4 Free Purchase Order Templates with a Step‑By‑Step Guide: Excel, Word, and Google Sheets Format

Purchase orders (PO) are essential tools for businesses. They help streamline the procurement process by providing a structured format for buying and selling goods or services.

Ready-made PO templates ensure consistency, accuracy, and clarity in transactions. They include crucial details like item descriptions, quantities, prices, delivery information, and payment terms. They play a vital role in maintaining a smooth and accountable purchasing workflow.

Here we offer you a free premade template of a purchase order. We will learn how to prepare it for sending to the supplier with the example of Mr Chopra’s company.

Kladana’s Free Basic Purchase Order Template

A standardized purchase order template can ensure clarity and consistency in a company’s ordering process, and make internal and external communications smoother.

To assist you in keeping your procurement processes in order, we are pleased to offer a free, user-friendly purchase order templates that can be tailored to your specific needs. Read on to discover the benefits of utilizing unified purchase orders and take the first step towards enhancing your company’s procurement efficiency.

In addition to a purchase order, we offer a free warehouse receiving checklist. It’s essential for processing purchases and managing supplier operations. Easily verify the quantity and quality of received items, compare prices, and assign storage bins for proper product storing. Fill in the form below to receive the checklist and a promo code for a 30‑day trial (instead of the standard 14 days). Don’t miss out on this opportunity!

How to Use Free Template in 8 Steps

Step 1. Make a Copy of the Template

Go to File menu → Make a copy → Rename the document the comfortable way

Step 2. Input Your Company Details

Carefully fill in the full address of your company, its email address, and a phone number.

Step 3. Indicate a Purchase Order Number and Date

Make sure to give a PO a unique combination of number and date to avoid confusion in the future. Consistent numbering and date indication will help you to keep your records on purchases in order.

Step 4. Add Supplier Details

Fill in the address and contact details of your counterparty.

Step 5. Record the Delivery Address

If your company address corresponds to your shipping address, and you’re sure you won’t have new warehouses or other new shipment areas in the future, you may delete this section. In the ATTN section write down the name of the person in your company responsible for procurement/goods and services import.

Step 6. Fill in the Information on Payment, Delivery, and Documents

By specifying this information, you can always compare your orders with the corresponding contract, and check the prices and delivery conditions. In the Order field, you can indicate the order number or name if you use them for better identification and classification.

Step 7. List the Products you Intent to Order, Specify Quantity & Price

Before saving and sending your PO make sure that the formula used to calculate the amounts works correctly.

Step 8. Add the Cost of Delivery, Taxes and Other Costs if Necessary

Bonus

You can change and use the template for what you need. If you want to make your purchase processes easier and solve business tasks quicker and better, go to the last sheet of the form and try Kladana ERP.

Explore Kladana customer stories and blog articles. Ask for a demo to learn about the features, and give our 14‑day free trial a go.

Tips for Using a Ready‑to‑Use Purchase Order Template

If you choose to use a premade PO template you should aim at making it as useful and informative as possible. Check out our tips that can help you:

Adjust It

Tailor the template to match your business requirements, customizing fields and categories to accurately represent the products or services you commonly procure.

Maintain Consistency

Ensure uniformity in format and terminology across all POs to enhance clarity and avoid confusion with vendors and employees.

Update It

Periodically review and update the template to accommodate changes in your purchasing workflow, shipment information, or any evolving business needs.

Input Comprehensive Product Details

Include detailed information for each item, such as quantity, unit price, and specifications, to prevent discrepancies during the procurement and invoicing processes.

Educate Your Team

Familiarize your team with the correct usage of the template. Promote consistency and adherence to established processes for a more organized and efficient purchasing system.

Examples of Purchase Order Templates for Different Businesses

We have customized a basic PO template for the needs of different businesses to show you how to adjust the document to specify exactly those goods and services you need to procure.

PO Template for Construction

Here is an example of PO that can be used in the sphere of construction and other businesses that procure materials and time-based services. This is what the core part of the template looks like:

PO Template for Fabric Procurement

If you buy fabrics, you can specify the yarn type, choose the width of pieces of fabric, and add the information about finishing and dye type.

PO Template for Buying Garments

To keep your garment procurements in order and to avoid errors you can add columns for color or design details and sizes indication.

What Is a Purchase Order Template

A Purchase Order is a crucial document in the procurement process. It outlines the details of a transaction between a buyer and a seller. To streamline and standardize this essential part of operations, businesses often use templates.

These templates help companies take into account all necessary information, reduce errors, stick to the right terms, and maintain a consistent record-keeping system for their orders. This standardized approach not only facilitates seamless communication between the buyer and the supplier but also ensures compliance with internal processes and regulatory requirements.

