Templates
Purchase order format with terms, free in Excel, Word and PDF
A purchase order tells a supplier exactly what to send, at what price, where and by when. Download the format with terms and conditions, fill it in, and send it before the goods are dispatched.
Free download, no sign-up
Filled with the sample shown. The Excel file has formulas for tax and totals.
In short
A purchase order is the buyer's written order to a supplier: items, quantities, agreed prices, delivery date and terms. The download here is free in Excel, Word and PDF, and in SimpleERP a purchase order becomes the supplier bill without retyping.
Harbor Supply Co.
Tax number 100 234 567
Purchase order
PO-2026-0014
Supplier: Allied Steel Supply
- MS sheet 1.2 mm500 kg
- Angle 25×25200 m
- Bolts and nuts40 set
What this document is for
A purchase order, or PO, is the first document in a purchase. You send it; the supplier delivers against it and bills you. When the bill arrives, you check it against the PO before paying, so a wrong price or a short delivery is caught before money leaves.
- It fixes the price before dispatch. Steel prices move weekly; the PO records the price you agreed today.
- It is what you check the bill against. Ordered 500 kg, billed 520 kg: the PO settles it.
- It tracks part deliveries. Each line shows ordered, billed and still to come.
What a purchase order must contain
No tax rule prescribes a PO format. These are the blocks a supplier needs to dispatch the right goods and bill them correctly.
- Your business details: name, billing address, tax number and a contact for the delivery.
- PO number and date, in one series, such as PO-2026-0014.
- Supplier details: name, address and tax number.
- Lines: description or grade, quantity, unit, price and tax rate.
- Totals: amount before tax, expected tax and the PO total.
- Delivery address, expected date and terms and conditions: payment days, inspection, rejection and freight.
How to fill the template
Put your header in once
Replace Harbor Supply Co. with your name, address and tax number, and save the file as your blank copy.
Number and date the PO
Use the next number in your PO series. Ask the supplier to quote it on their invoice.
Add the supplier
Name, address and tax number, copied from the supplier's own invoice or quotation.
Enter the lines with the agreed price
Give the grade and size, such as MS sheet 1.2 mm, so nothing is open to interpretation. The Excel file computes amount, tax and total with formulas.
Edit the terms and send it
The download carries sample terms for payment days, inspection on receipt, rejection of damaged goods and freight. Change them to yours, sign, and send the PDF.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| MS sheet 1.2 mm | 500 kg | $0.90 | $450.00 |
| Angle 25×25 | 200 m | $1.10 | $220.00 |
| Bolts and nuts | 40 set | $0.75 | $30.00 |
| Amount before tax | $700.00 | ||
| Tax at 20% | $140.00 | ||
| PO total | $840.00 |
Make it in SimpleERP instead
Raise the purchase order with the warehouse it should arrive at and the expected date. When the supplier's bill comes in, Convert to bill copies whatever is still open, and posting the bill receives the stock at cost.
- Purchase order to bill without retyping. Part deliveries are normal; each line shows ordered, billed and remaining.
- Price and tax rate fill from the product, at the rates set up for your country.
- Notes and terms print on the PO, so your standard terms go out every time.
- Posting the bill adds the stock to the warehouse, records the tax on the purchase and adds the amount to what you owe the supplier.
- The same bill cannot be entered twice. The supplier's bill number is checked first.
Illustration of stock on hand by warehouse at average cost, with a low-stock row highlighted and a movement ledger.
Fields
Every field on a purchase order, and why
Tax law prescribes the supplier's invoice (in the EU, article 226 of the VAT Directive), not the purchase order. The fields here are what customers, suppliers and auditors expect to see.
| Field | Required | Why |
|---|---|---|
| Buyer name, billing address and tax number | Good practice | The supplier puts your details on the invoice, which you need to reclaim the tax where your country allows it. |
| PO number and date | Good practice | The supplier quotes it on the bill so the two can be matched. |
| Supplier name, address and tax number | Good practice | Identifies who will bill you and charge the tax. |
| Description, quantity, unit and price per line | Good practice | The goods and prices the supplier's bill must match. |
| Amount before tax, tax rate and expected total | Good practice | Lets you check the bill's tax before paying. |
| Delivery address and expected date | Good practice | Tells the supplier which warehouse to send to and by when. |
| Terms and conditions | Good practice | Payment days, freight, inspection and rejection agreed in advance. |
| Authorised signature | Good practice | Shows the order was approved by someone who can commit the business. |
Source: No format is prescribed; good practice, verified 5 November 2026.
Common mistakes
Mistakes to avoid on a purchase order
- Ordering by a vague description such as "steel sheet" with no thickness or grade, then receiving the wrong material.
- Leaving the price blank to be filled by the supplier, which removes the reason for a PO.
- Missing your own tax number on the PO, so the supplier's invoice may go out without it.
- Paying the bill without matching it to the PO, so a quantity of 520 kg against 500 ordered goes through.
- Giving no delivery address when you run more than one warehouse, so goods land where they are not needed.
Honest limits
Honest limits
- A purchase order does not move stock or post to the books. The supplier bill does.
- No approval chain with spending limits on POs. Roles decide who can confirm or cancel an order.
- No shipping documents or e-invoices. Your supplier produces those for the dispatch.
Getting started
Start with your first invoice
Sign up with your email
Name, email and a password. No card for the seven-day trial.
Tell us about the business
Pick your country and type your tax number. Currency, tax rates, accounts, units, roles and numbering are set up for that country.
Add what you sell
Add your raw materials with unit, tax rate and purchase price, typed in or imported from a spreadsheet. Then raise the PO and send it.
Post your first invoice
Pick the customer, add lines and save. Your first tax invoice can be out within 10 minutes of signing up.
FAQ
Questions, answered
Does a purchase order include tax?
No tax is charged on a purchase order; it is not a tax document. Showing the tax rate and the expected total is still good practice, here $840.00 on $700.00 before tax, so the supplier's invoice can be checked against it.
Is a purchase order a legal requirement?
No. Tax law requires the supplier's invoice, not a purchase order. Many buyers, especially larger companies, will not pay a bill without a matching PO number, which is why suppliers ask for one.
What terms and conditions should a purchase order have?
At least payment days, delivery date and place, who pays freight, inspection on receipt and what happens to rejected or short goods. Keep them short and the same on every PO, so suppliers know them.
Can I use this format in Excel with formulas?
Yes. The Excel download computes each line amount, the tax and the PO total with formulas. The Word file carries the same layout with the terms and conditions for editing.
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