What is a Purchase Order?
A Purchase Order (PO) is a document a buyer sends to a supplier to formally order goods or services, stating exactly what is wanted, the quantity, the agreed price and the delivery terms. Once the supplier accepts it, the PO becomes a binding order and creates a clear paper trail for both sides.
Why use purchase orders
POs keep purchasing organised, prevent misunderstandings over what was ordered, and make bookkeeping and stock control far easier.
What it should contain
- Buyer and supplier details.
- PO number and date.
- Description, quantity and unit price of each item.
- Total amount payable and any tax.
- Delivery and payment terms.
Create your Purchase Order
Answer a few questions and download a clean, professional PO. Related: Sale of Goods Agreement.
FAQ
Is a purchase order legally binding?
It becomes binding once the supplier accepts it, forming a contract on the stated terms.