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Purchase Order Template

A purchase order (PO) is the document a buyer sends to a supplier to order goods or services at an agreed price. It comes before the invoice and is issued by the other side: the buyer writes the PO, the supplier delivers and then sends an invoice that quotes the PO number. A PO is not an invoice and does not ask for payment. In many legal systems, including the US Uniform Commercial Code for goods, an order is an offer that becomes a contract once the supplier accepts it, by confirming or by shipping. Use this template when you buy from a supplier who asks for a PO, when your own business needs a written approval before money is committed, or when you want a clear record of what was ordered to check deliveries and invoices against. The download is an editable HTML file with fields for the PO number and date, buyer and supplier, delivery address and date, a table of items with quantities and unit prices, totals, payment terms, invoicing instructions and an approval line. Fill it in your browser, then print it or save it as PDF and send it to the supplier.

Preview this editable document

Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.

What This Template Includes

  • Purchase order number
  • Order date
  • Buyer
  • Supplier
  • Supplier quote or reference number
  • Delivery address
  • Delivery date
  • Shipping method and delivery terms
  • Payment terms
  • Invoice-to address and instructions (quote this PO number)
  • Requested by and approved by

How to fill in this Purchase Order

  1. Download the template. It opens as an editable HTML file in your browser.
  2. Replace each bracketed field with your details. Totals are not calculated for you, so check the arithmetic.
  3. Print it or save it as a PDF from your browser. InvoiceQuickly does not create or store this document type.

Payment terms and the purchase order

A purchase order states the payment terms the buyer has agreed with the supplier, for example net 30 from receipt of a correct invoice. Copy the terms from the supplier's quote or your framework agreement rather than inventing new ones, because a PO with different terms from the quote can turn into a counter-offer instead of an acceptance. Say when the payment clock starts (on delivery, on acceptance of the goods or on receipt of the invoice) and that invoices must quote the PO number. If the order is paid partly in advance, state the deposit amount and what triggers the balance.

Tax and the purchase order

A purchase order is not a tax document. Sales tax, VAT or GST is charged on the supplier's invoice, under the supplier's registration and the rules where the supply takes place, so the tax line on a PO is only an estimate for budgeting. If the purchase is exempt, for example goods bought for resale in a US state that taxes sales, the buyer normally claims the exemption by giving the supplier the certificate that state requires; a note on the PO alone is usually not enough. For imports, the commercial invoice and customs documents carry the values used for duty, not the PO. This is general information, not legal or tax advice; check with your tax authority or an adviser.

Industry context (2026)

Purchase orders matter most when the buyer is a larger organisation with an accounts payable process. US federal procurement is a well documented example: the Federal Acquisition Regulation (FAR 32.905) says a proper invoice must include the contract or order number and line item number, a description, quantity and price of what was supplied, and payment terms, and that invoice payments must be supported by a receiving report or other documentation showing the goods or services were accepted. That is a three-way match written into regulation. For sales of goods between businesses, the Uniform Commercial Code (section 2-206) treats an order for prompt shipment as an offer the seller can accept by promising to ship or by shipping. Buyers also use different kinds of PO: a standard PO for a one-off order, a blanket PO that sets prices and a spending limit for repeated orders over a period, and a contract PO that refers to a framework agreement. This template is a standard PO; for blanket orders, add the validity period and the maximum value.

Worked example

Worked example (illustrative figures). On 26 October 2026 Maple Street Bakery LLC sends purchase order PO-2026-0147 to its packaging supplier, quoting the supplier's quote Q-5520. Line 1: 2,000 kraft cake boxes, 10 in, at $0.42 = $840.00. Line 2: 5,000 paper bags, medium, at $0.11 = $550.00. Line 3: 20 rolls of printed labels at $14.50 = $290.00. Subtotal $1,680.00, delivery charge $45.00, PO total $1,725.00; any sales tax will be charged on the supplier's invoice. Delivery to the bakery by 6 November 2026; payment terms net 30 from receipt of a correct invoice quoting PO-2026-0147; approved by the operations manager. The goods arrive on 5 November and the receiving check counts 1,900 boxes, not 2,000. The supplier's invoice INV-3381 bills the full order, $1,725.00. The bakery's three-way match lines up the PO (2,000 boxes at $0.42), the receiving record (1,900 boxes) and the invoice (2,000 boxes) and flags 100 boxes × $0.42 = $42.00. The bakery tells the supplier, which either ships the missing boxes or issues a credit note for $42.00. If it is a credit note, the amount payable is $1,725.00 − $42.00 = $1,683.00, and the bakery's remittance advice lists INV-3381 less the credit note number.

