A purchase order is how you tell a supplier exactly what you want to buy, at what price, before they invoice you. Download a free purchase order template below in Word, Excel, Google Sheets or PDF, or create one in seconds with Billdu.
You do not need to spend time going through all the purchase order templates available on the internet. We have created a free forms that you can easily edit or download to your computer. Select your preferred format and start using the template now.
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's the buyer's official request to purchase - and it comes before the invoice. Once the supplier accepts your PO, it becomes a binding agreement covering the items, quantities and prices you both agreed. Each PO carries a unique number, so both sides can track the order from request through to delivery and payment.
Purchase order vs invoice
You (the buyer) issue a purchase order to request goods; your supplier issues an invoice to request payment once they've been delivered. The PO comes first and sets the terms; the invoice comes last and bills against them. They usually share the same PO number so they can be matched.
Types of purchase order
– Standard - a one-off order where you know the items, quantities, price and delivery.
– Planned - items, quantities and price are set, but the delivery date or location is confirmed later.
– Blanket - a standing agreement to buy over time, often at a negotiated price, up to an agreed limit.
– Contract - a formal contract of terms that individual purchase orders then reference.
What a purchase order should include
– A unique purchase order number; your and your supplier's details; order, delivery date & location; item descriptions, quantities & unit prices; the total, discounts & taxes; payment terms; billing address if different.
A purchase order sits at the start of the procure-to-pay process:
1. You raise a purchase order and send it to your supplier.
2. The supplier accepts it - at which point it becomes binding.
3. The goods or services are delivered (often with a delivery note).
4. The supplier sends an invoice that references your PO number.
5. You check the invoice against the PO and pay.
Because every document references the same PO number, you can match the order, the delivery and the invoice at a glance - which keeps your expenses clean and makes approvals faster.
The buyer. You send it to your supplier to order goods or services; the supplier later sends an invoice back to you.
Not on its own - it becomes binding once your supplier accepts it.
A purchase order requests goods (buyer, first); an invoice requests payment (supplier, last). They usually share a PO number.
A quote is the supplier's proposed price before you commit; a purchase order is your commitment to buy at the agreed terms.
Standard, Planned, Blanket and Contract.
A blank template can't number your orders, total them, or tell you which have been fulfilled. Billdu creates purchase orders in a couple of taps, numbers them sequentially, and keeps every order in one dashboard - so you always know what's been ordered, received and paid.
Mobile and web app
Create purchase orders on the go and keep every document in one place. 7-day free trial.
Automatic numbering & tracking
Billdu numbers your POs for you and tracks their status.
Dashboard and documents
Purchase orders, invoices, estimates and quotes in one dashboard.
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