Purchase order sample: format, fields and a worked example

A purchase order is a document a buyer sends a seller to order goods or services at an agreed price. If you need a purchase order sample you can copy today, the layout, the Excel formulas and the worked example below give you one that a supplier can act on.

This guide is written for freelancers and small businesses in the United States, the United Kingdom and Germany. It describes common practice and does not give legal or tax advice.

What is a purchase order and how does it differ from an invoice?

A purchase order (often shortened to PO) is the buyer's offer to buy, and a sales invoice is the seller's request for payment. The purchase order comes first. The invoice comes after the goods or services are delivered, and it should quote the purchase order number so the buyer can match the two.

GOV.UK lists what a UK invoice must include, such as a unique identification number, the supply date, a clear description and the total owed, in its guidance on what invoices must include. A purchase order is not an invoice and does not replace one. It carries the same core details, but it is the order, not the bill.

The IRS says that purchases, sales, payroll and other transactions generate supporting documents, in its recordkeeping guidance for businesses. A purchase order is one of those documents on the buying side.

What should a purchase order sample include?

A purchase order sample should include enough detail for the supplier to fill the order without asking questions. These are the fields most buyers use.

1. A unique PO number from a running sequence.
2. The issue date and the requested delivery date.
3. The buyer's name, billing address and contact person.
4. The supplier's name and address.
5. A line for each item: description, quantity, unit price and line total.
6. The delivery address, if it differs from the billing address.
7. Payment terms, such as Net 30.
8. A subtotal, any tax and the grand total.
9. An authorizing name or signature.

For example, a "specimen of purchase order" in a college textbook usually shows exactly this list. The labels vary, but the content stays the same.

Purchase order format in Excel: layout and formulas

A purchase order format in Excel is a one-sheet layout with a header block and an items table. The header holds the PO number, dates and addresses. The table below it holds the lines and the maths.

Below the table, use two more formulas. The subtotal cell sums the line totals with =SUM(E2:E20). The grand total cell adds tax with =E21+E22, where E22 holds the tax amount.

Lock the formula cells and leave the quantity and price cells open. That stops a stray keystroke from overwriting a total.

Worked example: a filled-in purchase order

A filled-in purchase order shows how the fields and the formulas fit together. This example is a US small business ordering office furniture in US dollars.

Sales tax depends on the buyer's state and what is bought. Add a tax line only where your state tax agency says it applies. The same layout works in euros or pounds, with VAT added as a line where the supplier is VAT-registered.

Invoqk can generate a matching purchase order from a plain description of what you are buying.

How do you match a purchase order to an invoice?

Matching means checking that the invoice agrees with the purchase order before you pay it. Many buyers run a three-way match, which compares the purchase order, the delivery note and the invoice.

1. Confirm the invoice quotes the PO number.
2. Check each quantity against what arrived.
3. Check each unit price against the purchase order.
4. Confirm totals and payment terms agree.

A mismatch is a reason to query the invoice, not to pay it. Keep the matched set together, because HMRC's VAT records notice says UK businesses must generally keep records for VAT purposes for at least 6 years. In Germany, section 14 of the VAT Act requires a sequential invoice number and the quantity and type of goods or scope of services on every invoice, so a quoted PO number sits alongside those details. Why does this matter for suppliers too? An invoice that quotes the PO number is paid faster, because the buyer's team can match it at once. The Quote template: what to include, with a free example shows the document that often comes before a purchase order. Once the buyer pays, the seller closes the loop with a receipt, which the Online receipt generator: how to make a valid receipt explains.