Purchase Order template

Free purchase order template

For businesses that allocate funds from a budget, a purchase order (PO) serves a dual purpose. Internally a PO acts as a spending control against that set budget, while externally the purchase order is the buyer's official request for initiating a purchase from a seller for goods or services. It  serves as a binding agreement and helps prevent misunderstandings between the buyer and seller. A purchase order can also be used by businesses to track orders and confirm deliveries by referencing the PO number. 

Docusign’s standard purchase order form is an easy-to-use template that outlines the specific items, quantities, prices, shipping fees, payment terms and other pertinent details of the transaction. The good news is that our PO template is free – all you need is a Docusign account.

Once you’ve edited the details to fit your specific purchase order, you can download, print, or send it directly through Docusign for secure approval. Get started with Docusign today to efficiently manage your purchase orders and keep your business operations running smoothly and on budget.

What is a purchase order?

A purchase order (PO) is a formal document a buyer sends to a seller to confirm an order. It includes details like the products or services requested, quantities, pricing, delivery schedule, and payment terms. Businesses use POs to create a written record of agreed-upon terms, helping reduce disputes and maintain accurate financial records. Purchase orders can also assist in inventory tracking and budgeting.

When do you need a purchase order?

You need a PO whenever you want to document and approve a purchase before it’s fulfilled. Examples include:

• Large or recurring vendor orders

• Purchases with specific delivery timelines

• Orders where scope, price, and terms must be confirmed before work starts

The U.S. Small Business Administration recommends using purchase orders as part of a strong internal control process to prevent unauthorized spending and keep clean records.

What is included in a purchase order?

To be legally enforceable, a purchase order should include the following parts:

1. Identification information

• Purchase order number: A unique identifier for tracking and reference.

• Date of issue: The date the purchase order is created.

2. Party information

• Seller information: Name, address, contact person, phone number, and email of the supplier or vendor.

• Buyer information: Name, address, contact person, phone number, and email of the purchasing company.

3. Shipping and billing details

• Ship to: Name and address of the recipient where goods are to be delivered, and expected delivery date.

• Bill to: Name and address for billing purposes.

4. Order details

• Item description: Detailed description of each item or service to be purchased.

• Quantity: Number of units for each item.

• Unit price: Price per unit of each item.

• Total price: Calculated total for each line item (quantity multiplied by unit price).

• Subtotal: Sum of all line items.

• Tax information: Applicable taxes, if any.

• Shipping and handling: Costs associated with shipping and handling.

• Total amount due: Overall total amount payable.

5. Terms and conditions

• Payment terms: Conditions regarding when payment is due (e.g., net 30 days).

• Delivery terms: Specific delivery conditions (e.g., FOB Shipping Point/Destination).

• Returns policy: Conditions under which goods can be returned.

• Warranty information: Details of any warranties provided by the seller.

• Governing law: Jurisdictional law that governs the purchase order.

• Dispute resolution: Method for resolving any disputes (e.g., arbitration or litigation).

6. Acceptance clause

• Statement that the purchase order constitutes an offer to purchase and acceptance is limited to the terms and conditions stated.

7. Authorized signature

• Signature line for authorized personnel to validate the purchase order.

Who creates a purchase order?

The buyer — often a procurement team member or department head — drafts the purchase order. The seller reviews and accepts it, making the PO legally enforceable.