What to Include in a Purchase Order

A purchase order (PO) is a document the buyer sends to a seller to formally request goods or services at an agreed price. It is the mirror image of an invoice: the invoice asks for payment, the PO authorizes the order in the first place. When the seller accepts it, a PO becomes a binding contract — which is exactly why the details matter.

Why bother with a PO at all?

For anything beyond a trivial purchase, a PO creates a clear record of what was ordered, at what price, and when it was promised. It prevents the "that's not what I ordered" and "that's not the price we agreed" arguments, gives your accounting a document to match the invoice against, and — for larger companies — enforces spending approvals before money goes out.

The fields a purchase order needs

1. A unique PO number. The seller will reference this on their invoice so the two documents can be matched.
2. Buyer and seller (vendor) details. Full business names and addresses for both sides.
3. Order date. When the PO is issued.
4. An itemized list. Each product or service with a description, SKU or part number where relevant, quantity, and agreed unit price.
5. Subtotal, tax, shipping, and total. The full expected cost, so there are no surprises on the invoice.
6. Delivery details. The ship-to address and the date or window you expect delivery. This is the field most often left off — and most often disputed.
7. Payment terms. Net 30, deposit required, or whatever you have agreed.
8. Authorization. The name and signature of whoever is approving the spend.

How a PO flows through an order

The typical sequence is simple: the buyer issues the PO, the seller confirms and fulfills the order, then the seller sends an invoice that references the PO number. Accounting matches the invoice to the PO (and often to a delivery receipt), and payment is released. Keeping the PO number consistent across all three documents is what makes this "three-way match" work.

Create a purchase order

Our free purchase order generator includes vendor details, a delivery address, itemized lines, and an authorization signature — everything above — as a clean PDF. Pair it with a receipt when goods arrive to close the loop.