A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating the type, quantity, and agreed price for products or services. Once accepted by the supplier, it becomes a legally binding contract between the two parties.
Every purchase order should include: PO number for tracking, buyer and seller information, order date, delivery date, item descriptions with quantities, unit prices, total amount, payment terms, shipping terms, and any special instructions or terms and conditions.
Step 1: Fill in your company details and the supplier information.
Step 2: Assign a unique PO number for tracking.
Step 3: List all items with descriptions, quantities, and unit prices.
Step 4: Add shipping and delivery details.
Step 5: Specify payment terms and conditions.
Step 6: Review, approve, and send the PO to the supplier.
Step 2: Assign a unique PO number for tracking.
Step 3: List all items with descriptions, quantities, and unit prices.
Step 4: Add shipping and delivery details.
Step 5: Specify payment terms and conditions.
Step 6: Review, approve, and send the PO to the supplier.
Common mistakes include: missing PO numbers, unclear item descriptions, not specifying delivery dates, omitting payment terms, failing to get approval before sending, and not keeping copies for records. Always double-check every field before issuing.
Download our free bilingual Purchase Order templates available in PDF and Excel formats. They include auto-calculated totals, tax fields, and professional formatting ready for immediate use.