Purchase Order Template
A purchase order is how a buyer tells a supplier what it wants, how many and at what price, before anything ships
Key Features
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What a purchase order is
A buyer uses a purchase order to place an order with a supplier. The PO states what is wanted, the quantities, the prices and the terms, and it goes out before anything is delivered. The supplier's invoice follows later and normally shows the PO number.
How a PO and an invoice fit together
Both cover the same purchase, seen from opposite sides. The buyer issues the PO first, to set out the order and the price. The supplier issues the invoice once the order has been filled, to ask for payment. With the PO number on both, the buyer can compare the invoice with the order line by line.
Fields a purchase order normally carries
- a title such as Purchase Order, a PO number and the order date
- the buyer's business and the supplier, each with an address
- every item or service, how many, the cost of each and the line amount
- the order total, with tax or shipping listed separately
- where to deliver and the date you'd like it
- payment terms and the name of the person who approved the order
Worked example
Sample figures only. PO-2207 orders 3 office chairs at $120.00 each (3 × $120.00 = $360.00) and 50 notebooks at $2.40 each (50 × $2.40 = $120.00), for a total of $360.00 + $120.00 = $480.00. The supplier's invoice quotes PO-2207 and bills 3 chairs and 60 notebooks: $360.00 + 60 × $2.40 = $360.00 + $144.00 = $504.00. Checking it against the PO shows 10 more notebooks than were ordered, a difference of $504.00 − $480.00 = $24.00, which the buyer can raise with the supplier before paying. Use your own figures; these are only an illustration.
Contract questions
Whether a purchase order binds either side, and from when, depends on what the PO says and on which law governs it, so this page gives no general answer. For your own orders, ask a lawyer or professional adviser.
What Billed's features page says
Purchase orders aren't listed on Billed's features page (checked October 31, 2026). For documents you send your own clients, see Billed's invoice software and estimating software pages.
What's included in this document template
| Purchase order | Invoice | |
|---|---|---|
| Written by | Buyer | Supplier |
| When | Before delivery | After the goods or services are supplied |
| Purpose | Orders goods or services at stated prices | Asks for payment |
| Reference | Its own PO number | Usually shows the PO number |
When this isn't for you
If you buy supplies only now and then, a short written order or email may be all you need. Consider a PO process when purchases are frequent, need approval, or have to be checked against invoices. If you already buy through an accounting or procurement system with its own PO tool, use that so orders stay linked to your records.
How To Create Invoices With Billed
Billed lets you create invoices and send them by email or link.
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Create Your Invoice
Choose an invoice template and add your logo, business details and payment terms.
Send It
Email the invoice or share its link.
Frequently Asked Questions
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