A purchase order, often called a PO, records what a buyer is authorizing: supplier, items or services, quantities, prices, delivery, and terms. It gives the supplier a reference and helps the buyer control spending and match later invoices.
A template should support approval, not merely look formal. Define who can create and approve POs, how numbers are assigned, when changes require a revision, and how the final document is stored.
Key points
What to know at a glance
| Topic | What to check |
|---|---|
| Design the purchase order header | Unique PO number and issue date |
| Create item and total fields | Item or service description |
| Add delivery and commercial terms | Delivery date, place, and instructions |
| Control approval and matching | Authorized approver and date |
Design the purchase order header
Label the document “Purchase Order” and add a unique PO number, issue date, buyer details, supplier details, billing address, delivery address, and requester. Include contract, project, department, or budget codes used by the organization.
Use fields rather than free-form placement so required information is not missed. The supplier name should match the approved vendor record. Distinguish the delivery location from the address where the supplier sends invoices.
- Unique PO number and issue date
- Buyer and approved supplier details
- Billing and delivery addresses
- Requester, approver, project, and department
Create item and total fields
Use line items for description, supplier item code when relevant, quantity, unit, unit price, tax treatment, and total. Describe services with a scope or milestone instead of an unclear label. Attach specifications or a statement of work when the table cannot carry enough detail.
Show subtotal, discounts, freight, tax, and authorized total. If the price is an estimate or not-to-exceed amount, state that clearly. A supplier should not have to guess whether quantity or price can vary.
- Item or service description
- Quantity, unit, and agreed price
- Freight, discount, tax, and total
- Currency and price limitation
Add delivery and commercial terms
State requested delivery date, location, shipping method or agreed trade term where applicable, contact, and acceptance requirements. For services, use start and completion dates, milestones, or scheduled hours.
Reference the payment terms the supplier accepted, required invoice information, and the process for changes. A PO should not silently override a negotiated contract. When a master agreement exists, identify it and make the document hierarchy clear.
- Delivery date, place, and instructions
- Acceptance or inspection requirements
- Agreed payment terms
- Contract and change references
Control approval and matching
Create an approval area with names, roles, dates, and evidence. Never let users copy an old PO number or approval into a new order. Save revised versions and communicate changes to the supplier before delivery.
When the invoice arrives, match the supplier, PO, receipt or service approval, quantities, prices, tax, and total. Differences should be resolved rather than hidden. This three-way relationship between order, receipt, and invoice supports accurate payment.
- Authorized approver and date
- Controlled number sequence
- Revision history
- PO, receipt, and invoice matching
Official sources
These references support the regulatory information in this guide. Check the current page before making a decision.
- Federal Acquisition Regulation: Purchase Order DefinitionDefines a purchase order as an offer to buy supplies or services on specified terms and conditions.
- Federal Acquisition Regulation: Purchase Order ContentsRequires purchase orders to specify quantity or scope, delivery or performance timing, and inspection arrangements.
Frequently asked questions
Questions about how to make a purchase order template
Who creates a purchase order?
The buyer creates it to authorize a purchase. The supplier later references the PO on shipping documents and invoices when required.
Is a purchase order an invoice?
No. A PO is issued before purchase or delivery to authorize it; an invoice is issued by the supplier to request payment.
Can a spreadsheet be used for purchase orders?
Yes, when numbering, approvals, formulas, access, revisions, and final records are controlled. Larger teams may need a dedicated purchasing system.