Free Purchase Order Generator

What Is a Purchase Order?

A purchase order (PO) is a formal document a buyer sends to a supplier to authorize a purchase. It lists the products or services being ordered, quantities, agreed prices, delivery expectations, and payment terms. Once the supplier accepts the PO, it becomes a binding agreement between both parties for that specific transaction.

Purchase orders are typically created by the buyer's procurement, finance, or operations team. They help businesses control spending, maintain accurate records, prevent duplicate orders, and resolve disputes if something goes wrong during delivery or billing.

Unlike an invoice, which is issued by the seller after goods or services are supplied, a purchase order is issued by the buyer before fulfillment. In a typical workflow: Quotation → Purchase Order → Invoice → Receipt. You can create a quotation with our free tool, then convert it into a purchase order, and finally generate an invoice once the goods are delivered.

How to Create a Purchase Order

Follow these steps to create a professional purchase order using our free generator:

1. Enter buyer information — your business name, contact details, billing and shipping addresses, and tax ID.
2. Add supplier information — the supplier's company name, contact person, address, and tax ID.
3. Add PO number and date — use your own numbering system or generate one automatically.
4. Add products or services — list each item with a clear description, SKU, and unit.
5. Add quantities and prices — specify quantity, unit price, and any per-item discount.
6. Add tax and shipping — apply tax rates, shipping costs, and additional charges as needed.
7. Add payment and delivery terms — choose Net 30, Net 15, or a custom term.
8. Review the purchase order — check the live preview to confirm everything looks correct.
9. Download or print the PO — save it as a PDF or print directly.

Purchase Order Template

A useful purchase order template includes these core sections: buyer and supplier details, PO number and date, itemized products or services with quantities and prices, taxes and shipping, subtotal and grand total, payment and delivery terms, terms and conditions, and an authorized signature block.

Our free online purchase order generator creates all these sections automatically as you fill in the form. You can see the live preview above to understand exactly what your finished PO will contain.

Purchase Order Template in Word

Some businesses prefer to start from a purchase order template in Word so they can edit the layout manually. You can use our free generator to create the PO content, then copy it into Microsoft Word, Google Docs, or any other word processor to customize it further.

If your business needs a specific format — for example, a PO with your own header, footer, or legal clauses — we recommend generating the base document here and then editing it in your preferred tool.

Purchase Order Terms and Conditions

Purchase order terms and conditions define the rules of the transaction between buyer and supplier. Well-written terms typically cover:

• Payment — when and how payment will be made (e.g., Net 30, advance deposit).
• Delivery — delivery date, location, method, and responsibility for shipping costs.
• Returns — conditions under which goods can be returned or rejected.
• Quality requirements — specifications the goods or services must meet.
• Changes and cancellations — how modifications or cancellations are handled.
• Taxes — which party is responsible for applicable taxes.
• Warranty — any warranty offered on goods or services.
• Inspection and acceptance — how and when the buyer accepts delivered goods.

Here's a short general sample you can adapt:

"Goods or services will be supplied according to the specifications and quantities stated in this purchase order. The supplier should confirm the purchase order and notify the buyer of any changes to price, quantity, availability, or delivery schedule before fulfillment. Payment will be made according to the payment terms stated in this purchase order."

This is a general sample only, not legal advice. Consult a legal or commercial advisor for terms suited to your transaction and jurisdiction.

Purchase Order Terms and Conditions for Suppliers

When drafting terms specifically for suppliers, keep them practical and clear. Supplier-facing terms often include:

• Confirmation — the supplier should confirm the PO in writing before starting fulfillment.
• Delivery requirements — specific dates, packaging, and delivery method.
• Quantity and pricing — exact quantities and agreed unit prices.
• Product specifications — technical specs, quality standards, or service scope.
• Changes — how the supplier should notify the buyer about price or availability changes.
• Invoicing — invoice format, PO number reference, and submission deadlines.
• Payment — payment schedule and method.
• Defects and returns — process for reporting and replacing defective goods.

Purchase Order Example

The live preview above shows a realistic example of a purchase order generated with this tool. It includes all the essential fields: buyer and supplier details, PO number and date, itemized list, tax and shipping breakdown, grand total, payment terms, delivery terms, notes, terms and conditions, and the authorized signature.

Use this preview as a reference when creating your own PO, or simply fill in the form and the preview will update automatically.

Purchase Order vs Invoice

A purchase order and an invoice serve different roles in a transaction:

• Purchase Order — Created by the buyer. Authorizes a purchase. Sent before fulfillment.
• Invoice — Created by the seller. Requests payment. Sent after goods or services are supplied.

The PO number is often referenced on the invoice so both parties can match the payment to the original order. If you're a seller, use our free invoice generator to create invoices that reference your customer's PO number.

Purchase Order vs Quotation

A quotation is an initial price offer from the seller. A purchase order is the buyer's formal acceptance and authorization to proceed. The typical flow is:

1. Supplier sends quotation
2. Buyer reviews and accepts
3. Buyer issues purchase order
4. Supplier fulfills order
5. Supplier issues invoice
6. Buyer makes payment and receives receipt

You can create a quotation, convert it into a purchase order, and later create a matching invoice — all using Invoice-Make's free business tools.