WorkbamiSales & purchasing
Purchase Order Template: Free Download, Example and How to Fill It In
A purchase order (PO) is the document a buyer sends to a supplier to say exactly what it wants to buy, how many, at what price, and when and where it should arrive. Ordering by phone or chat feels faster, but when the delivery is late or the invoice does not match, the PO is what both sides go back to.
This page gives you a free purchase order template in Excel and Word, a field-by-field guide, a filled-in example with totals, a step-by-step ordering process and the mistakes that cause most invoice disputes.
What is a purchase order?
A purchase order is a commercial document issued by the buyer. It lists the items or services, quantities, agreed prices, delivery date and address, and payment terms. Once the supplier accepts the PO, in writing or by shipping the goods, it usually forms a binding contract on those terms, so it deserves the same care as any other agreement.
Inside the company, a PO is also a control. It is created only after the purchase has been approved against a budget, and when the goods arrive the accounts team runs a three-way match: the purchase order, the delivery note or goods receipt, and the supplier's invoice must agree on quantities and prices before anything is paid. This simple rule prevents double payments, price creep and orders nobody approved.
When do you need a purchase order?
- After comparing quotes, to confirm the order with the chosen supplier
- For recurring purchases of materials, parts or office supplies
- When you outsource manufacturing, printing or other custom work
- When your finance team requires a PO number on every supplier invoice
- Whenever the price, delivery date or specification could later be disputed
How to fill in the purchase order template
The downloadable files contain exactly these fields. Fill them so that the supplier's warehouse could ship the order from the PO alone, without calling you.
Order details
| Field | What to write | Example |
|---|---|---|
| PO number | A unique number from your own sequence. Ask the supplier to quote it on the invoice. | PO-2026-1031 |
| Order date | The date you issue the PO. | October 31, 2026 |
| Buyer | Company name, billing address, contact person, email for invoices. | Northwind Studio LLC, Accounts Payable, [email protected] |
| Supplier | Legal name, address and the sales contact who sent the quote. | Brightline Office Furniture, Dana Lee |
| Ship to and delivery date | Exact delivery address, receiving hours and the latest acceptable date. | 1200 Main St, Suite 400, Austin TX, by Nov 14 |
| Payment terms | When and how you pay, e.g. Net 30 from invoice date. | Net 30, ACH transfer |
Line items
| Field | What to write | Example |
|---|---|---|
| Item and description | Product name, model number, size or color, matching the supplier's quote. | Ergonomic task chair, mesh back, black |
| Quantity and unit price | State the unit (each, box, pack) and the price per unit before tax. | 6 × $249.00 |
| Amount | Quantity × unit price. Sales tax, shipping and discounts go below the line items. | $1,494.00 |
Terms and approval
| Field | What to write | Example |
|---|---|---|
| Shipping and tax | Who pays freight, and whether sales tax applies or you are exempt. | Free shipping; sales tax 8.25% |
| Special terms | Inspection, returns, warranty, partial deliveries, reference to your standard terms. | Damaged items replaced within 5 business days |
| Authorized by | Name, title and signature or approval record of the person allowed to commit the spend. | Maria Gomez, Operations Manager |
Purchase order example
A small design studio is equipping six new desks. Prices are before tax; sales tax is calculated once on the subtotal, as is usual in the United States.
| PO number | PO-2026-1031 |
|---|---|
| Supplier | Brightline Office Furniture |
| Delivery | By November 14, 2026, 1200 Main St, Suite 400, Austin TX |
| Payment terms | Net 30, ACH |
| Order total | $2,880.47 (subtotal $2,660.94 + 8.25% sales tax $219.53) |
Order items
| Item | Description | Qty | Unit price (USD) | Amount |
|---|---|---|---|---|
| Ergonomic task chair | Mesh back, adjustable arms, black | 6 | 249 | $1,494.00 |
| Monitor arm | Single, clamp mount, up to 32 in | 6 | 64.5 | $387.00 |
| USB-C docking station | Dual display, 100 W charging | 6 | 129.99 | $779.94 |
| Subtotal | $2,660.94 |
Subtotal $2,660.94 + sales tax 8.25% ($219.53) = $2,880.47. Shipping is free under the supplier's quote Q-5521; check the invoice against these numbers before paying.
Free download
Free, no sign-up. Opens in Excel, Google Sheets, Numbers, Word, Google Docs and LibreOffice.
Open the downloaded file in Nobami, our web office, to edit it right away.
How to create and send a purchase order
- Get and compare quotes. For anything significant, ask two or three suppliers. Compare delivery time, shipping, warranty and payment terms, not only price.
- Get internal approval. Raise a purchase request with the budget line and amount, and issue the PO only after it is approved.
- Copy item names and units from the quote. Use the supplier's product codes and units so the warehouse picks the right thing, and reference the quote number on the PO.
- Check the math. Quantity × unit price for every line, then subtotal, tax, shipping and total. The Excel template does the sums for you.
- Send the PO and get it acknowledged. Email a PDF and ask the supplier to confirm acceptance and the delivery date in writing. File the confirmation with the PO.
- Receive, match and pay. When goods arrive, record what was received, then pay only when the PO, receipt and invoice agree.
Legal and tax notes
In the United States, sales of goods are governed by Article 2 of the Uniform Commercial Code as adopted by each state. Under UCC § 2-201, a contract for the sale of goods for $500 or more is generally not enforceable unless there is some writing signed by the party against whom enforcement is sought, which is one reason businesses insist on written, approved POs. Your company's standard terms and conditions are often attached to or referenced on the PO.
Sales tax is set by states and local jurisdictions, so the rate on the example (8.25%) is only an illustration. If you buy for resale or are tax-exempt, keep the exemption certificate on file with the supplier. Outside the US, VAT or GST usually applies, and suppliers must issue invoices that meet local rules.
Keep POs with the matching receipts and invoices for as long as your accounting and tax record-keeping rules require.
Sources
- Cornell Law School LII: UCC § 2-201 Formal Requirements; Statute of Frauds (checked October 31, 2026)
General information, not legal or tax advice. Contract and tax rules differ by state and country; check with your accountant or counsel.
Common purchase order mistakes
- Ordering by phone first and issuing the PO afterwards, so the budget check never happens
- Using internal nicknames instead of the supplier's product codes and units
- Leaving out the delivery address, receiving hours or the latest acceptable date
- Not stating whether prices include tax and shipping
- Treating the PO as accepted before the supplier confirms it
- Paying an invoice that does not match the PO and the goods actually received
Purchase order FAQ
What is the difference between a quote, a purchase order and an invoice?
A quote is the supplier's offer. A purchase order is the buyer's confirmation of what it is ordering on those terms. An invoice is the supplier's request for payment after delivery. All three should share the same items, quantities and prices.
Is a purchase order legally binding?
Once the supplier accepts it, a PO usually forms a contract on its terms. Acceptance can be a signed acknowledgment, an email, or simply shipping the goods. Local law decides the details.
Who creates the purchase order number?
The buyer. Use a simple unique sequence, such as PO-year-number, and ask suppliers to quote it on every invoice so accounts payable can match them.
Can I change or cancel a purchase order?
Send a revised PO or a written cancellation that references the original number, and get the supplier's confirmation. Custom-made goods may carry cancellation costs.
Can I use this template in Google Sheets or Google Docs?
Yes. Upload the .xlsx to Google Sheets or the .docx to Google Docs; the totals use standard SUM formulas.