What is a purchase order?
A purchase order (PO) is a document a buyer sends to a supplier to order goods or services. It confirms what you want, how many, at what price and when. Once the supplier accepts it, it acts as an agreement between you, and the supplier’s invoice should match it.
How to create a purchase order
- Put your company details in the “from” box: you are the buyer.
- Enter the supplier under “Bill To” (relabel it “Vendor” if you like) and your delivery address under “Ship To”.
- Give the PO a unique number. Suppliers will quote it on their invoice.
- List each item with the supplier’s product code, quantity and agreed unit price.
- Add shipping and tax, and set the required delivery date.
- Download the PDF and send it to the supplier.
Why use purchase orders?
- Avoid disputes over quantity or price
- Track what’s been ordered but not yet delivered
- Match supplier invoices against what you actually ordered before paying
Frequently asked questions
What’s the difference between a purchase order and an invoice?
The buyer sends a purchase order to place an order. The seller sends an invoice to request payment. A good invoice references the PO number.
Do small businesses need purchase orders?
They aren’t mandatory, but even a small business benefits once it orders regularly from several suppliers, because they make invoices easy to check.
Is it really free?
Yes. You can create and download as many documents as you like without paying and without creating an account.
Where is my data stored?
Everything you type stays in your own browser. Drafts and your history are saved locally on this device, so nothing is uploaded to our servers.