The PO template acts as a blueprint for successful transactions. It provides a structured framework to manage and track orders effectively.

What Are The Types of Purchase Order Templates

When it comes to streamlining the procurement process, businesses can benefit from various types of purchase order templates tailored to their specific needs.

Standard purchase order

The most common type of POs. It includes goods and services details, quantities, prices, payment and delivery terms. These orders are usually used for one‑time purchases.

Blanket purchase order

A blanket PO encompasses several potential orders into a single one. It’s used to negotiate discounts with the vendor. Sometimes goods details and the total quantity are indicated here without prices.

Contract purchase order

A contract PO ensures maximum legal protection. At first, the counterparties agree upon terms and conditions. Product details and quantities are to be discussed later. This PO acts like a letter of intent, indicating that the buyer will procure goods in the future.

Scheduled Purchase Order

When creating a scheduled purchase order, a purchaser forecasts their upcoming requirements and pre‑submits the PO.

In this category of purchase order, a majority of the order particulars, such as the item, price, and payment terms, are already identified. However, the specific delivery dates remain uncertain. The buyer is pledging to the agreed‑upon price and quantity but is not obligated to a fixed delivery timetable.

Benefits of Purchase Order Templates Automation

The implementation of ready‑to‑use PO templates can significantly enhance the efficiency and accuracy of order management processes for businesses. One of the key benefits is the reduction of human errors, as automation minimizes the likelihood of data entry mistakes and discrepancies.

Purchase order automation prevents duplicating orders. POs help a company keep track of orders and who they’re from. It can be hard to match invoices for similar items. The purchase order serves as a check to cover unpaid bills.

With the help of standardized PO templates, businesses can ensure consistency in order documentation, streamlining communication with suppliers and internal departments. Moreover, automation expedites the entire procurement process, from order creation to approval and fulfillment, leading to faster and more reliable transactions.

This not only improves overall productivity but also helps businesses build stronger relationships with their suppliers through timely and accurate orders and monitor the responsibility of those who sign orders. Furthermore, PO templates provide a centralized system for tracking and managing orders, offering real‑time visibility into the status of each transaction.

Overall, the adoption of automated Purchase Order templates contributes to a smoother and more error‑free procurement workflow that optimizes business operations and enhances customer satisfaction.

Basic Steps of Purchase Order Process

There are eight steps you need to follow.

Buyer Checks Goods Availability

Before initiating a purchase, the buyer should ensure that the seller possesses the needed quantity of goods or services in their inventory. The buyer also checks current stock levels to prevent future overstocking.

Buyer Creates a Purchase Order

After confirming goods & services availability, the buyer generates a Purchase Order. The document outlines the specifics of the transaction, including item details, quantity, agreed-upon prices, and delivery timelines. PO serves as a formal request for the desired products or services.

PO Is Checked and Approved

The created PO undergoes a thorough review and approval process within the buyer’s organization. This stage involves verification of accuracy, compliance with internal policies, and confirmation that the purchase is carried out according to budget capacity.

Buyer Sends PO to Seller

After the internal review, the approved PO is transmitted to the seller. This stage initiates communication and formally signals the buyer’s intent to proceed with the transaction.

Seller Reviews PO

The seller evaluates the received PO and checks if there’s enough to fulfill the order. They assess the terms and conditions and make sure the details match the agreed‑upon terms during negotiations.

Seller Accepts PO

After a thorough evaluation, the seller accepts the PO. It indicates their commitment to fulfilling the order as specified. This stage may arise additional communications, such as confirmation of delivery schedules or any other necessary adjustments.

Goods or Services Execution

With the accepted PO in hand, the seller proceeds to execute the delivery of goods or services according to the agreed-upon terms. This stage is critical for ensuring that the buyer receives exactly the products or services they ordered on time.

Buyer Pays Invoices

After successful delivery and confirmation of receipt, the buyer processes the associated invoices for payment. Timely payment is essential for maintaining positive supplier relationships and a smooth procurement cycle.

Qualities of an Effective Purchase Order Template

A well‑designed purchase order sheet is a crucial tool for efficient and organized business transactions. A good purchase order template should be clear, concise, and comprehensive, providing essential details for both the buyer and the seller.

The document should include the following information:

• Header with the name of the document (Purchase Order), information about the issuing company
• Order date & number
• The details of the seller and/or supplier
• Shipping information and delivery terms & conditions
• Goods and/or services descriptions, quantity, prices, amounts

A well‑organized layout with designated sections for each key piece of information ensures clarity and reduces the likelihood of errors.

