What Is a Purchase Order? How to Make a PO (Free Template)
A purchase order (PO) is the buyer’s written order to a supplier: what you want, how many, at what price, and when. It stops arguments later about what was ordered, and it lets you check every invoice before you pay it.
Quote, purchase order, invoice: the order of documents
| Document | Who sends it | When | Purpose |
|---|---|---|---|
| Quotation | Supplier | Before the order | Offers a price |
| Purchase order | Buyer | To place the order | Confirms what is ordered |
| Invoice | Supplier | After delivery | Asks for payment |
| Receipt | Supplier | After payment | Proves payment |
Make each one free: quotation generator, purchase order generator, invoice generator and receipt generator.
What to put on a purchase order
- PO number — unique, e.g. PO-2026-0042. The supplier quotes it on the invoice.
- Date and required delivery date.
- Your business details and the supplier’s details.
- Ship-to address if different from your office.
- Line items: description or SKU, quantity, unit price, line total.
- Subtotal, tax, shipping and total.
- Payment terms — e.g. Net 30, 50% advance.
- Terms and conditions — returns, quality, late delivery.
- Authorised signature.
Example
| Item | Qty | Unit price | Total |
|---|---|---|---|
| Kraft mailer boxes 10×8×4 in | 500 | $0.62 | $310.00 |
| Thank-you cards, printed | 500 | $0.09 | $45.00 |
| Shipping | $25.00 | ||
| Total | $380.00 |
How to number purchase orders
Use one simple, never-repeating sequence: PO-YEAR-NUMBER (PO-2026-0001, PO-2026-0002…). Never reuse a number, even for a cancelled order — mark it cancelled instead. The generator remembers your last number and suggests the next one.
Matching before you pay (3-way match)
Before paying a supplier, check three things agree: the PO (what you ordered), the delivery note (what arrived) and the invoice (what you are charged). If 480 boxes arrived but the invoice says 500, you pay for 480. This simple habit stops overpayments and duplicate invoices.
Make a PO in two minutes
Open the purchase order generator, add your logo, the supplier and your items, and download a PDF. It runs in your browser — nothing is uploaded — and it is free with no sign-up.
Frequently asked questions
What is a purchase order?
A purchase order (PO) is a document a buyer sends to a supplier to order goods or services. It lists the items, quantities, prices, delivery date and payment terms. Once the supplier accepts it, it becomes a binding agreement.
What is the difference between a purchase order and an invoice?
The buyer sends the purchase order before delivery to place the order. The supplier sends the invoice after delivery to ask for payment, usually quoting the PO number.
Do small businesses need purchase orders?
They are not required by law, but they help: you know exactly what you ordered and at what price, and you can match each invoice to a PO before paying it.
