Purchase Order Template: Format, Fields and Sample
A purchase order template and format with every field explained, a worked PO sample, how POs link to quotes and invoices, and how to set one up in Excel or Word.
Quick answer: A purchase order template is the buyer's ordering document. A standard purchase order format includes a unique PO number, the date, buyer and supplier details, the delivery address, an item table with quantities and agreed unit prices, tax and total, the required delivery date, payment terms, a reference to the supplier's quote and an authorised signature.
If you buy from suppliers regularly, a consistent purchase order template keeps spending under control and gives you something to check invoices against. If you are the supplier, understanding the PO helps you invoice in a way the buyer's accounts team will pay without queries. This guide covers both sides, with a filled-in sample and Excel setup.
One thing to be clear about up front: our invoice generator creates invoices, not purchase orders. The document heading is fixed as "Invoice" and cannot be renamed, so it is not a PO tool. What it does have is a dedicated PO number field, so suppliers can reference the buyer's PO on their invoice.
Where a purchase order fits
A typical B2B purchase moves through these documents in order:
- Quotation from the supplier, with prices and validity. See our quotation format guide.
- Purchase order from the buyer, accepting those prices and setting delivery terms.
- Delivery note or delivery challan travelling with the goods, signed on receipt.
- Invoice from the supplier, quoting the PO number.
- Payment, often with a remittance advice listing what was paid.
For a detailed comparison of the two main documents, read invoice vs purchase order.
Purchase order format: fields to include
| Field | What to enter |
|---|---|
| PO number | Unique, sequential, e.g. PO-2026-0217 |
| PO date | The date the order is issued |
| Buyer details | Company name, billing address, contact, tax ID if relevant |
| Supplier details | Name, address, supplier account number if you use one |
| Ship-to address | Where goods should be delivered, if different from billing |
| Quote reference | The supplier's quotation number and date |
| Item table | Item code, description, quantity, unit, unit price, line total |
| Subtotal, tax, shipping, total | Exactly as agreed |
| Delivery date and method | Required-by date, shipping terms (and Incoterms for imports) |
| Payment terms | e.g. Net 30 from receipt of a valid invoice |
| Invoice instructions | "Quote PO number on all invoices; send to ap@..." |
| Authorisation | Name, title and signature of the approver |
Many buyers also add a cost centre or budget code for internal tracking and a line of standard terms and conditions, or a link to them.
Purchase order sample (worked example)
A US office manager orders supplies following the supplier's quote. Sales tax at 6% applies to the goods; in this example, the shipping charge is not taxed. Whether shipping is taxable varies by state.
Purchase Order PO-2026-0217 · Date: 23 October 2026
Buyer: Ridgeview Accounting LLC · Supplier: Metro Office Supply Co.
Quote ref: Q-88412 dated 20 October 2026 · Deliver by: 30 October 2026 · Terms: Net 30
| Item | Description | Qty | Unit price | Line total |
|---|---|---|---|---|
| PPR-A4-80 | Copy paper, 500-sheet ream | 50 | $6.20 | $310.00 |
| TNR-HP-58X | Toner cartridge, high yield | 10 | $68.50 | $685.00 |
| Subtotal | $995.00 | |||
| Sales tax 6% | $59.70 | |||
| Shipping | $25.00 | |||
| PO total | $1,079.70 | |||
The maths: 50 × 6.20 = 310 and 10 × 68.50 = 685, a subtotal of 995. Tax at 6% is 59.70, plus 25 shipping, for a total of 1,079.70. When Metro invoices, the invoice should show the same lines and prices and quote PO-2026-0217.
How to make a purchase order template in Excel
- Rows 1–10: your company header, "PURCHASE ORDER", PO number, date, supplier and ship-to blocks.
- Row 12 headings: Item, Description, Qty, Unit price, Line total (columns A–E).
- Rows 13–30: lines. In E13 enter
=C13*D13and copy down. - Subtotal (E32):
=SUM(E13:E30) - Tax rate in D33, tax in E33:
=ROUND(E32*D33,2) - Shipping in E34; total in E35:
=E32+E33+E34 - Below: delivery date, terms, invoice instructions and signature line.
For numbering, keep a PO log on a second sheet (PO number, date, supplier, total, status) and take the next number from it, so two people never issue the same one. Our Excel invoice guide uses the same layout techniques, and the number generator can suggest a PO numbering pattern too.
In Word, build the same structure with tables; just remember Word will not recalculate totals reliably, so do the sums in a spreadsheet first.
Can I use the invoice generator for a purchase order?
Not properly. The generator's layout is built for invoices: the heading reads "Invoice", the parties are labelled "From" and "Bill to", and the dates are "Issued" and "Due". None of those labels can be changed, so a document made there would be an invoice with the wrong roles, which could confuse a supplier's accounts team. Use a PO template in Excel, Word or your purchasing software instead.
Where the generator does help is on the supplier's side of the same transaction. When you receive a PO, enter its number in the PO number field, copy the line descriptions and prices exactly, and the buyer can match your invoice in seconds. Our article on the PO number on an invoice explains why a missing number is one of the most common reasons invoices sit unpaid.
Purchase order best practice for small businesses
- Set a PO threshold. Many small firms require a PO only above a certain amount, so routine small purchases are not slowed down.
- Get the quote first. Reference it on the PO so prices are locked.