Additionally, a good template should be easily customizable to suit various industries and businesses and allow for adaptability to specific needs. With a user‑friendly design, a PO template streamlines the procurement process, facilitates accurate record‑keeping, and promotes transparency in transactions.

How To Make a Purchase Order Template from Scratch

Knowing the stages of a PO process you can easily create a document that takes into account your company’s needs. You may use this simple checklist.

Indicate Company Information

Fill in all your company details that may be important for the delivery of goods or services. Indicate the company name, telephone number, business address, and other postal details. It is better to do this in the document header so that this important data is easy to find.

Specify the PO Unique Data

Indicate the date and the number of the Purchase Order. The order numbers shouldn’t be repeated to avoid confusion.

Enter the Supplier’s Details

Add postal and other details of the company that supplies you with the goods or services mentioned in this order.

Indicate the Delivery Address

Make sure all the information is transferred to the document so nothing hinders the delivery of goods or services.

Fill in Shipping Information

Add the shipment and payment terms, shipment method, and approximate delivery date.

Specify the Product Information

Include a different line item for each good or service needed. Indicate its item or SKU number, name or description, the number of units ordered, the cost per unit, and the net amount.

Do the Calculations

Compute the subtotal, which is a comprehensive summary incorporating applicable discounts, shipping costs, VAT, or other taxes, and a final total to verify the fulfillment of the order.

How to Send a Purchase Order to Partners

Let’s explore the options for sending a purchase order, whether you’re a buyer or a vendor/supplier.

If You Are a Buyer

If you plan to send your supplier or vendor the finalized Purchase Order that doesn’t need any modifications, it’s recommended to transmit it via email with a PDF version of this document.

You can easily transform your spreadsheet from Excel and Word to a PDF. Just click the Save As button and opt for PDF in the drop-down list.

If you are working with Google Sheets go to the File menu and choose Download As and then PDF Document (pdf.) in the list.

If You Are a Vendor or Supplier

If you sell or ship goods you may have the intention to share the premade PO template that includes your address and other details that may be crucial for a successful shipment. In this case, you can add the information to the Google Sheets file, make a copy of the document, and send the link to the buyer.

Frequently Asked Questions on Purchase Order Template

Learn what information should be included in a purchase order and how to utilize and customize the purchase order template effectively.

What Is a Purchase Order?

A purchase order is a legally binding document issued by a buyer to a seller, indicating the type, quantity, and agreed-upon price of products or services. It serves as an official confirmation of the purchase and outlines the terms and conditions of the transaction.

Why Are Purchase Orders Important?

Purchase orders play a crucial role in establishing a clear and documented agreement between the buyer and seller. They help prevent misunderstandings, ensure accurate order fulfillment, and serve as a reference point for tracking and auditing transactions.

How Does the Purchase Order Process Work?

Typically, the buyer initiates the process by creating a purchase order and sending it to the seller. Upon receiving the PO, the seller acknowledges the order, processes the request, and fulfills the delivery. The buyer then verifies the received goods or services against the details specified in the purchase order.

What Information Should Be Included in a Purchase Order?

A comprehensive purchase order should include essential details such as the item description, quantity, unit price, total cost, delivery date, payment terms, and any specific terms and conditions agreed upon by both parties. Accurate and complete information helps in avoiding discrepancies and disputes.

Can a Purchase Order be Modified or Canceled?

Purchase orders can be modified or canceled under certain conditions and with mutual agreement between the buyer and seller. Changes may involve adjustments to quantity, specifications, or delivery dates. However, it’s essential to communicate any modifications promptly and ensure both parties agree to the amendments to maintain a transparent and efficient procurement process.

What Is a Purchase Order Template?

A PO template is a pre‑designed document that facilitates the easy creation of purchase orders. It typically includes essential fields such as product or service details, quantity, pricing, and vendor information.

How Do I Use a Ready‑To‑Use Template?

Using a purchase order template is straightforward. Simply download the template, fill in the required information, and customize it to match your specific transaction details. This ensures a standardized and professional approach to your purchasing process.

Are These Templates Customizable?

Yes, most purchase order templates are customizable to meet the unique needs of your business. You can modify fields, add your company logo, or include specific terms and conditions, allowing for flexibility while maintaining a consistent format.

Can These Templates Be Used with Different Software?

PO templates are often compatible with popular software like Microsoft Excel, Word, or Google Sheets. This ensures compatibility across various platforms, making it convenient for users regardless of their preferred software.

Do I Need Any Special Skills to Use These Templates?

No specialized skills are required. Purchase order templates are designed to be easy to use, even for those with limited experience in document creation. With a basic understanding of the procurement process, anyone can efficiently use these templates to generate professional-looking purchase orders.