Purchase Order Template
Standard PO form with vendor info, itemized quantities, unit prices, and auto-calculating totals.
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Scope and reference context
Keep original invoices, receipts and approvals. A worksheet records your assumptions and entries; it does not verify delivery, collect payment, enforce a contract or synchronize inventory.
Primary reading context, not an endorsement or evidence that the linked organization reviewed this tool. No independent professional sign-off is claimed.
About the Purchase Order Template
A purchase order is a buyer-generated document that authorizes a purchase from a specific vendor. Unlike an invoice, which the seller creates to request payment, the PO comes from you, the buyer, and becomes a binding contract once the supplier accepts it. It records exactly what you agreed to buy, at what price, in what quantity, and under what payment terms, giving both sides a reference to check the eventual shipment and invoice against.
This template captures the fields a supplier and your own bookkeeping need: a unique PO number, vendor contact block, delivery date, payment terms, and an itemized table of descriptions, quantities, and unit prices. The tool extends each line and sums them into a single order total so you know your committed spend before you send the order. Using POs turns ad-hoc buying into a controllable, auditable process.
How the Purchase Order Template works
Each line's Total equals Quantity multiplied by Unit Price. The order Total is the sum of all line totals. Unlike the invoice tool, this purchase order does not add tax or a discount; it shows the committed goods value so you can match it against the vendor's later invoice. The PO number is the key everyone uses to reconcile the order, the packing slip, and the invoice in a three-way match.
The vendor information block, delivery date, and terms (for example Net 30) are free-text fields that travel with the numbers. Terms define when payment is due after the goods arrive, and the delivery date sets the expectation you will hold the supplier to. Because the total reflects only quantities times unit prices, add any freight or handling as its own line item if the vendor charges it, so your recorded commitment matches what you will actually be billed.
Worked example
Suppose you order office furniture. Line one is 4 office chairs at $150 each, extending to $600. Line two is 2 standing desks at $300 each, extending to $600. The order total is $1,200. You set PO number PO-1001, a delivery date two weeks out, and terms of Net 30, meaning payment is due 30 days after the furniture is delivered. When the vendor's invoice arrives, you confirm it also reads $1,200 against PO-1001 before approving payment.
Tips & common mistakes
- Issue the PO before the vendor ships; a PO created after the fact loses its control value and cannot prevent unauthorized spending.
- Use a consistent numbering scheme (PO-1001, PO-1002) so every order is traceable and no number is duplicated.
- Add freight, handling, or setup charges as separate line items so your committed total matches the invoice the vendor will send.
- Perform a three-way match at receipt: compare the PO, the packing slip, and the invoice before releasing payment to catch overbilling or short shipments.
- Spell out delivery date and payment terms explicitly; 'ASAP' and vague terms are the two biggest sources of vendor disputes.
Purchase Order Template: frequently asked questions
What is the difference between a purchase order and an invoice?
You, the buyer, create a purchase order to authorize and describe an order before it is filled. The seller creates an invoice afterward to request payment. The PO number links the two so accounting can confirm the invoice matches what was ordered.
Does this template add sales tax?
No. The purchase order shows quantities times unit prices only, representing the committed goods value. Tax and freight, if the vendor charges them, appear on the vendor's invoice; add freight as its own line if you want the PO total to match exactly.
Why does every PO need a unique number?
The PO number is the reference that ties together the order, the shipment, and the invoice during a three-way match. Duplicate or missing numbers make it impossible to reconcile purchases and open the door to double payments.
What does 'Net 30' mean in the terms field?
Net 30 means the full payment is due 30 days after the goods are received or the invoice is dated, depending on your agreement. Other common terms include Net 15, Net 60, or 2/10 Net 30, which offers a 2 percent discount for paying within 10 days.
Is an accepted purchase order legally binding?
Yes. Once the vendor accepts your PO, it forms a contract covering the items, prices, quantities, and terms listed. That is why accuracy on quantities and unit prices matters before you send it.