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Purchase Order Template

Here's what you'll find in the Purchase Order:

  • A contract template for documenting a purchase between a buyer and a seller
  • Tips for sellers on things to include on a Purchase Order, mistakes to avoid and general resources which may be helpful
  • Advice on getting contracts signed quickly, digitally, and legally
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Purchase Order Template

A purchase order is a critical document for businesses. It is a simple form that documents the specifics of a purchase between a buyer and a seller.  What is in the Purchase Order Template?

  • A universal purchase order template that is ready to customize.
  • Easy tips to apply when drafting a purchase order form.
  • The benefits of ApproveMe’s templates for your small business.
  • Other names for a purchase order include a sales invoice or purchase receipt. 

The Importance of a Purchase Order A purchase order is an essential document for businesses across the nation. A purchase order is exactly how it sounds. The form documents the details of a buyer’s purchase. It is similar to a receipt so that both parties are on the same page in reference to the order. Purchase orders can also help you manage your company’s inventory and finances.  Key Components of a Purchase Order  A purchase order should be detailed and consist of all order information. The most important elements in a purchase order are:

  • Company Name – Who is the purchaser? The buyer’s contact information, such as the address and phone number. Sometimes a company will have a different address for shipping. Therefore, it is important to list the shipping address. 
  • Purchase Order Number – This is the order’s designated number. It is critical to assign a purchase order number (PO Number) for each order. This keeps track of all purchases and the respective details of the order.
  • Contents of the Purchase & Order Details – This includes a breakdown of each item. Each item should consist of the quantity of that item (number of items), a description, the unit price, and the payment terms.
  • Total Amount Due and Shipping Details – It is vital to confirm State tax laws to ensure the appropriate sales tax is applied. The purchase order should detail the subtotal, sales tax, and the shipping cost. It is also a good idea to include shipping information such as the carrier. 
  • Special Instructions – If there are any notes or specific instructions related to the purchase order, they should be included in the purchase order.

Common Mistakes Found in Purchase Orders Purchase orders evidence the order’s contents, the total amount due, and the purchaser’s information. If important elements of a purchase order are excluded, such as the quantity, appropriate item description, it can lead to confusion and the hassle of litigation. A purchase order is proof of the agreement between the parties. Another common mistake is leaving out the order date. Commercial laws can be tricky. It is critical to contact an attorney when drafting essential documents for your business.  ApproveMe’s Template Solution  ApproveMe wants to see your business succeed! ApproveMe’s template bank is full of templates to suit your company’s needs. Check out more templates here! Did we mention we have a state of the art signature tool? That’s right! We help you obtain legally binding digital signatures on your important business documents.  Helpful Inventory Tools It is important to keep purchase orders for your records. Purchase orders can help track the company’s inventory and document sales. Inventory management is crucial. Here are a few helpful tools to check out: 

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Purchase Order

Company: ________________________                P.O. # ___________________ Address: _________________________                Date: ____________________ _________________________________ Phone: ___________________________   Name/Company: ______________________________            Shipped Via: _____________ Shipping Address: ____________________________            Delivery Date: ____________ _____________________________________________ Phone: __________________________

Quantity  Item Description Unit Price Total


Sales Tax
Total Amount Due

F.O.B. Point _________________________ SPECIAL INSTRUCTIONS: __________________________________________________________________________________________________________________________________________________________________________

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The contents of ApproveMe are intended to convey general information and provide starter templates. The material on this site is for informational purposes only and does not provide legal advice or opinions. The contents of ApproveMe and the posting and viewing of information on this website should not be construed as legal advice or legal representation.

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