25+ Best Purchase Order Template (Excel, Word)

sample po format

The purchase department makes several purchases daily. It has to maintain every document from purchase requisition to the approval or GRN. Thus, the purchase order template is useful for the supply chain department for internal and external use.

Most of the developed businesses use enterprise resource planning tools to generate demand requisition, purchase order, and goods receipt note type documents for the supply chain management. However, the ERP system isn’t affordable for all companies. Further, these documents can’t be eliminated from the system due to multiple reasons. Thus, the use of MS Excel or Word-based purchase documents is preferred by small businesses.

The MS Excel provides advanced control on the purchase order individual sheet and combined sheet for a specific supplier. So, the company can use these sheets for multiple reasons. Also, the MS Excel templates are very easy to use, customize, and edit as per the nature of business. You can also like the Inventory List Template.

People also ask

What is a purchase order?

A purchase order is a legal document that buyers send to sellers with a request for items or services as an order. Each purchase order includes the following information;

  • Purchase order number. It helps both buyer and seller in tracking delivery and payment.
  • Type of item
  • Quantity
  • Price.

However, more particular order contains more details. But there is a general rule that the more information you include then your Purchase order will be more effective.


What is a purchase order in QuickBooks?

QuickBooks is a small business accounting software program. Businesses used it to keep the track of the financial health of their business. It is used to invoice customers, pay bills, make reports, and prepare for taxes. So, to create purchase orders QuickBooks is used.


Which details should be included in the purchase order?

Here are the important details that must be included in the purchase order;

1. Name and address of the buyer and seller:

Firstly, provide the name and address of the buyer and seller. This enables both parties to verify who started the transaction and the order is sent to the right recipient. In addition, it also helps to improve the communication surrounding the purchase order in case of confusion.

2. Delivery and billing address of the purchaser:

The delivery address tells where the items or services will be delivered. On the other hand, the billing address indicates the sellers where they will send an invoice to request their payment. In some cases, both delivery and billing addresses are the same, while other times both are different.

3. Purchase order number:

The purchase order number allows you to identify and track the document. It is used as both an internal and external reference number. When companies issue many purchase orders then they use one or more naming conventions to arrange their purchase orders.

4. Issued and delivery date:

The issued date includes when the order was issued. For buyers, to review when compiling spend reports. While the delivery date allows the sellers to verify time frames for planning their delivery schedule.

5. Product details:

Product details include the item names, description, and defined quantities and prices.

6. Additional instructions:

You should also include terms, conditions, and additional instructions. This is because clearly mentioned terms and conditions assists to settle disputes.


What is the purpose of a purchase order?

A purchase order has the following purposes;

  • To track payments to sellers.
  • To track large orders.
  • To keep the record for auditing purposes.
  • To specify the terms between buyer and seller.
  • To get more detail and utility than a basic expense record.
  • To track the delivery and payment of every order.
  • To track the internal status of every order.

What do you know about the 4 processes of purchasing in SAP?

The four basic processes of purchasing in SAP (systems, applications, products) are;

  1. The purchase order.
  2. The goods receipt purchase order.
  3. The accounts payable (A/P) invoice.
  4. And, the outgoing payment.

Importance of Purchase Order Template

The purchase order template is very useful for businesses. It has multiple applications and purposes. Although, a purchase order is purely an internal document of the company. It’s a requirement for the audits. Also, it has multiple uses for the purchase, finance, and accounts team to maintain the transparency of the procurement process.

The procurement process started with the required identification. So, the purchase requisition is generated by the concerned department. Further, the procurement department checks the technical details of demand items and finalize the technical specs and rate with the approved suppliers. You should also check the Gift Certificate Template.

Once the rate and specifications are finalized. The purchase department raises the purchase order. P.O is share with the finance department and accounts to go for the L.C establishment or payment.

It includes the essential details about the supplier, shipment date, payment terms, parts description, quantity, rate, and total amount.

Elements of Purchase Order Template

There are many types of purchase order template. Some companies just include information about the current order. While the orders may include information about the previous order, supplier, and parts.

The purchase order header includes the information about the document like the type of PO, PO number, revision #, order date, created by, revision date, and current buyer name.

The upper section of the body includes supplier details and other terms such as supplier number, payment terms, freight terms, ship via, transportation. While the main section of the document includes the details of demand number, line number, part number, part description, delivery date, quantity, unit of measurement, rate, tax, and total amount. You may also see the Client Information Sheet Template.

How to use Purchase Order Template?

The purchase order is very simple to document to use. Once the technical details are finalized and the rate is negotiated. The procurement team uses the default template to enter the relevant information.

The last purchase price of the same parts can also be mentioned. The supplier number is awarded by the company itself for internal use. Other information is simple to enter like PO number, dates, parts description, rate, quantity, and total amount.

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