How to Write a Purchase Order: Fields, Examples, and Free Template
A purchase order (PO) is a document the buyer sends to a supplier to formally request goods or services. It lists what you want, how much, and the agreed price. Once accepted, it becomes a binding contract.
What to include in a purchase order
| # | Field | What to write |
|---|---|---|
| 1 | PO number | A unique number for tracking (e.g., PO-2026-0042) |
| 2 | Date | The date you issue the PO |
| 3 | Buyer info | Your company name, address, and contact person |
| 4 | Supplier info | Supplier company name, address, and contact |
| 5 | Ship-to address | Where the goods should be delivered (if different from buyer) |
| 6 | Item details | Description, SKU/part number, quantity, unit price |
| 7 | Total amount | Subtotal, tax, shipping, and grand total |
| 8 | Payment terms | Net 30, Net 60, due on receipt, etc. |
| 9 | Delivery date | When you need the goods |
| 10 | Notes | Special instructions, packaging requirements |
Purchase order vs. invoice
| Purchase order | Invoice | |
|---|---|---|
| Sent by | Buyer to supplier | Supplier to buyer |
| When | Before delivery | After delivery |
| Purpose | Request goods/services | Request payment |
| Binding? | Yes, once accepted | Yes (records the debt) |
Step-by-step: writing a purchase order
- Get a quote or estimate from the supplier. Agree on price, quantity, and delivery timeline.
- Assign a PO number. Use a sequential numbering system so you can track orders easily.
- Fill in buyer and supplier details. Include contact names so communication is clear.
- List each item with description, quantity, unit price, and line total.
- Add payment and delivery terms. Be specific: "Net 30 from invoice date" is better than "on account."
- Review and send. Email the PO as a PDF and ask the supplier to confirm receipt.
Create one now: free purchase order maker
Tips for better purchase orders
- Reference the supplier's quote number on the PO so they can match it quickly.
- State your cancellation policy in the notes (e.g., "PO may be cancelled if not confirmed within 5 business days").
- Keep a copy for your records. Match it against the invoice when it arrives.
- For recurring orders, create a blanket PO covering a period (e.g., quarterly) to reduce paperwork.
Frequently asked questions
Is a purchase order legally binding?
A purchase order becomes a legally binding contract once the supplier accepts it. Until then, it is an offer to buy.
What is the difference between a purchase order and an invoice?
A purchase order is sent by the buyer to request goods. An invoice is sent by the supplier to request payment after delivery. The PO comes first; the invoice comes after.
Do small businesses need purchase orders?
They are not legally required, but POs create a clear paper trail. They help avoid disputes about what was ordered, at what price, and when.
Related tools
- Purchase order maker — free, printable
- Invoice generator
- Estimate maker
- Invoice vs. receipt vs. estimate
Last reviewed: October 2026. General information, not legal or tax advice.