When should I use a purchase order?

Use purchase orders for significant purchases, recurring orders, or when you need formal documentation for accounting and approval processes. They help track spending, prevent unauthorized purchases, and provide audit trails.

What information must be on a purchase order?

Essential PO elements include: PO number, date, buyer and seller information, item descriptions, quantities, unit prices, total amount, delivery address, payment terms, and authorized signature.

Is a purchase order legally binding?

Yes, once accepted by the seller, a purchase order becomes a legally binding contract. Both parties are obligated to fulfill their commitments as outlined in the PO.

Can I modify a purchase order after sending it?

Yes, but modifications should be formally documented through a PO amendment or change order. Both parties must agree to and acknowledge any changes to the original purchase order.

Buyer Information

Company Name *

Address

Phone

Vendor Information

Vendor Name *

Address

Phone

PO Details

PO Number

Date

Required By

Currency

Shipping Address

Line Items

Item Description	Qty	Unit Price

Terms & Notes

Payment Terms

Special Instructions

Purchase Order Preview

PURCHASE ORDER

PO #: PO-001

Date: -

Required By: -

From (Buyer):

Your Company

To (Vendor):

Vendor Name

Ship To:

Same as buyer address

Item Description	Quantity	Unit Price	Total
No items added

Total Amount: $0.00

Payment Terms:

Net 30

Special Instructions:

Complete Guide to Purchase Orders

What is a Purchase Order?

A purchase order (PO) is an official commercial document issued by a buyer to a seller, indicating the types, quantities, and agreed-upon prices for products or services. When accepted by the seller, it forms a legally binding contract between the parties.

Why Use Purchase Orders?

Budget Control: Track and control company spending with formal approval processes
Legal Protection: Create binding agreements that protect both buyer and seller
Order Accuracy: Clearly specify exactly what is being ordered to avoid mistakes
Audit Trail: Maintain comprehensive records for accounting and compliance
Payment Terms: Establish clear terms for when and how payment will be made

Purchase Order Best Practices

Always include a unique PO number for tracking
Clearly specify delivery dates and locations
Include detailed item descriptions to avoid confusion
Establish payment terms upfront
Require vendor confirmation of PO acceptance
Keep copies of all POs for record-keeping
Use sequential PO numbering for easy tracking

PO Processing Workflow

Step 1: Creation - Department identifies need and creates purchase requisition
Step 2: Approval - Management reviews and approves based on budget and necessity
Step 3: Issuance - Approved PO is sent to vendor
Step 4: Confirmation - Vendor accepts PO, creating binding contract
Step 5: Fulfillment - Vendor delivers goods/services as specified
Step 6: Receipt - Buyer receives and inspects order
Step 7: Payment - Invoice is matched to PO and payment processed

Common PO Types

Standard PO: One-time order for specific items
Planned PO: Known items with scheduled delivery dates
Blanket PO: Long-term agreement for recurring purchases
Contract PO: Outline agreement without specific order details

Purchase Order Generator