Purchase Order Template
What is a purchase order?
A purchase order is the document a buyer issues to a vendor to request specific goods or services at a specific price, before any money changes hands. It spells out exactly what is being ordered, how many units, at what unit price, and when delivery is expected. Once the vendor accepts the order — usually by countersigning or confirming by email — it becomes a mutually agreed commitment: the buyer agrees to pay the stated amount, and the vendor agrees to deliver on the stated terms.
Purchase orders exist to remove ambiguity from business purchasing. Without one, an order can live entirely in an email thread or a phone call, which makes it easy to lose track of pricing, quantities or delivery dates. With a PO, both sides have a single reference document, and when the vendor’s invoice arrives, you can check it against the original order to confirm you’re being billed correctly.
You’ll typically need a purchase order when you’re buying inventory or raw materials from a supplier, ordering equipment or office supplies in bulk, commissioning work from a contractor, or any time your business wants a paper trail before spending money — especially once more than one person is involved in approving purchases. Freelancers and very small teams can often skip formal POs for one-off purchases, but they become useful the moment you’re managing recurring vendors or need to reconcile spending against a budget.
How to fill in this purchase order template
This template is organized into four sections. Work through them in order and you’ll have a complete, professional purchase order in a few minutes.
Parties. Start with the PO number — a unique identifier (e.g. PO-1001) that both you and the vendor can reference on invoices and shipments — and the date the order is issued. Then fill in your company’s name, address and contact details as the buyer, followed by the vendor’s company name, address and contact details. Keeping a sequential numbering scheme makes it far easier to track orders later, especially once you’re issuing more than a handful a month.
Line items. List each product or service on its own row: item name, a short description, quantity, unit price and the line total (quantity multiplied by unit price). Add or remove rows as needed — most purchase orders have anywhere from one to a dozen line items. Double-check your math here, since this table is what the vendor will match against their invoice.
Terms. State your payment terms (for example, “Net 30” meaning payment is due 30 days after the invoice date), the expected delivery date, and your preferred shipping method. Add the subtotal and total so the vendor can confirm the numbers match their pricing before they accept the order.
Signatures. Both the buyer and vendor should sign and date the order to confirm it’s accepted. A signed PO is what turns this from a request into an agreed commitment — keep a copy on file alongside the vendor’s eventual invoice for your own records.
Once it’s filled in, save a copy for your records, send it to the vendor, and keep it handy for when their invoice arrives so you can compare the two side by side.
Sample purchase order and other formats
This page doubles as a sample purchase order — every field is pre-labeled with placeholder text (vendor name, PO number, line items, terms) so you can see exactly what a completed order looks like before swapping in your own details. If you specifically need this purchase order as a Word document or an Excel spreadsheet with built-in total formulas, use the format-specific versions linked under Related templates below.
FAQ
What is a purchase order used for?
A purchase order (PO) is a document a buyer sends to a vendor to formally request goods or services at agreed prices and terms. Once the vendor accepts it, the PO becomes a binding record of what was ordered, how much it costs, and when it should arrive — useful for budgeting, approvals and matching against the vendor's invoice later.
Do I need a purchase order for every purchase?
Not always. POs matter most for recurring or higher-value purchases where you want a paper trail — inventory, equipment, contractor supplies. For small one-off buys, a receipt or invoice alone is usually enough. Many small businesses start issuing POs once they have more than one person approving spend.
What is the difference between a purchase order and an invoice?
A purchase order comes from the buyer before the sale, listing what they want to buy. An invoice comes from the vendor after the goods or services are delivered, requesting payment. Matching the two (PO, invoice and delivery receipt) is standard practice — it is often called "three-way matching" — to catch billing errors.
Is this purchase order template free to download?
Yes. Download the Word or PDF file instantly with no signup, no email address and no watermark. Edit it in Microsoft Word, Google Docs or any PDF editor and reuse it for as many purchase orders as you need.
Can I edit the Word file in Google Docs or LibreOffice?
Yes. The .docx file opens cleanly in Google Docs (upload it or open with Google Docs), LibreOffice Writer and Apple Pages, in addition to Microsoft Word. All formatting, including the line-items table, carries over.