A purchase order (PO) is the buyer's formal commitment to buy specific goods or services from a supplier at agreed prices and terms. Issuing a proper PO creates an auditable record, controls spend and prevents disputes over what was ordered. This free Excel template calculates line totals, subtotal and grand total automatically, so you can raise an accurate, professional PO the moment a quotation is approved.
Why use a purchase order
A purchase order turns a verbal or emailed agreement into a controlled, documented commitment. It confirms exactly what is being bought, at what price and on what terms — which protects both buyer and supplier if there is a later dispute.
POs are also the backbone of spend control. Requiring an approved PO before goods are ordered stops maverick buying and gives finance a clear line of sight over committed spend.
How to use this purchase order template
Complete the template once a quotation has been approved:
- Enter the PO number, date, and your billing and delivery addresses.
- Add the supplier's details and the payment terms you agreed in the RFQ.
- List each item with quantity, unit price and any discount — line totals calculate automatically.
- Add SST/tax and shipping; the grand total updates on its own.
- Route the PO for authorisation, then send the approved copy to the supplier.
Purchase order best practices
Give every PO a unique number and reference the approved quotation so the audit trail is complete. Never let goods be ordered without an approved PO except for pre-agreed low-value or emergency purchases. Keep the PO, the quotation and the delivery note together for three-way matching before you pay the invoice.
Download the Purchase Order (PO) Template
Free, editable Excel (.xlsx). Complete the form above and your download starts instantly.
Common questions
What is a purchase order template?
A purchase order (PO) template is a reusable form for issuing a formal order to a supplier — capturing items, quantities, agreed prices, tax, delivery details and authorisation in one document.
Does the purchase order template calculate totals automatically?
Yes. The Excel template includes formulas that calculate each line total, the subtotal and the grand total (including tax and shipping) as you fill it in.
Is the purchase order template free to use?
Yes. Enter your work email above and the editable Excel file downloads immediately, free of charge.
What is the difference between an RFQ and a purchase order?
An RFQ asks suppliers to quote a price. A purchase order is issued after you accept a quote — it is your binding instruction to supply at the agreed price and terms.
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