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Purchase order template

A purchase order turns "just send us the usual" into a document: what you are buying, at what price, delivered where, authorized by whom. It is the buyer’s half of the paper trail that keeps invoices honest.

Why buyers issue POs

A PO fixes prices before the vendor invoices, creates an approval step before money is committed, and gives your bookkeeper the document to match invoices against. When an invoice arrives that does not match its PO, that mismatch is money you did not lose.

The lines that matter

Item or SKU, description, quantity, unit price. Add the ship-to address (often different from billing), the requested delivery date, and shipping terms. State on the PO that invoices must reference the PO number - it trains vendors and speeds your own approval.

Authorization and the three-way match

The signature line is the point of the document: someone with authority approved this spend at this price. At payment time, accounting matches invoice to PO to delivery receipt - the classic three-way match that catches overbilling, substitutions, and short shipments.

Purchase order checklist

SectionWhat to includeWhy it helps
HeaderPO #, order date, needed-by dateThe number every later document cites
Vendor & ship-toSupplier and delivery addressesBilling and delivery often differ
LinesSKU, description, qty, unit priceFixes prices before the invoice
TermsPayment terms, ship via, FOBNo surprises on freight or timing
AuthorizationApprover signature and dateCommitted spend needs an owner

Downloadable templates

Every format computes: the PDF calculates as you type, Word recalculates with F9, and Excel updates live. For branded documents with online payments and automatic reminders, use Invoice My Clients.

Purchase order FAQ

Is a purchase order a contract?+

Once the vendor accepts it (by confirmation or by shipping), yes - the PO’s terms generally govern. That is why the details belong on the document, not in the email thread.

Do small businesses really need POs?+

The moment more than one person can commit spend, yes. A one-page PO is the cheapest spend-control system that exists.

What is the difference between a PO and an invoice?+

The PO comes from the buyer authorizing a purchase; the invoice comes from the seller requesting payment. Matching one against the other is how billing errors get caught.

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