Purchase Order Template
A purchase order is the buyer's written commitment to a price and scope. Matched to your invoice, it removes the 'we never agreed to that' dispute.
What's included
- Issue or request a PO that commits the buyer in writing
- Match PO, delivery and invoice for clean three-way checks
- Capture quantities, prices and delivery terms precisely
- Reference the PO on the resulting invoice
- Reduce disputes by agreeing the order before supply
6 min read
Why this template matters
A purchase order is the buyer putting their commitment in writing: this is what we are ordering, at this price, on these terms. For a supplier, an accepted PO is gold — it is the customer agreeing to pay before you deliver, which makes the later invoice almost impossible to dispute on scope or price. For a buyer, it is control: nothing is ordered without an authorised PO behind it.
POs also enable the 'three-way match' that keeps larger accounts honest: the PO (what was ordered), the delivery docket (what arrived), and the invoice (what is billed) should all agree. When they do, the invoice is approved on autopilot. When they do not, the mismatch is caught before money moves.
The template
PURCHASE ORDER [Buyer trading name] ABN: [11 22 333 444] PO number: PO-0501 Date: 14 March 2026 Supplier: [Supplier name] Deliver to: [Delivery address] Required by: 21 March 2026 ------------------------------------------------------------ Line Description Qty Unit price Amount ------------------------------------------------------------ 1 [Item / service] 10 90.00 900.00 2 [Item / service] 1 150.00 150.00 ------------------------------------------------------------ Subtotal (ex GST) 1,050.00 GST (10%) 105.00 TOTAL (inc GST) 1,155.00 ------------------------------------------------------------ Terms: Payment Net 14 from valid tax invoice. Please quote PO-0501 on your invoice and delivery docket. Authorised by: ______________ Date: __________
How to use it
Whether you issue POs as a buyer or receive them as a supplier, the discipline is the same: every PO carries a unique number, an authorising signature, and exact quantities and prices. The instruction to quote the PO number on the invoice and delivery docket is what makes the three-way match work — without it, matching is manual guesswork.
As a supplier, capture the PO number when you take the order and put it straight onto the resulting tax invoice; it routes your invoice through the customer's approval process faster and pre-empts the 'we never ordered that' line. As a buyer, never let a supply proceed without an authorised PO, so your spend stays controlled and your invoices always have something to match against.
PO, quote and invoice together
These documents form a chain. Your quote offers price and scope; the buyer's PO accepts and commits to it; your invoice bills against it. When all three reference each other — quote number on the PO, PO number on the invoice — any one document can be reconciled against the others in seconds, and disputes have nowhere to hide.
For ongoing supply, a PO can also be a 'blanket' or standing order covering a period or value, drawn down by individual deliveries. However you use it, the principle holds: the order agreed in writing before supply is the strongest possible foundation for the invoice that follows. This is general business information about commercial practice.
Tips
- An accepted PO commits the buyer before you supply — making the invoice hard to dispute.
- Quote the PO number on the invoice and delivery docket for a clean three-way match.
- As a buyer, let no supply proceed without an authorised PO.
- Link quote, PO and invoice by reference so any one reconciles the others.
FAQ
What is a 'three-way match'?
Checking that the purchase order (what was ordered), the delivery docket (what arrived) and the invoice (what is billed) all agree. When they match, the invoice is approved automatically; when they don't, the error is caught early.
Should I quote the PO number on my invoice?
Always, if the buyer issued one. It routes your invoice through their approval process faster and pre-empts any 'we never ordered that' dispute. Put it on the delivery docket too.
Is a PO the same as a contract?
A PO is the buyer's written commitment to an order and, once accepted, generally forms part of the agreement on scope, price and terms. For complex or high-value work, a fuller contract may still be appropriate.
Templates are a head start — not legal advice
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