Free Online Purchase Order Template

Create professional purchase orders online with a free purchase order template

Streamline Purchasing Process & Generate Free Purchase Orders Online

If you’re a buyer (or client) of goods or services looking to create a purchase order on your own then use FreeInvoiceBuilder.com’s free online purchase order template to stay organized and save your time processing & making purchase orders.
Our online purchase order generator is convenient to use for both mobile & desktop users. Our template covers all the important details & required fields you need. Whether you are procuring goods for your business from a supplier or making a purchase online for yourself, our free purchase order template is here to shortcut the job of generating professional purchase orders.

Purchase Order Requirements

✔ Seller/Company’s logo

✔ A purchase order number

✔ Vendor/Seller/Supplier Information

✔ Client’s Information

✔ The name, address & contact of buyer

✔ The name, address & contact of seller

✔ Issue date of a purchase order

✔ Quantity of each product

✔ Details & description of the products & services ordered

✔ Price of the goods & services being ordered

✔ Tax Information

✔ Terms & conditions

✔ Special Notes

How to Generate a Purchase Order with the Right Format

A purchase order is a commercial document sent by the buyer or the acquirer of the services/products to the seller or supplier. If you’re running a business ordering supplies on a regular basis then using a professional purchase order template can be helpful for smooth & seamless transactions.

Using a proper format & listing the required details is crucial. Our free purchase order template is tailored for your needs so you never have to worry about the formatting, just add all the details in the editable fields & download your copy to save the hassle of writing purchase orders from scratch.

It’s always a good idea to use an online purchase order generator and create a list of the services & products, so you can copy and paste them into your template.

Create Free Purchase Order

Why do You Need a Purchase Order

If you’re making a purchase for a small/mid/large-sized organization or running a business yourself, using a purchase order can have some profound advantages for businesses as well as underlying benefits for the buyer & seller. Have a look at the benefits of using a purchase order:

✔ Easy order-tracking & keeping check of all the important info about services, products, payment terms, & delivery.
✔ Serve as a medium of clear communication between the seller/supplier & the buyer/acquirer evading any disputes or confusion.
✔ Makes your vendors’ life easier & also helps prevent audit problems.
✔ Accurate management & timely monitoring of expenses & budget.
✔ Avoid any dispute leveraging purchase orders as legal documentation to provide contractual & legal protection for the buyer & the supplier.
✔ Helps avoid any money-losing mistakes & scenarios.
✔ Control the cost of ordered goods & services within a business.
✔ Helps track the delivery, payment, & internal status of every order.
✔ Serve as a critical source of information for spend reports.
✔ Use freeivoicebuilder.com to improve your purchasing process & simplify the workflow.

Create Free Purchase Order

How Does the Purchase Order Process Work?

Purchasing for yourself or your company can sometimes be a challenging process but, using an online purchase order generator instead of manually writing up purchase orders can help simplify that. Ordering & purchasing includes more than just initiating a PO & sending it to the supplier. Let us walk you through the multiple stages of a purchase order process.

1. Purchase Order Creation: After being given the go-ahead by the company to create a purchase requisition, a document is created with the details about the required items, quantity, time & schedule of delivery, payment terms, & the budget. You’ll also need to know the vendors to whom you’ll be sending the PO.
2. Purchase Order Approval: The purchase requisition is then approved after confirming the budget and details & making sure that the PR aligns with the company’s requirements, policies & guidelines.
3. Purchase Order Dispatch: After the approval, the PO is generated & dispatched to the vendors for approval & fulfillment.
4. Binding Contract Creation: Once the PO is accepted by the vendor, a legal agreement is created between the seller & buyer, critical for resolving any disputes.
5. Delivery: The goods are delivered according to the schedule & delivery terms.
6. Invoice: A document is sent by the supplier to the buyer asking for payment of the goods/services provided.
7. Three-way Matching: Cross-checking the PO, against the invoice & products received & closing the purchase order.

Purchase Order Tips & Best Practices

✔ Build a database for vendors you’ve ordered from

✔ Create copies of every purchase order sent to a seller

✔ Use an online purchase order generator for faster approvals & tracking payments

✔ Double-check your POs for accurate information

✔ Purchase orders should be documented for future audits

✔ Reduce the excess time by using the freeinvoicebuilder.com purchase order template

✔ Build a healthy relationship with the seller by using well-drafted purchase orders

✔ Automating the PO process can optimize your workflow

✔ Avoid disputes by writing purchase orders with clear and straightforward terms and conditions

✔ Streamline inventory management by using an online purchase order generator

✔ Know the types of POs eligible for different situations

✔ Save a lot of physical paperwork using an online purchase order generator for digital POs

Purchase Order Vs. Invoice

Running a business requires you to manage multiple jobs & processes. From purchasing & ordering to billing & selling. You might have to create purchase orders & invoices for multiple business purposes. Understanding the difference between them & using them to streamline your workflow can help you to stay on top of your business.

