Free Purchase Order Template (Word, Excel & PDF)
A purchase order template lets a buyer formally order goods or services from a vendor. It states what is being bought, in what quantity, at what price, and when it is needed. Once the vendor accepts it, the purchase order becomes a binding commitment on both sides.
On this page you get a free purchase order template three ways. Download the Word, Excel, or PDF file below, or use the online generator to raise one in about a minute. The Excel version adds up the totals for you. Further down you will find what every purchase order must include, how the PO process works, how a PO differs from an invoice, and answers to the questions buyers ask most.
Everything here is free. There is no signup and no watermark.
Download the purchase order template
Choose the format that suits you. The Word file is editable for adding your company details. The Excel file multiplies quantity by unit price and sums the order total automatically. The PDF is print-ready.
Raise a purchase order online with this purchase order template
Enter your company details, the vendor, line items, quantities, and prices. The generator totals everything up and produces a clean PDF you can download immediately. It works on phones, tablets, and desktops.
What is a purchase order
A purchase order (PO) is a commercial document a buyer sends to a vendor to authorize a purchase. It spells out exactly what is being ordered so there is no ambiguity later. When the vendor accepts the PO, it typically becomes a legally binding agreement to supply the stated goods or services at the stated price.
Purchase orders protect both sides. The buyer gets written confirmation of what was ordered and at what price. The vendor gets a firm commitment before allocating stock or scheduling work. The PO number then travels through the whole transaction: the vendor quotes it on their invoice, and both sides use it to match documents. The U.S. Small Business Administration covers purchasing controls for small firms: see the U.S. Small Business Administration guide.
Small businesses often skip POs and order by email or phone. That works until a dispute arises about what was agreed. A one-page purchase order takes a minute to raise and prevents most ordering disagreements.
What your purchase order template must include
A purchase order missing key details causes the vendor to come back with questions, delaying the order. Include all nine of these:
- Your company (buyer) name, address, and contact details.
- Vendor (supplier) name and address.
- Unique PO number and issue date.
- Delivery address if different from your billing address, plus the required delivery date.
- Itemized list of goods or services with descriptions, quantities, and unit prices.
- Subtotal, tax or shipping if applicable, and the total order value.
- Payment terms, such as net 30 or payment on delivery.
- Authorized signature or approver name, showing the order is approved.
- Terms and conditions reference, or key terms printed on the PO.
Purchase order template format
A standard layout looks like this:
PURCHASE ORDER No. PO-0042 Buyer: [Your Company Name, Address] Vendor: [Vendor Name, Address] Date: [Issue date] | Delivery by: [Delivery date] Deliver to: [Delivery address] Item | Qty | Unit price | Total [Item 1] | [Qty] | [Price] | [Total] [Item 2] | [Qty] | [Price] | [Total] Subtotal: [Amount] Tax/Shipping: [Amount] TOTAL ORDER: [Amount] Payment terms: [Terms] Authorized by: [Name + Signature]
Number every PO in sequence. The vendor will quote this number on their invoice, which is how both sides match the paperwork.
How the purchase order process works
The PO sits in the middle of the standard procurement cycle:
- Need identified. A department or project needs goods or services.
- Quote requested. The buyer asks vendors for pricing.
- Vendor selected. The buyer compares quotes and picks a supplier.
- PO raised. The buyer sends the purchase order authorizing the purchase.
- Vendor accepts. The vendor confirms they will supply as ordered.
- Goods delivered. The vendor ships or performs the service.
- Invoice received. The vendor bills, quoting the PO number.
- Three-way match. Buyer matches the PO, the delivery note, and the invoice before paying.
- Payment made. Per the agreed payment terms.
Steps 4 through 8 are where the purchase order earns its keep. Without it, matching deliveries to invoices becomes guesswork.
Purchase order vs invoice
These two sit on opposite sides of the transaction:
| Purchase order | Invoice | |
|---|---|---|
| Issued by | Buyer to vendor | Vendor to buyer |
| Purpose | Authorizes the purchase | Requests payment |
| Timing | Before delivery | After delivery |
| Legal effect | Binding offer once accepted | Payment obligation |
| References | PO number (created here) | Quotes the PO number |
| Next step | Vendor delivers | Buyer pays |
The PO starts the commitment. The invoice finishes it. Keep both filed under the same PO number.
When to use this purchase order template
Regular suppliers. Standing orders for stock, materials, or consumables go faster with a template.
Project purchasing. Equipment, subcontractors, and services for a specific job stay controlled with POs.
Multi-approver businesses. When spending needs sign-off, the PO is the approval document.
Inventory control. Matching POs to deliveries keeps stock records accurate.
Audit readiness. Numbered POs create the paper trail auditors expect.
Mistakes that cause problems
No PO number. Without a unique number, matching invoices to orders becomes manual detective work. Number every PO.
Vague descriptions. “Miscellaneous supplies” tells the vendor nothing. Describe each item specifically.
Missing delivery date. The vendor cannot prioritize without a date. Always state when you need it.
Skipping approval. An unauthorized PO is just a wish list. Get the required sign-off before sending.
No terms and conditions. Returns, warranties, and late delivery need rules. Reference your standard terms on every PO.
Purchase order template FAQs
Is this purchase order template really free?
Yes. Download the Word, Excel, or PDF file free, or raise as many purchase orders as you need with the online generator. No signup, no payment, no watermark, and no download limits.
What is a PO in business?
PO stands for purchase order: a document a buyer sends a vendor to formally authorize a purchase. It lists what is being bought, quantities, prices, and delivery terms.
Who issues a purchase order, the buyer or the seller?
The buyer issues the PO to the vendor. The vendor then sends an invoice quoting the PO number, which lets both sides match the documents.
What is the difference between a purchase order and an invoice?
A purchase order comes first, from buyer to vendor, authorizing the purchase. An invoice comes later, from vendor to buyer, requesting payment for what was delivered.
Is a purchase order legally binding?
It generally becomes binding once the vendor accepts it. Before acceptance it is an offer. Include clear terms and check local contract law for your situation.
Do small businesses need purchase orders?
They help at any size. Even a two-person business benefits from written order records when disputes arise. The template makes raising one take about a minute.
What is a three-way match?
The buyer compares three documents before paying: the purchase order, the delivery receipt, and the vendor invoice. All three must agree on items, quantities, and prices.
Can I change a purchase order after sending it?
Yes, by issuing a PO amendment or revised PO referencing the original number. Get the vendor to confirm the change in writing.
How long should I keep purchase orders?
Keep them with the related invoices for your full tax record retention period, typically six to seven years. File by PO number for easy retrieval.
What comes after a purchase order?
The vendor delivers, then invoices quoting your PO number. You match the delivery against the PO and invoice, then pay per the agreed terms.
Related templates
- Purchase Order Generator: raise one online in about a minute
- Invoice Generator: vendors bill against your PO
- Quote Template: vendors quote before you order
- Commercial Invoice Template: for international POs