Free Purchase Order Generator

A purchase order (PO) is a document a buyer sends to a vendor to order goods or services. It sets out what is being bought, the quantity, the agreed price, the delivery date and place, and the terms. It gives both sides a written record of the order and lets your accounts team check the vendor's invoice against what was actually ordered.

A PO is an offer to buy. It becomes binding once the vendor accepts it - by signing or acknowledging it, or by starting to supply on its terms. Until then, you can usually amend or withdraw it.

The documents follow each other. The vendor sends a quotation with their price. You, the buyer, send a purchase order to accept that price and place the order - quoting the vendor's quotation number. After delivering, the vendor sends an invoice requesting payment, quoting your PO number.

Many businesses go one step further with three-way matching: before paying, they check that the purchase order, the delivery note or goods received note (GRN), and the vendor's invoice all agree on items, quantities and prices. It catches short deliveries, wrong rates and duplicate bills before money goes out.

A complete purchase order leaves the vendor nothing to guess:

• Your business name, billing address and GSTIN, and the vendor's details
• A unique PO number and date, and the vendor's quotation reference if any
• Each item with description, HSN/SAC code, quantity, unit and agreed rate
• Taxes, discounts and the total order value
• The 'Ship to' address and the required delivery date
• Payment terms, delivery terms, and any inspection, warranty or penalty clauses
• A request to quote the PO number on the invoice and delivery documents