Purchase Order Template
A purchase order is the document a buyer sends to a supplier to authorize a purchase before any goods or services change hands
No credit card required. Cancel anytime.
Key Features
Everything you need in a professional document template.
Why purchase orders matter
A PO turns a verbal or email agreement into a documented commitment with agreed quantities, prices, and delivery terms. That protects both sides: the supplier knows exactly what was authorized, and the buyer has a record to check the eventual invoice against. When the invoice arrives, it should match the PO line for line — this is the heart of 'two-way matching' that finance teams use to catch overbilling before it is paid.
For growing businesses, POs also create a spending control. Requiring a PO number before a purchase means costs are approved up front rather than discovered later on a surprise invoice.
Purchase order vs. invoice
They describe the same transaction from opposite ends. The buyer issues the purchase order to say 'please supply this, at this price.' The supplier issues the invoice to say 'here is what I supplied, please pay.' The PO comes first and is authorized by the buyer; the invoice comes after delivery and is issued by the seller. A well-run process links them with a shared PO number.
What to include on a purchase order
Include a unique PO number, the order date, your business (the buyer) details, and the supplier's details. List each item or service with description, quantity, unit price, and line total. State the agreed delivery date and location, payment terms, and any shipping or tax details. Leaving the PO number visible is essential, because the supplier will quote it on their invoice so both documents reconcile.
How to create a purchase order with Billed
Set up your business details once, then build the PO with itemized lines and clear totals. When the supplier later sends an invoice referencing your PO number, you can check it against the original authorization in seconds.
Skip the Templates — Create Documents Online
Why download templates when you can create professional documents online with Billed? Customize, send, and get paid — all in one place.
No credit card required. Cancel anytime.
What's included in this document template
| Purchase order | Invoice | |
|---|---|---|
| Created by | Buyer | Supplier |
| Timing | Before delivery | After delivery |
| Purpose | Authorize the purchase | Request payment |
| Binding when | Supplier accepts it | Issued for delivered goods |
How two-way matching prevents overbilling. We traced the procure-to-pay path and found the single most effective control is requiring the supplier's invoice to carry the PO number. With a PO on file, finance compares three things before paying — quantities, unit prices, and totals — against what was authorized. Discrepancies surface before money leaves the account rather than after. Businesses that pay invoices without a matching PO have no documented baseline to dispute against, which is where most unnoticed overcharges hide.
When this isn't for you
If you are a solo operator buying occasional supplies, a formal PO process can be overhead you do not need — a clear written order or email may suffice. POs earn their place when purchasing is recurring, involves approvals, or needs to be checked against incoming invoices. If you run procurement inside an ERP, use its PO module so the commitment posts to your ledger automatically rather than living in a standalone template.
How To Create Your Document With Billed
Get started in minutes with three simple steps.
Sign Up Free
Create your free Billed account in seconds. No credit card required.
Customize Template
Choose and customize your document template with your business details.
Send & Get Paid
Send your professional document to clients and get paid faster.
Frequently Asked Questions
Common questions about this document template.
Related Templates
Explore more templates for your business.
Related Articles
Learn more about creating professional documents for your business.
Ready To Create This Document?
Join thousands of businesses using Billed to create professional documents and get paid faster.
No credit card required. Cancel anytime.