ClauseryFree purchase order (PO) template (Word)
A buyer-issued document authorising a purchase from a supplier — listing items, quantities, prices, delivery date, shipping address and payment terms; when accepted by the seller it forms a binding contract.
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A purchase order (PO) is issued by a buyer to a vendor to place an order. It lists items, quantities, prices, delivery date, shipping address, payment terms and PO number. When the vendor accepts the PO it becomes a binding contract.
POs create a clear audit trail for both sides, help with inventory/expense tracking, and ensure agreed pricing is in writing before goods are delivered.
What to include#
- Buyer and vendor. Buyer company, contact, billing and shipping addresses; vendor name, contact and address; PO number and PO date.
- Items ordered. SKU/description of each item, quantity, unit price and line total; include tax, shipping and discounts.
- Delivery terms. Required delivery date, shipping method/address, Incoterms if international, and any packaging or inspection requirements.
- Payment terms. Payment terms (net 30, 50% deposit, COD), accepted payment methods, and any early-payment discount.
- Authorisation. Name and signature of the person authorised to approve the purchase; budget/cost centre if applicable.
How to fill it in#
Step 1: Agree pricing first
Confirm quotes/prices with the vendor before issuing the PO — the PO locks in price.
Step 2: Assign a unique PO number
Use sequential numbering for your records and vendor invoice matching.
Step 3: List items clearly
SKU, quantity, unit of measure, unit price; reference any vendor quotes by number.
Step 4: Set delivery expectations
Date, location and FOB/shipping terms; specify who pays shipping and risk of loss.
Step 5: Send and get acceptance
Email the PO; wait for written acceptance/acknowledgement before expecting shipment.
Related templates and guides
Questions
Is a PO a binding contract?
Once accepted by the vendor yes; before acceptance it is just an offer to buy.
Do small businesses need POs?
Recommended for anything beyond trivial purchases — they prevent disputes over price, quantity and delivery.
Can I change a PO after it is issued?
With a change order agreed by both sides — issue an amended PO referencing the original number.
PO vs invoice?
PO is buyer to vendor (order); invoice is vendor to buyer (request for payment) referencing the PO number.
What is 2-way vs 3-way matching?
Accounts payable matches invoice to PO (2-way) or invoice + PO + goods receipt (3-way) before paying.
These are general templates, not legal or tax advice. Have anything unusual reviewed for your jurisdiction.