Below is a complete purchase order structure: PO number, supplier details, line items, delivery terms, and an approval signature. Copy it into a document or spreadsheet.
A purchase order (PO) is a formal commitment to buy goods or services from a supplier at agreed prices. It protects both sides — the supplier knows what to deliver and you have a documented record of what was ordered. This template covers everything from a one-off equipment purchase to recurring supplier orders.
PO Header
Fields
Description
PO Number*
Unique sequential — e.g. PO-2026-001.
PO Date*
Date the PO is issued.
Expected Delivery Date*
When you need the goods.
Buyer (Your Business)
Fields
Description
Business Name*
Your company name.
Delivery Address*
Where goods should be delivered (may differ from billing).
Contact Person*
Who the supplier should ask for.
Phone / Email*
Contact details.
Supplier
Fields
Description
Supplier Name*
The vendor you are ordering from.
Supplier Address
Registered address.
Supplier Contact
Sales rep name and contact.
Line Items
Fields
Description
Item Code / SKU
Product reference if available.
Description*
What you are ordering.
Quantity*
Number of units.
Unit
e.g. pieces, kg, hours, boxes.
Unit Price*
Agreed price per unit (excl. VAT).
Amount*
Quantity × Unit Price.
Totals
Fields
Description
Subtotal*
Sum of line item amounts.
VAT Amount
Tax on the order.
Shipping / Freight
Delivery cost if applicable.
Grand Total*
Subtotal + VAT + Shipping.
Terms & Approval
Fields
Description
Payment Terms*
e.g. “Net 30” or “50% deposit, 50% on delivery.”
Delivery Terms
Incoterms if international (e.g. DAP, FOB).
Notes
Special instructions — packaging, partial delivery, etc.
Requested By*
Person raising the PO.
Approved By*
Manager authorising the spend.
How to use
1Copy the sections above into a spreadsheet or document template.
2Assign a unique PO number to every order — never reuse numbers.
3Fill in supplier details carefully — errors here cause delivery problems.
4List each item on its own line with quantity, unit, and agreed price.
5Get the PO approved (signed) before sending it to the supplier.
6Keep a copy of every PO to match against the supplier invoice when it arrives.
Or automate this
Creating POs, matching them to supplier invoices, and tracking deliveries is a full-time job if you order often. Nika can generate purchase orders from your inventory data and match them to incoming invoices automatically — from {price} per PO.
Questions
What’s the difference between a purchase order and an invoice?+
A purchase order is sent by the buyer to the supplier before delivery — it commits to buying. An invoice is sent by the supplier to the buyer after delivery — it requests payment. The PO number on the invoice links the two.
Do small businesses really need purchase orders?+
For one-off purchases, a PO may be overkill. But once you order regularly from multiple suppliers, POs prevent disputes over prices, quantities, and delivery dates — and they make matching invoices much faster.