What a purchase order must include

A purchase order (PO) is not a document any tax office defines, so there is no fixed legal list of what it must show. It is a commercial document: the clearer it is, the less room there is for a dispute about what was ordered, at what price, and when it should arrive.

What a clear purchase order shows

1. A PO number. A unique, sequential number so you and the supplier can both refer to the same order in every email, delivery note and invoice that follows.
2. Your business details. Your name, address and contact details, and your tax or business registration number (for example an ABN, GST number or VAT number), so the supplier knows exactly who they are dealing with.
3. The supplier's details. Their name and address, so there is no doubt about who the order was sent to.
4. The date the order was issued, and a delivery date the supplier is expected to meet.
5. A delivery address. Where the goods or work should actually turn up, if that is different from your billing address.
6. Each item, with a quantity and a unit price. A vague description ("materials, as discussed") is where most PO disputes start; be specific.
7. Tax, if it applies. Show it at the rate you expect, so the total the supplier sees matches what you expect to pay.
8. Payment terms. When you intend to pay once the invoice arrives, for example 14, 30 or 60 days from the invoice date.
9. An authorised signature or approval, where your business requires one. Papertern does not add a signature field to the PDF; add one in your own workflow if you need it.

Is a purchase order legally binding?

General information, not legal advice: a purchase order is normally an offer to buy on the terms it states. Once the supplier accepts it, for example in writing, or by starting the work or shipping the goods, it typically becomes a binding contract on those terms. If a lot of money is riding on an order, have your own terms and conditions checked by a lawyer rather than relying on this guide alone.

Purchase order, quote or invoice?

A quote is the supplier's offer, before anything is agreed. A purchase order is the buyer's order, once they decide to go ahead. An invoice is the supplier's request for payment, after the order is fulfilled. Papertern's purchase order maker carries your business, the supplier and every line straight into the invoice maker with one click, once the order is confirmed.

Purchase order makers by country

Each country edition uses the same tax name and business ID field as that country's invoice maker.