Free Purchase Order Generator

How to create a purchase order

Set the PO number and date. Use a unique number, such as PO-0001, and today’s date. Add the delivery date you need and the requester’s name.
Enter your company as buyer. Add the legal name, billing address and tax number so the supplier can invoice you correctly.
Add the vendor. Enter the supplier’s name, address and contact. Add the ship-to address if goods go to a different site.
List items and prices. For each item enter the SKU or description, quantity and agreed unit price. Tax and shipping are calculated automatically.
State terms. Add payment terms, delivery method, and conditions such as inspection and returns.
Sign, export and send. Add the authoriser’s signature, download the PDF and email it to the vendor. Ask for an order confirmation.

What a purchase order is

A purchase order (PO) is a document a buyer sends to a seller to order goods or services. It lists what is wanted, in what quantity, at what price and when. Once the seller accepts it, the PO usually becomes a contract on the terms shown. That is why a PO is more than paperwork: it records exactly what both sides agreed.

Purchase orders are common in B2B trading, wholesale, construction, manufacturing, education and any organisation where the person who orders is not the person who pays. They give finance a trail, let managers set spending limits, and help the supplier know an order is real.

If you are the supplier, you receive the PO and quote its number on your delivery note and invoice. If you are the buyer, you check delivery against the PO and pay against the invoice.

Where the PO fits in the buying process

Request or quote. The buyer asks for prices, or the seller sends a quote.
Purchase order. The buyer issues the PO, quoting the agreed prices.
Order confirmation. The seller accepts, ideally in writing, with a delivery date.
Delivery. Goods arrive with a delivery note; the buyer checks them against the PO.
Invoice. The seller sends an invoice that quotes the PO number.
Matching and payment. The buyer matches the PO, delivery note and invoice (a “three-way match”), then pays.

Many larger buyers will reject an invoice with no PO number, so a good PO and a good invoice are two halves of one process.

What a purchase order should include

A unique PO number and the date of issue.
Buyer’s legal name, billing address, and the contact who placed the order.
Vendor’s name, address and contact details.
Ship-to address, if different from the billing address, and a delivery or required-by date.
Item descriptions with SKU or part numbers, quantities, unit prices and line totals.
Tax, shipping and any discount, with the order total.
Payment terms, such as Net 30, and the currency.
Delivery method and who bears freight and insurance, using Incoterms for international orders.
Conditions: inspection period, returns, warranty, and cancellation terms.
An authorised signature or approval, especially where spending limits apply.

Worked example

A café orders packaging from a supplier. Prices exclude tax; 20% VAT is added; shipping is free over a threshold.

SKU	Description	Qty	Unit price	Amount
CUP-12	12 oz paper cups (box of 1,000)	4	£38.00	£152.00
LID-12	Lids to match (box of 1,000)	4	£21.50	£86.00
NAP-01	Napkins (case of 5,000)	2	£29.00	£58.00
Subtotal				£296.00
VAT 20%				£59.20
Order total				£355.20

The supplier’s invoice should quote this PO number and show the same lines. If the invoice differs, the buyer can see exactly where.

PO versus quote, invoice and pro forma

Document	Sent by	Purpose
Quote	Seller	Offers a price for specified goods or work.
Purchase order	Buyer	Orders the goods or work at the agreed price.
Pro forma invoice	Seller	A preliminary bill, often for prepayment or customs; not a tax invoice.
Invoice	Seller	Requests payment after or on supply; usually the tax document.
Receipt	Seller	Confirms payment was received.

Common purchase order mistakes

Verbal orders. If it is not written, disputes about price or quantity are hard to resolve.
No PO number on the invoice. The most common reason invoices stall in accounts payable.
Missing delivery date. “ASAP” is not a date. Write the day the goods are needed.
Unclear tax status. State whether prices include tax and whether the buyer will give a tax-exemption certificate.
Reusing PO numbers. Each order should have its own number so matching works.
No approval. If your company has spending limits, get sign-off before sending the PO.

Glossary

Purchase order (PO): A buyer’s written order to a seller, listing items, quantities and prices.
Vendor: The supplier who receives the order.
Ship-to: The delivery address for goods.
Incoterms: Standard international trade terms that say who pays for freight, insurance and risk.
Three-way match: A check of the PO, delivery note and invoice before payment.
Net 30: Payment due 30 days after the invoice date.

Check official guidance. We could not fully confirm these points against an official page when we last reviewed, so please verify them before relying on them:

Contract formation and tax-exemption certificate rules differ by country and state. Check with a legal or tax adviser for large orders.

Frequently asked questions

Is a purchase order a legal contract?

Once the seller accepts it, a PO generally forms a contract on its terms, alongside any conditions of sale. The exact effect depends on local law and on whether other terms were agreed. For high-value orders, ask a legal adviser to review your standard terms.

Who sends a purchase order, the buyer or the seller?

The buyer. The seller replies with an order confirmation and later an invoice that quotes the PO number.

What is the difference between a PO and an invoice?

A PO is the buyer’s order. An invoice is the seller’s request for payment. A PO comes first and the invoice should refer to it.

How do I number purchase orders?

Use a unique, sequential number such as PO-0001. Some companies add the year or department. The editor increments the number each time you start a new PO, and the invoice number generator can help you plan a scheme.

Do small businesses need purchase orders?

Not always, but they help when you order from suppliers regularly, have several people ordering, or need a record for your accountant. A simple PO also protects you if a price or quantity is disputed.

Can I include shipping and tax?

Yes. Add shipping and tax lines, or switch to tax-inclusive prices. If your business is tax-exempt, state the exemption number in the notes.

What is a ship-to address?

The place goods should be delivered, which may differ from the billing address. Turn on the ship-to block and fill it in.

What is a three-way match?

It is a check, often done by accounts payable, that compares the purchase order, the delivery note or goods receipt, and the supplier’s invoice before paying.

Can I use a PO for services, not goods?

Yes. Describe the service, rate and expected hours or deliverables, and set the payment terms. Many agencies and contractors work under POs.

Where is my data saved?

In your browser only. The tool does not upload your PO. Export JSON or use the share link to copy it to another device.

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