What a purchase order includes
- The heading "Purchase order", a PO number and the date.
- Your business name, address and tax number, as the buyer.
- The supplier’s name and address.
- Each item with description, quantity, unit and agreed rate.
- Tax, the total, and the delivery date and address.
- Payment terms and any conditions, such as quality checks or penalties for delay.
How to make one
- Enter your business details, then the supplier.
- Add the items, quantities and rates. Set the "Delivery by" date and a delivery address if it is different.
- Download the PO as a PDF or Word file and send it to the supplier.
Questions
What is the difference between a purchase order and an invoice?
The buyer sends a purchase order to ask for goods at agreed prices. The supplier sends an invoice afterwards to ask for payment. The PO number is usually quoted on the invoice.
Is a purchase order legally binding?
Generally it becomes a binding contract once the supplier accepts it, but the rules depend on your country and your terms.
Can I add a separate delivery address?
Yes. Add a "Ship to" address and it is printed with the supplier’s details.