Purchase Order template
A purchase order is a binding contract. This PO template will help you to get it right first time.
Anyone who regularly orders items for their business will know all about purchase orders.
The reverse of an invoice, the purchase order is a request to buy items; it indicates the exact type of item, quantity, and agreed prices from external suppliers.
If your purchase order is structured correctly, there should be no possibility of confusion.
What is a purchase order?
A purchase order is a binding contract, and as such there are millions of them sent out every day across the world to keep companies working together correctly and efficiently.
When is a PO is used?
A purchase order is raised for a range of purchases, typically:
- Office stationary
- Office furniture
- Services - employing freelancers or external agencies
- Large goods - such as printers or photocopiers
What should a PO include?
Providing the item, the item number, the quantity, the method of payment and all addresses and contact details are present, the transaction should progress smoothly.
Download our template and get those orders placed.
Key items
- PO number
- Supplier details
- Purchaser details
- Payment terms
- PO reference
- Item number (if applicable)
- Quantity (if applicable)
- Description
- Price per unit
- Total (ex VAT)
- VAT (if applicable)
- Total net
Key Terms
- Shipping method: Method by which you would like the item delivered (eg road, flight, sea).
- Shipping date: latest date that the buyer expects the items to be delivered by
- Terms: When the invoice for payment has to be made by - eg 30 days after delivery
- Reference: A number, which will be quoted on the invoice accompanying the items when they arrive.
Want to learn how to manage your start-up’s finances? Check out our free online courses in partnership with the Open University on being an entrepreneur.
Our free Learn with Start Up Loans courses include:
- Introduction to bookkeeping and accounting
- Companies and financial accounting
- Financial methods in environmental decisions
Plus free courses on finance and accounting, project management, and leadership.
Disclaimer: The Start -Up Loans Company makes reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article.
The Start-Up Loans Company is not liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss, loss of income, revenue, benefits, profits, opportunity, anticipated savings, data. We do not exclude liability for any liability which cannot be excluded or limited under English law. Reference to any person, organisation, business or event does not constitute an endorsement or recommendation from The Start-Up Loans Company, its parent company British Business Bank plc, or the UK Government.
Your previously read articles
Related articles
How to promote your business locally
Read article How to promote your business locally
How to start a business without money
Read article How to start a business without money
When is the right time to start a business?
Read article When is the right time to start a business?
Sign up for our newsletter
Just add your details to receive updates and news from Start Up Loans
Sign up to our newsletter