Ready-to-Use Purchase Order Template for Business Orders
This ready-to-use purchase order template helps businesses document orders for goods or services in a clear and consistent format. It includes buyer and supplier information, item descriptions, quantities, unit prices, taxes, delivery details, payment terms, and signature fields to support accurate purchasing records.
A purchase order is a written document issued by a buyer to request goods or services from a supplier. It sets out the items required, agreed prices, quantities, delivery arrangements, and payment conditions. Using a clear purchase order template helps reduce misunderstandings and creates an auditable record of the transaction. It can be used by small businesses, purchasing departments, and independent professionals.
What a Purchase Order Is Used For
A purchase order, often called a PO, is normally sent before goods are delivered or services begin. Once accepted by the supplier, it can serve as evidence of the agreed commercial terms, subject to the applicable law and the parties' contract arrangements.
The document gives both parties a single reference number for communications, invoices, delivery notes, and internal accounting records. It also allows the buyer to monitor spending and ensure that deliveries match the original request.
Essential Information to Include
A reliable purchase order should identify the parties, state the order date, and include a unique purchase order number. It should describe each product or service precisely enough for the supplier to fulfil the order without needing clarification.
Buyer and Supplier Details
Include the legal or trading name, registered or business address, contact person, telephone number, and email address of both parties. Where relevant, add tax registration numbers or other business identification details.
Commercial Terms
State the currency, unit prices, applicable taxes, discounts, delivery charges, total amount, payment due date, and delivery location. If the order is subject to separate standard terms and conditions, identify them clearly and provide access to them.
| Document field | Purpose | Frequent error |
|---|---|---|
| Purchase order number | Provides a unique reference for tracking | Reusing an existing number |
| Item description | Defines exactly what is being ordered | Using vague descriptions |
| Quantity and unit price | Establishes the value of each line item | Omitting the unit of measure |
| Delivery date and address | Sets the fulfilment expectation | Leaving the delivery point unclear |
| Payment terms | States when and how payment is due | Failing to specify payment deadlines |
How to Complete the Template
Complete the form before committing the order to the supplier. Check that pricing, quantities, tax treatment, and delivery terms reflect the quote or agreement that was approved internally.
- Assign a unique purchase order number and enter the issue date.
- Enter the buyer's and supplier's complete contact details.
- List every item or service with its quantity, unit, and agreed price.
- Review the totals and terms, then send the signed or authorised order to the supplier.
Editable template
Document template
PURCHASE ORDER
Purchase Order No.: ____________________
Place: ____________________ Date: ____________________
BUYER
Business name: ____________________
Address: ____________________
Contact person: ____________________
Telephone / Email: ____________________
Tax or registration number: ____________________
SUPPLIER
Business name: ____________________
Address: ____________________
Contact person: ____________________
Telephone / Email: ____________________
Tax or registration number: ____________________
The Buyer hereby orders the following goods and/or services from the Supplier, subject to the terms stated below:
| Line | Description of goods or services | Quantity | Unit | Unit price | Tax | Line total |
|---|---|---|---|---|---|---|
| 1 | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ |
| 2 | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ |
| 3 | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ | ____________________ |
Currency: ____________________
Subtotal: ____________________
Tax: ____________________
Shipping / other charges: ____________________
TOTAL ORDER VALUE: ____________________
Delivery address: ____________________
Required delivery date: ____________________
Payment terms: ____________________
Additional instructions: ____________________
- The Supplier shall provide the goods and/or services described in this purchase order in accordance with the stated specifications, quantities, and prices.
- The Supplier shall notify the Buyer promptly of any anticipated delay, unavailability, price difference, or proposed substitution before fulfilment.
- Delivery shall take place at the delivery address stated above unless the parties agree otherwise in writing.
- Payment shall be made in accordance with the payment terms stated in this purchase order, subject to receipt and acceptance of the relevant goods, services, and invoice.
- Any amendment to this purchase order must be confirmed in writing by an authorised representative of the Buyer.
Authorised for the Buyer: ____________________
Name and title: ____________________
Date: ____________________
Accepted by the Supplier: ____________________
Name and title: ____________________
Date: ____________________
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Checks Before Sending a Purchase Order
Before issuing the order, compare it against the supplier's quotation, proposal, or agreed price list. Confirm that the person approving the purchase has the authority to commit the business.
- Verify the supplier's legal name and billing details.
- Confirm product codes, specifications, and quantities.
- Check the currency and treatment of sales tax or VAT.
- State the expected delivery date and delivery address.
- Confirm payment terms, including any agreed deposit.
Keep a copy of the purchase order, the supplier's acceptance, and related delivery documents together under the same reference number.
Common Mistakes and Good Practice
Common problems include issuing an order without a defined delivery deadline, using a general description instead of technical specifications, or overlooking shipping and tax charges. These omissions can lead to disputes about scope, price, or timing.
Good practice is to use sequential order numbers, retain written approvals, and promptly notify the supplier of any correction. If changes are needed after acceptance, issue a revised order or written amendment that clearly identifies the original document.
Record Keeping and Acceptance
Keep the purchase order with quotations, correspondence, delivery records, invoices, and proof of payment. These records can support stock management, expense control, tax reporting, and resolution of discrepancies.
A supplier may accept a purchase order expressly in writing or by conduct, such as shipping the ordered goods. The legal effect of an order and its terms can vary by jurisdiction, industry practice, and the underlying agreement between the parties.
Frequently Asked Questions
Is a purchase order the same as an invoice?
No. A purchase order is issued by the buyer to request goods or services, while an invoice is usually issued by the supplier to request payment after supplying them.
Can a purchase order be changed after it is sent?
It can be changed if the supplier agrees. The buyer should document the change in writing and refer to the original purchase order number.
Does a purchase order need to be signed?
A signature is not always legally required, but approval or signature procedures can help demonstrate authority and agreement. Requirements depend on the contract terms and the law that applies.