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Purchase order template

A simple purchase order with automatic totals, VAT and the terms a supplier needs to fulfil the order.

A purchase order (PO) is the document you send a supplier to confirm what you are buying, at what price and when. It gives both sides a clear record and lets finance match the invoice to what was ordered and received.

This purchase order template works for businesses without a purchasing system or as a backup to one. The Excel version calculates line totals, VAT and the order total automatically.

Free to download. Available as Excel and Word.

What's included

  • Buyer and supplier details
  • PO number, date and requester
  • Line items with quantity, unit price and line total
  • VAT and order total calculation
  • Delivery address, date and terms
  • Payment terms and invoice instructions
  • Authorisation sign-off

How to use this template

  1. Give every order a unique PO number and keep a log.
  2. Enter the supplier details and each item with its agreed price.
  3. Add delivery details and the payment terms you agreed.
  4. Get the order approved in line with your procurement policy.
  5. Send it to the supplier and ask them to quote the PO number on their invoice.

Frequently asked questions

Once a supplier accepts a purchase order, it usually forms a contract on the terms stated or referenced. Attach or link your standard terms of purchase.

It lets finance match the invoice to an approved order and to the goods received, which reduces payment errors and duplicate payments.

Many businesses set a value threshold in their procurement policy, below which a card or simple approval is enough.

Need help putting this into practice?

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Last updated 22 October 2026