Purchase Order Template: What Purchase Order Should Include

Nicole Georgiev
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    Purchase orders are contracts between buyers and sellers. They are crucial to the procurement process, especially when running a wholesale business. To increase operational efficiency, a business owner will likely use a purchase order template when placing an order. 

    A standard purchase order will include details regarding what items are desired, how and where they will be shipped, as well as specific timeframes. Remembering to include all this information can be tricky. That’s why using a purchase order template or referring to a purchase order sample is necessary.

    This blog post will help you create a purchase order template for your business. Utilizing the template will allow you to increase efficiency and speed up the ordering process. First, be sure to familiarize yourself with the purchase order definition and purchase order vs invoice

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    Purchase Order Template - 5 Things to Include

    You can create a purchase order manually on paper or using purchase order software. When creating a PO, you’re likely asking yourself, “What should a purchase order include?” 

    It’s common for businesses to use letterhead documents that include buyer details and company branding.

    A purchase order sample looks like this: 


    Date: 08/18/2022

    PO number: 0001

    Buyer: Business Name

    Delivery address: (includes delivery address, buyer phone number, and email).

    Supplier: (includes name, address, phone number, and email). 

    Key Takeaway: Using a purchase order template will ensure that you include all the necessary information within your purchase order. This helps improve efficiency within the procurement process. 

    Here are five things to include when creating your purchase order template: 

    1. Header

    The header of your purchase order will include all company details. This includes the company name and business address. Aside from that, the header should also include the purchase order number and order date. 

    2. Vendor Information

    It’s important to specify the proper recipient for the purchase order. Include the name of the seller and your contact information such as your name. Be sure to also include the address of the seller’s company. 

    3. Shipping Information

    To ensure that you receive your order, be sure to include the right address. Specify the shipping method you desire as well as any additional terms. If you have a desired delivery date in mind, be sure to also include that.

    4. Order Details

    A purchase order should include details regarding each product or service being ordered. Your purchase order template should include a line item with a SKU number or UPC code, item name, unit quantity, and the price per unit. 

    5. Summary

    To summarize the purchase order, include a subtotal for all the items you ordered, applicable discounts, tax, and shipping costs. It’s also ideal to calculate the overall cost of the entire order. 

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    Purchase Order Templates

    An easy way to create a purchase order is by using a purchase order template. It’s a guide that ensures you include all the essential information. 

    A purchase order template will also help you ensure the format of each document is correct. With a template, you have the ability to fill in the information and reuse the document within seconds. 

    When creating a purchase order template for your business, all you have to do is upload the document, add your formatting, and save it. This will also make the invoice process easier. Plus, you can use an invoice template for that part, too. 

    Similar templates that businesses use to improve efficiency include a packing slip template, shipping policy template, line sheet template, and privacy policy template. These make creating new business documents easy. 

    5 Types of Purchase Orders

    Not all purchase orders are the same. In fact, there are five different types of purchase orders that you can use for your business. Each one includes different information which is why creating a purchase order template is ideal. 

    The five types of purchase orders include:

    1. Standard Purchase Orders

    These are the most commonly used by businesses. A standard purchase order includes clear details about what products or services the buyer desires to purchase. The buyer will identify the item or service they want, the quantity, payment terms, and delivery schedule.

    For example, imagine you’re in the restaurant industry and are looking to purchase dairy products, such as dairy eggs. You would use a standard purchase order template and include the type of eggs you want (free-range eggs, standard white eggs, standard brown eggs, etc). It’s also necessary to include the number of eggs and when you need them.

    It’s possible to use a standard purchase order for different business industries. For example, the meat industry, restaurant industry, and eCommerce industry.

    2. Blanket Purchase Orders

    A blanket purchase order is when a buyer places multiple orders at one time in order to get a cheaper or discounted price. This is similar to the wholesale definition and ordering products in bulk to save money. 

    For example, a company may negotiate a better deal when they agree to place multiple orders of healthy snacks and wholesale candy products from a single supplier. To acquire these items, the buyer would use a blanket purchase order. 

    3. Digital Purchase Orders

    A smooth and efficient procurement process is beneficial for the buyer and the seller. This is possible with a set process in place for purchase orders.

    One way to do this is by utilizing digital purchase orders. You can do this through Microsoft Excel, Open Office, or purchase ordering software. This software has pre-existing purchase order templates for you to use. 

    4. Planned Purchase Orders

    A planned purchase order is created when a buyer estimates their future needs. This is similar to demand planning or inventory forecasting

    These purchase orders are sent from the buyer to the seller in advance. The item details, prices, and payment terms are established. However, the quantity of each item is based on an educated guess and the delivery time is to be determined. 

    5. Contract Purchase Orders

    These purchase orders are considered to be the most formal of all. In a contract purchase order, the buyer and the seller sign a contract detailing the terms of the purchase before an official purchase order is created.

    A contract purchase order provides the most legal protection for all parties involved. This is similar to a wholesale purchase agreement

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    Frequently Asked Questions About Purchase Order Templates

    Purchase orders benefit buyers and suppliers by ensuring that there is no miscommunication during the procurement process. Be sure to look into what is procurement and procurement management. You can also explore procurement vs purchasing. Using a purchase order template makes it easy to create each PO, even if you don’t work with a specific supplier relationship management manager. 

    Before creating your own purchase order template, be sure to read the following commonly asked questions:

    Can I Make My Own Purchase Order?

    Yes, you can make your own purchase order. To design your own purchase order, you have to create a digital form. This can be done from scratch or using a purchase order template. 

    A purchase order template will allow you to easily collect the necessary information for the document. Such information includes order details, supplier information, item price, and delivery information. 

    Who Prepares a Purchase Order?

    The buyer prepares the purchase order. Buyers are responsible for creating and issuing purchase orders. Larger companies will oftentimes have a procurement or purchasing department that handles these tasks. For smaller companies, the business owner or inventory control manager may handle this job. Once the purchase order is created, you can use purchase order tracking software to keep track of it.

    Is There a Purchase Order Template in Word?

    Yes, you can find a purchase order template in Word. Purchase orders can be created using templates in Excel or Word. 

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