- Check deliveries against the PO. Note shortages on the delivery note before signing.
- Three-way match before paying. PO, delivery note and invoice should agree on quantities and prices.
- Close POs once complete. Mark them fulfilled in your log so nothing is invoiced twice.
If you are getting organised on the buying side, our explainer on accounts payable vs accounts receivable shows where POs sit in your books.
What suppliers should check when a PO arrives
If you are on the receiving end of a purchase order, check it before you deliver anything. Errors are much easier to fix before the goods leave than after the invoice is rejected.
- Prices and quantities match your quotation, including any discount you agreed.
- The legal entity on the PO is the one you will invoice, and the billing address is correct.
- Delivery date and address are achievable.
- Payment terms are what you agreed. Some POs quietly specify longer terms than your quote.
- Invoice instructions: where to send invoices, and any reference they must show.
If anything is wrong, ask for an amended PO in writing before you deliver.
Purchase order vs quotation vs invoice
| Quotation | Purchase order | Invoice | |
|---|---|---|---|
| Issued by | Seller | Buyer | Seller |
| Purpose | Offers a price | Places an order at that price | Requests payment |
| Timing | Before the order | When the buyer commits | After delivery, or as agreed |
| Reference it carries | Quote number and validity | PO number and quote reference | Invoice number and PO number |
| Accounting effect | None | Commits budget; usually no entry in a small business's books | Creates a receivable for the seller and a payable for the buyer |
Keeping the three numbers on each other's documents is what makes the trail easy to follow. A buyer who sees "Quote Q-88412, PO-2026-0217" on an invoice can approve it in moments.
Types of purchase order
Most small businesses only need the standard type, but it helps to know the others when a larger customer mentions them:
- Standard PO: a one-off order for specific items, quantities, prices and a delivery date. The example above is a standard PO.
- Blanket PO: covers repeated purchases from one supplier over a period, often up to a total value and at agreed prices. Deliveries are called off against it, and suppliers invoice each delivery quoting the blanket PO number.
- Planned PO: sets out items and prices, with delivery dates confirmed later through releases.
- Contract PO: sets the terms and conditions for a relationship without listing specific items; separate POs refer to it.
If a customer issues you a blanket PO with a value limit, keep a running total of what you have invoiced against it. Once the limit is reached, further invoices are often blocked until they raise a new PO, so ask for one before you get there.
Next step
Buyers: copy the field list above into an Excel sheet, add the formulas, and start a PO log. Suppliers: next time a customer sends a PO, open the Corporate template in the generator, put their PO number in the PO field, mirror their line items, and download a PDF invoice they can approve without a query.
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 at agreed prices and terms. It authorises the purchase internally and, once the supplier accepts it, usually forms the contract. The supplier later sends an invoice quoting the PO number.
Who creates a purchase order, the buyer or the seller?
The buyer creates the purchase order. The seller creates the quotation before it and the invoice after it. If a customer asks you, as the seller, for a PO, they really mean they will send one to you.
What should a purchase order include?
A PO number, date, buyer and supplier details, delivery address, a list of items with quantities and agreed prices, tax, the total, delivery date, payment terms and an authorised signature. Many buyers also add a reference to the supplier's quotation and their own cost centre.
Is a purchase order legally binding?
A purchase order is usually an offer to buy. When the supplier accepts it, in writing or by delivering, it typically becomes a binding contract on the PO's terms. The exact rules depend on the country and on any master agreement between the parties.
What is a three-way match?
A three-way match is an accounts payable check that compares the purchase order, the goods received note or delivery note, and the supplier's invoice. Payment is approved only when quantities and prices agree across all three.
Can a supplier send an invoice without a purchase order?
Yes, unless the buyer requires one. Many small businesses buy without POs. Larger companies often have a 'no PO, no pay' policy, though, and their accounts payable team will return an invoice that does not quote a valid PO number. If you are the supplier, ask before starting work whether a PO is needed, and wait for the number so your invoice can be matched and paid.
What happens if the invoice amount does not match the purchase order?
The buyer's accounts team will usually put the invoice on hold until the difference is explained. Some companies allow a small tolerance, but anything larger needs action: either the buyer issues an amended PO for the extra quantity or price, or the supplier issues a corrected invoice or credit note. Agree any changes in writing before delivery so the documents still match at the end.
Can a purchase order be changed or cancelled after it is sent?
Usually by agreement. Before the supplier accepts it, a buyer can normally withdraw or amend a PO freely. After acceptance, changes are normally made with a written change order or amended PO that both sides accept, and cancellation may involve costs for work already done, depending on the PO terms and local law. Give the amended PO a revision number so everyone works from the latest version.
What is the difference between a purchase order and a sales order?
They describe the same deal from opposite sides. The buyer issues a purchase order to place the order with the supplier. The supplier then often creates a sales order in its own system to confirm the order internally, plan stock and schedule delivery. A sales order may be sent back to the buyer as an order confirmation, quoting the buyer's PO number.
How do I invoice a partial delivery against a purchase order?
Invoice only what you have delivered, quote the same PO number, and show the quantity shipped against the PO line. Note in the invoice what remains outstanding, for example '60 of 100 units delivered; balance to follow'. Each later delivery gets its own invoice quoting the PO. Check that the total invoiced never exceeds the PO value, because over-billed invoices are usually blocked.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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