer | Seller |
| When | Before goods/services are supplied | After they’re supplied |
| Purpose | Authorises and commits to a purchase | Requests payment |
| Reference | PO number | Invoice number, quoting the PO number |
In three-way matching, accounts payable checks the PO, the delivery receipt and the supplier’s invoice agree before paying — the main reason suppliers are asked to include PO numbers.
Types of purchase orders
- Standard PO — a one-off purchase with known items, prices and delivery.
- Blanket PO — covers repeated purchases over a period at agreed prices, with deliveries called off as needed.
- Planned PO — items and prices known, delivery dates scheduled later.
- Contract PO — sets terms with a supplier; individual POs reference it.
Benefits of using purchase orders
- Controls spending — only approved purchases go ahead.
- Creates a clear record of what was ordered, at what price.
- Helps resolve disputes about quantities or prices.
- Speeds up paying suppliers, because invoices can be matched to POs.
- Supports budgeting, inventory planning and audits.
Frequently asked questions
What is a purchase order?
A document a buyer sends to a supplier to order goods or services, listing items, quantities, agreed prices, delivery details and payment terms. Once accepted, it commits both sides to the purchase.
Is a purchase order legally binding?
Generally, once the supplier accepts a purchase order it can form a binding contract on the terms stated. Include clear terms and conditions for important orders.
Who issues a purchase order — buyer or seller?
The buyer issues the purchase order; the seller later issues an invoice that references the PO number.