PO vs invoice
You issue the PO. The vendor issues the invoice. Matching both documents is how many teams catch wrong quantities, prices, or surprise freight charges.
Purchase order template
Issue a clear purchase order your vendor can fill.
Build a buyer-side purchase order with vendor details, bill-to and ship-to addresses, line items, tax, freight, need-by dates, and a live completeness check. Runs in your browser — copy, download, or print when ready.
- No signup
- Saved locally
- Copy, CSV, TXT, print
PO workbench Draft ready
1. Buyer & vendor
Name the company issuing the purchase order and the supplier who will fulfill it.
2. Order details
A need-by date and PO number help receiving and accounts payable match this order later.
This purchase order is a commercial planning document. Confirm tax, contract, and receiving rules with your own process before committing spend.
3. Line items
Add goods or services the vendor should supply. Totals update from quantity and unit price.
4. Adjustments
Model negotiated discounts, estimated tax, and freight on the authorized order total.
How a purchase order works
A purchase order is a buyer-issued authorization to buy. It tells a vendor what to supply, where to ship, when you need it, and what commercial terms you are committing to. Small businesses use POs to control spend, reduce order mistakes, and give accounts payable a document to match against invoices and receiving records.
This builder is structured instead of blank. You name the buyer and vendor, split bill-to and ship-to addresses when needed, add line items, set a need-by date, and export a clear draft. The page checks for missing pieces, calculates totals, and formats a plain-text PO you can copy, download, or print.
Split ship-to when needed
Billing often stays at headquarters while goods go to a warehouse, job site, or event venue. Record both addresses so receiving is not left guessing.
Need-by is operational
A need-by date is not just paperwork. It sets expectations for production, freight booking, and internal event or project timelines.
Formula and assumptions
The tool calculates line totals as quantity × unit price. Subtotal is the sum of all positive line totals. Discounts are applied before estimated tax. Shipping and freight are added after estimated tax.
Formula: order total = max(0, subtotal − discount) + estimated tax + shipping.
Tax treatment depends on location, product type, and whether freight is taxable. Treat the tax field as an estimate and confirm final sales-tax or accounting treatment with your own records or advisor. This tool is a planning aid, not legal, tax, or accounting advice.
When to use this template
Use a purchase order when you are authorizing a vendor order with fixed quantities and prices, when goods ship to a location different from billing, when you need a need-by commitment, or when accounts payable will later match invoices to approved spend.
Do not treat a draft PO as a substitute for signed contracts, regulated purchasing rules, or your bookkeeping system of record. After the vendor accepts, keep the PO with receiving notes and the final invoice.
Example: event furniture order
Harbor & Co Operations orders folding chairs and banquet tables from Northline Furnishings for a client event space. The buyer uses a PO to lock quantities, freight, a 3% negotiated discount, a need-by date, and dock instructions. Use Load example above to inspect the draft and see the totals update.
Frequently asked questions
What should a purchase order include?
Buyer and vendor details, PO number, issue date, need-by date, bill-to and ship-to addresses, line items with quantities and prices, shipping method, payment terms, authorized-by name, and any special receiving instructions.
Can I use this PO for services as well as goods?
Yes. Add service lines with hours, days, or fixed units. Keep descriptions specific so invoicing and acceptance criteria stay clear.
Is this a legal contract?
Not by itself. A PO can form part of a commercial record once accepted, but this page is a free planning and documentation tool, not legal advice and not a substitute for your contract process.
Where is my purchase order data stored?
Only in your browser via localStorage. Nothing is uploaded to Useful Business Tools servers. Use Reset to clear the local draft.