Purchase Order Template: How to Prepare One

A well-prepared purchase order (PO) template gives your team a consistent way to request and record purchases. It helps buyers state what they need, suppliers confirm what they will provide, and approvers review the cost and delivery details. Before you begin, decide who will create, approve, and send POs, and check any purchasing rules your organization already uses. You can build the template in a document or spreadsheet and print it when needed.

What You’ll Need

• A document or spreadsheet editor, or a blank page if you intend to create a printable form by hand.
• Your organization’s purchasing workflow, including who approves orders and when a PO number is assigned.
• Basic buyer and supplier details, such as names, addresses, and contact information. Use placeholders while building the template if you do not have a real order to hand.
• A few recent purchase examples, if available, to help identify the items and delivery details your team commonly records.
• A place to save the approved master copy and a method for tracking completed POs, such as a shared folder or register.

Step-by-Step

1. Define what the template is for. Decide whether this form will cover routine goods, services, or both. A template for stocked supplies may need product codes and quantities, while service orders may need a description of the work, dates, and a milestone or rate field. If the same form must handle several purchase types, allow enough room for a clear description and add optional fields rather than forcing buyers to enter irrelevant information. Keep the document focused on recording a purchase request and its agreed order details; it is not a substitute for a contract or an internal approval policy.
2. Set up the document for repeated use. Choose a page size and orientation that can display the fields and item table without cramped text. Add a plain heading such as “Purchase Order” and leave a clear area for your organization’s name and contact information. Make the form easy to read in print and on screen: use descriptive labels, consistent spacing, and adequate writing room. Avoid decorative elements that reduce the space available for order details. Save the working file as a master so users can make a copy for each new order instead of overwriting the original.
3. Add buyer and supplier identification fields. Include the buyer’s legal or operating name as your organization uses it, address, contact person, email, and phone. Provide matching fields for the supplier, including the supplier’s name, address, and order contact. A separate “Ship to” area is useful when goods should go somewhere other than the buyer’s address; add “Bill to” if invoices are directed to a different location. Label each address clearly so a supplier does not mistake a delivery destination for a billing address. Leave enough lines for a full address and a named recipient.
4. Create a reliable PO identification area. Include a PO number, issue date, and, where relevant, a requested delivery date. The PO number should be unique under your organization’s numbering process. Decide whether the person preparing the form or an authorized system assigns it, and describe that process in a short instruction outside the printable form if necessary. Avoid using a supplier’s quote number as the PO number: the quote can be recorded in a separate reference field. A status field, such as “Draft,” “Approved,” or “Sent,” can help teams distinguish an unapproved request from an order already issued.
5. Build an item table with practical columns. For each line, provide fields for item or service description, item code if used, quantity, unit of measure, unit price, and line total. A unit of measure makes quantities less ambiguous—for example, “box” or “hour” instead of an unexplained number. Add enough blank lines for a normal order and make clear how to continue on an attached page if an order is longer. For service work, buyers can describe the service and the period or milestone in the description field. Keep the columns wide enough for readable entries, especially descriptions and units.
6. Add totals and currency fields. Include subtotal, delivery or other separately stated charges when applicable, any applicable tax amount, and the final order total. Label the currency explicitly so the buyer and supplier know what the figures represent. Decide how amounts should be rounded and follow your organization’s established process. Do not assume that every purchase has the same extra charges; leave fields that are not relevant blank or mark them “Not applicable” according to your procedure. Make sure the final total is visually prominent and that the form does not imply a charge has been confirmed when it is still subject to supplier confirmation.
7. Record delivery, reference, and order notes. Add fields for requested delivery date, delivery method or instructions, and any relevant quote, project, department, or cost-center reference used internally. A notes area can capture details that do not fit the item rows, such as packaging instructions or a site contact. Keep instructions specific and concise. If there are separate documents that contain detailed specifications, identify them by name or reference and attach them; do not rely on a vague note such as “see previous email.” Avoid putting confidential information in a field that will routinely be sent to the supplier unless it is necessary.
8. Make the approval and acceptance process visible. Add fields for the requester, preparer, approver, approval date, and, if your workflow requires it, supplier confirmation. If signatures are part of your process, provide a signature and date line; if approval is recorded elsewhere, identify the approved-by field or reference instead. State clearly whether a PO is a request, an approved order, or an order ready to send. Keep internal approval fields distinct from supplier-facing information so that no one confuses an internal sign-off with supplier acceptance. Follow your organization’s existing authorization limits and review steps.
9. Review, test, and publish the master. Fill out a copy using a realistic but fictional purchase to check that the fields make sense and the totals area is usable. Ask a buyer or approver to review whether anything essential is missing. Print or preview the page to catch cut-off columns, small text, and blank fields that are too short. Correct any confusing labels, then save a clean master with a version date or revision note. Tell users where to find it and how to name completed orders. Keep the master separate from completed POs, and replace older copies in the shared location so staff do not continue using an outdated form.

