Purchase Order Template - Free Online

PRODUCT CODE	DESCRIPTION	QTY	UNIT	PRICE	AMOUNT
SS-CW-12	Stainless Steel Cookware Set (12pc)	200	SET	45.00	9000.00
NS-FP-28	Non-stick Frying Pan 28cm	500	PCS	12.50	6250.00
KU-SET-5	Kitchen Utensil Set (5pc)	400	SET	8.00	3200.00
Subtotal	1100			USD 18,450.00
Volume Discount (10%)	-USD 1,825.00
TOTAL	USD 16,625.00

PRODUCT CODE

DESCRIPTION

QTY

UNIT

PRICE

AMOUNT

SS-CW-12

Stainless Steel Cookware Set (12pc)

200

SET

45.00

9000.00

NS-FP-28

Non-stick Frying Pan 28cm

500

PCS

12.50

6250.00

KU-SET-5

Kitchen Utensil Set (5pc)

400

SET

8.00

3200.00

Subtotal

1100

USD 18,450.00

Volume Discount (10%)

-USD 1,825.00

TOTAL

USD 16,625.00

What is a Purchase Order used for?

A purchase order is a legally binding document that initiates a commercial transaction between a buyer and seller. In international trade, it serves as the official authorization for a supplier to ship goods and is a key document in the procurement process. A well-structured PO helps prevent disputes and ensures both parties have clear expectations.

The purchase order outlines exactly what the buyer wants to purchase, including product specifications, quantities, agreed prices, delivery terms, and payment conditions. It becomes a binding contract when accepted by the seller, forming the basis for subsequent trade documents like invoices and shipping documents.

For importers and buyers, maintaining proper purchase orders is essential for inventory management, budget control, and audit compliance. The PO number is referenced throughout the transaction lifecycle, appearing on invoices, packing lists, and customs documents to link all related paperwork.

Authorizing suppliers to ship goods

Specifying exact quantities and prices agreed upon

Establishing delivery dates and shipping terms

Creating a legal record of the purchase agreement

Reference for matching invoices to orders

Tracking procurement and inventory management

Supporting audit trails and financial records

How to create a Purchase Order

Enter buyer and seller details

Add your company information (buyer/From) and the supplier details (seller/To) including complete addresses and contact information.

Add product information

List all products you want to order with descriptions, product codes, quantities, units of measurement, and agreed unit prices.

Specify trade terms

Select the appropriate Incoterms (FOB, CIF, EXW, etc.) and define payment terms including any deposits or payment milestones.

Set shipping and delivery details

Specify the required delivery date, method of shipment, and ports of loading and discharge.

Review and authorize

Review all details, add any special terms or conditions, and sign to authorize the purchase order.

Create in ovrseas

Your questions, answered.

A purchase order is issued by the buyer BEFORE goods are shipped, authorizing the purchase. An invoice is issued by the seller AFTER goods are shipped, requesting payment. The PO comes first and the invoice references it.

A purchase order becomes a legally binding contract when accepted by the seller. The acceptance can be explicit (signed acknowledgment) or implied (by shipping the goods). Until accepted, it is an offer to buy.

Essential elements include: PO number, date, buyer and seller details, product descriptions with quantities and prices, total amount, delivery date, shipping terms (Incoterms), payment terms, and authorized signature.

The PO number is a unique identifier that links all related documents throughout the transaction. It appears on invoices, packing lists, shipping documents, and payments, making it easy to track and reconcile orders.

Yes, you can issue a revised PO or a change order before the seller ships. After acceptance, any changes require mutual agreement. Always clearly mark revisions and reference the original PO number.

Common import terms include FOB (seller delivers to port), CIF (seller pays freight and insurance), or DDP (seller delivers to your door). Choose based on who handles shipping and customs responsibilities.

Yes, always include payment terms such as advance payment percentage, payment on shipment, or net payment days. Clear terms prevent disputes and help both parties plan cash flow.

A blanket PO authorizes multiple deliveries over a period (e.g., quarterly shipments for a year) at pre-agreed prices. It simplifies repeat orders and often secures volume discounts.

A quotation is issued by the seller offering to sell at certain terms. A purchase order is issued by the buyer agreeing to buy. The PO typically references the quotation number to show which offer is being accepted.

Yes, an authorized signature makes the PO official and binding. For companies, ensure the signatory has purchasing authority. Some organizations require dual signatures above certain amounts.

Yes, you can create purchase orders for free on ovrseas. Our platform helps you generate professional POs and manage your international procurement documents in one place.

Use a consistent PO numbering system (e.g., PO-2025-001) and maintain a log of all issued POs. Track status from issued → acknowledged → shipped → received → paid to manage your procurement effectively.

Purchase OrderTemplate

PURCHASE ORDER