Common mistakes to avoid

Sending the PO after the goods arrive

A PO raised after the purchase (sometimes called an after-the-fact PO) gives no control over price or quantity. Raise and approve the PO before the supplier commits to delivery.

Vague line descriptions

Without part numbers, sizes or a defined service scope, the receiving team cannot tell whether the right thing arrived, and the invoice cannot be matched. Copy the description from the supplier's quote.

Prices that differ from the quote

If the PO shows a lower unit price than the supplier quoted, the supplier may treat it as a counter-offer or invoice at its own price anyway. Agree the price first and quote the reference on the PO.

Paying an invoice without checking the delivery

Matching only the PO and the invoice misses short deliveries. For goods, record what was received and compare it with both documents before approving payment.

Treating the PO as the invoice

A PO does not show that anything was supplied and carries no tax charge. Pay against the supplier's invoice, matched to the PO, not against the PO itself.

Invoicing Tips

  • 1Give every PO a unique number from one sequence, such as PO-2026-0147, and never reuse one. Suppliers quote it on delivery notes and invoices, so a duplicate breaks matching.
  • 2Describe each item precisely: supplier part number, size, colour or service scope, quantity and unit. 'Boxes x 2,000' is not enough to check a delivery against.
  • 3Use the unit prices from the supplier's quote and quote its reference. A price the supplier never offered invites a dispute at invoice time.
  • 4Write the delivery address and the invoice-to address separately if goods go to a site and invoices go to head office.
  • 5Get the internal approval before you send the PO, not after. A PO sent without approval commits the business anyway once the supplier accepts it.
  • 6Ask the supplier to confirm the PO in writing, with the delivery date, before they ship.
  • 7When a change is needed after sending, issue a revised PO with the same number and a revision mark (for example PO-2026-0147 rev 1) and ask the supplier to confirm it.

Related Resources

Frequently Asked Questions

What is a purchase order?

A purchase order is a document a buyer sends to a supplier listing the goods or services it wants to buy, the quantities, the agreed prices, the delivery details and the payment terms. Once the supplier accepts it, it records the agreement both sides will check the delivery and the invoice against.

What is the difference between a purchase order and an invoice?

The buyer issues the purchase order before anything is supplied, to place the order. The supplier issues the invoice after supplying, to ask for payment. The invoice should quote the PO number so the buyer can match the two.

Is a purchase order legally binding?

It usually becomes binding when the supplier accepts it. Under the US Uniform Commercial Code, for example, an order for goods for prompt shipment can be accepted by a prompt promise to ship or by shipping the goods. If the supplier changes the terms when accepting, the rules on which terms apply differ by country, so read the confirmation carefully.

What is a PO number?

It is the buyer's unique reference for one order. The supplier puts it on order confirmations, delivery notes and invoices, and the buyer uses it to find the approved order when the invoice arrives. Some buyers return invoices that do not show a valid PO number, so suppliers should check before sending.

What is three-way matching?

Three-way matching is a check accounts payable teams make before paying: they compare the purchase order (what was ordered and at what price), the receiving record (what actually arrived) and the supplier's invoice (what is being charged). If quantities or prices differ, the invoice is held until the difference is explained or corrected. Two-way matching compares only the PO and the invoice, and is common for services where there is no delivery to receive.

Can I change a purchase order after sending it?

Yes, but do it in writing. Issue a revised PO with the same number and a revision mark, show what changed, and ask the supplier to confirm. If the supplier has already shipped or started work, the change is a renegotiation, not an edit.

Can InvoiceQuickly create purchase orders?

No. InvoiceQuickly is for the supplier side: it creates invoices, and on Pro also estimates and credit notes. Use the editable HTML template on this page to write a PO. If you are a supplier and your customer sends you a PO, InvoiceQuickly has no dedicated PO field, so type the customer's PO number in the invoice notes or the line description so it prints on the PDF.