Purchase Order Template

Common Mistakes

A frequent mistake is leaving out the unit of measure. “Order 12” does not tell a supplier whether the buyer means individual pieces, cartons, or another unit. Another is using an unclear or reused PO number, which makes it harder to match an order to its invoice or delivery. Establish one numbering method and check for duplicates before sending.

Buyers also sometimes omit the delivery address, requested date, or supplier contact, especially when those details seem familiar from earlier orders. Enter them on each PO rather than assuming the supplier will infer them. Check that line totals and the final total agree with the listed quantities and prices, and identify the currency. Do not treat a quote as an approved order unless your process authorizes that step. Finally, avoid changing the master form while creating an individual PO; make a copy first so future users retain the clean template.

Tips

• Use plain labels such as “Requested delivery date” rather than internal shorthand that suppliers may not understand.
• Keep optional fields clearly marked as optional, and identify required fields in a short instruction near the form or in the team’s procedure.
• Use consistent date and number formats throughout. For example, spell out the month or use a standard format your whole team recognizes to reduce ambiguity.
• Design the item table for ordinary orders, then provide a simple way to attach additional item pages. Repeat the PO number on every continuation page.
• Keep internal-only references and supplier-facing instructions distinguishable. If you send the PO externally, review the whole copy for notes that should remain internal.
• Store completed orders in a predictable location and use a consistent file name, such as PO number followed by supplier name and issue date. Follow your organization’s retention and access practices.
• Review the template periodically with the people who use it. Update fields when your workflow changes, and tell users which version is current.

Troubleshooting

The form is too crowded or prints across multiple pages unexpectedly. Remove decorative elements, shorten repeated instructions, widen the description column, or switch to a suitable page orientation. If the item table continues onto another page, make the page break intentional and repeat the PO number and column headings so the continuation remains identifiable. Preview the printed result before releasing the master.

People keep leaving important fields blank. Make the field label more specific, add a brief instruction, or mark the field as required when it is needed for every order. Ask users which step causes confusion. Do not make every field mandatory if some purchases do not need it; that can encourage people to enter inaccurate filler text.

The supplier says the order details do not match its quote. Pause the order and compare the item descriptions, quantities, units, prices, currency, and delivery details against the current quote or other approved source. Correct the PO through your normal revision process, identify the changed version, and resend it to the relevant contacts. Do not silently edit a copy that has already been approved or sent.

Totals do not calculate correctly. Recheck the quantity and unit price on each line, then confirm that the line totals and final total follow your organization’s calculation and rounding process. If using a spreadsheet, verify that formulas cover every item row and are not overwritten by typed values. If you are unsure how a tax or other regulated amount should be handled, ask a qualified professional.

Frequently Asked Questions

What is the difference between a purchase order and an invoice?
A purchase order records what the buyer is requesting or ordering from a supplier. An invoice is a supplier’s request for payment for goods or services supplied. Teams commonly compare the PO, delivery record, and invoice as part of their own review process.

Which fields should every purchase order include?
At minimum, include a unique PO number, issue date, buyer and supplier identification, item or service descriptions, quantities and units where relevant, prices, currency, delivery details, and a total. Add approval information and any references required by your organization.

Can I use one template for products and services?
Yes, if the form has flexible description and notes fields and gives users a clear way to record relevant quantities, rates, periods, or milestones. If product and service purchases follow different approval or documentation steps, separate versions may be clearer.

Should the supplier sign the purchase order?
That depends on the process agreed between the parties and your organization’s procedures. You can include a supplier confirmation field if it is useful, but distinguish it from internal approval. Do not assume a blank signature line is required or sufficient for every transaction.

Can I create the template in a spreadsheet?
Yes. A spreadsheet can make repeated line items and arithmetic easier to manage, while a document may be simpler for a small number of orders or printing. Whichever format you choose, protect the master, check formulas and print layout, and make a fresh copy for each order.

What should I do if my situation involves legal or tax requirements?
If your situation raises legal, tax, or other regulated questions, ask a qualified professional rather than relying on a generic template.

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