Purchase order & invoice are commercial documents established to initiate, authorize, & conclude distinct business transactions. A purchase order is initiated when a buyer wants to make a purchase of certain goods & services and a PO confirms the order by stating multiple details & terms about the items, quantity, pricing, delivery, & payment. Purchase orders not only serve as a contract between the buyer & the seller but also help manage payments & simplify conditions.

Invoices on the other hand are used by sellers & service providers after the conclusion of a transaction & requesting to get paid for the goods/services provided. Invoices mainly include the information about the products/services provided, their individual costs, no. of hours worked, payments terms, & due date. Unlike purchase orders invoices are sent after the delivery of goods/services for payment & can also be used for keeping a record of your earnings & finances.

Create Free Purchase Order

Types of Purchase Orders & Their Use-Cases

Standard Purchase Orders: The most commonly used type of purchase orders for one-time purchase situations where details for the purchase like the item(s), price, delivery schedule, quantity, and payment terms are known.
For Example, A store writing up a purchase order for buying shelves & stationery knowing the exact items & their quantity, price, place, time & duration of delivery, & the payment terms.

Planned Purchase Orders: A planned purchase order is initiated considering the future requirements of a company, business, or individual. A PPO contains info about the products & services being ordered, pricing, quantity & payment terms. The payment and delivery dates & schedules are unconfirmed & tentative. A release is created against the PPO after confirming the dates of delivery.
For Example, A store needs 6000 stationery items over the course of a year. So, a PPO will be created with a tentative delivery/shipment schedule of 500 items shipped every month. A release will be created to confirm the delivery date & location for the products to be finally shipped or delivered.

Blanket Purchase Orders: BPOs are used for situations when a requirement for products & services needs to be met but the quantity & time of delivery is not confirmed at that time. The pricing & payment terms may not be included either. Blanket Purchase Orders are often referred to as “standing orders”. BPOs offer the opportunity of negotiating discounts by placing several orders of a specific item at once.
For Example, A restaurant using unique crockery sets might initiate a blanket purchase order with a supplier for an undecided quantity & delivery time. Then the restaurant can create a release after the occurrence of an uncertain situation of broken or damaged crockery & have the products shipped to them.

Contract Purchase Orders: A Contract Purchase Order works as a contract agreement between a buyer & supplier and also serves as a legally binding reference for the ensuing SPOs. CPOs can be initiated before even deciding on what to buy & exclusively include the terms & conditions for the procurement & supply of products. A termination or validity date may be set by the parties involved.
For Example, A CPO between a buyer and supplier can be established on the terms & conditions which include the seller offering a 30% discount on multiple orders of a specific item & the buyer sending an advance payment for the orders exceeding a certain amount. CPOs enable an efficient purchasing process & continuing business relationships.

Other Free Tools from FreeInvoiceBuilder

FreeInvoiceBuilder includes a range of customizable templates, including invoices with adjustable Tax(VAT) rates and currencies. It also includes invoice templates for specific industries and services. Our free tool is ideal for international merchants, freelancers, and independent contractors. Just customize the free printable templates and download your copy in PDF format. You can also generate other commercial documents like receipts, quotations, estimates, & proforma invoices.

FAQs

Will my clients see “FreeInvoiceBuilder” on the purchase order?

Never, although our purchase order generator is entirely free of cost, the generated purchase orders are completely unbranded.

Can I add my logo to personalize the purchase order template?

You can easily drag or select your logo to the top left corner of the purchase order template and brand your business seamlessly.

Can I choose between different currency options?

Yes, FreeInvoiceBuilder provides you the option to choose any currency you trade in to create the purchase order with an accurate price.

Can I make a PDF purchase order?

Yes, even if you don’t have a registered account, our purchase order generator offers a ready-made template to customize and instantly download the PDF copy or save the information to use later.

How do I send a purchase order?

Send the created PDF purchase order electronically or print it. You can also share the link to your purchase order so your client can download or print the purchase order directly.