What a purchase order is for
A purchase order (PO) is the document a buyer sends to a vendor to formally request goods or services at agreed prices and terms, before anything ships. It's different from an invoice, which the vendor sends after delivery to request payment, and different from a quotation, which is the vendor's initial price offer before any order is placed. Procurement teams, small business owners, importers, and freelancers ordering supplies all use purchase orders to keep a written record of exactly what was agreed, which matters for budgeting, dispute resolution, and matching deliveries against what was actually ordered.
What should a purchase order include?
At minimum, a solid PO identifies the buyer and vendor, a unique PO number, the items or services ordered with quantities and agreed prices, applicable taxes and discounts, delivery expectations, payment terms, and an authorization signature. This generator's Header, Line Items, Totals, and Terms & Signatures sections map directly onto that checklist so nothing gets left off.
Worked example
A buyer orders 500 steel bolts at $0.12 each and 20 rolls of packing tape at $2.50 each. Subtotal: (500 × $0.12) + (20 × $2.50) = $60 + $50 = $110. A 5% order-level discount reduces this to $104.50. Adding a $15 shipping charge and 8% tax on the discounted subtotal ($8.36) brings the grand total to $127.86.
Frequently asked questions
What is the difference between a purchase order and an invoice?
A PO is sent by the buyer before delivery to request goods; an invoice is sent by the vendor after delivery to request payment.
Is a purchase order legally binding?
Once accepted by the vendor, a PO generally functions as a binding contract for what it specifies, though enforceability can depend on local commercial law.
Can I customize my purchase order template?
Yes — choose between Classic and Modern layouts, add your logo, pick an accent color, and save default terms and conditions.
Can I create purchase orders in different currencies?
Yes, every PO has its own currency selection across the full range of world currencies.