What is a Purchase Order or PO?

A Purchase Order or PO is a formal document between the buyer and seller and contains the list of items to be delivered. It is typically sent by the buyer to order items and contains the details of the product quantity, agreed price, delivery date and other terms. 

Creating a purchase order starts with a potential buyer identifying a vendor who sells goods or services. Once the seller is shortlisted, the buyer lists out the type of product, quantity, and when it’s required. Next, the buyer drafts a purchase order with all the information and sends it to the vendor for approval. Once the seller receives the PO, he checks the product’s availability and approves or rejects it based on whether or not he can fulfil the order. 

If the seller approves the request, he must deliver the goods as agreed upon. The seller sends an invoice with the amount indicated on the PO. It contains the information of the products, quantity, price, etc. Then, the buyer has to make the payment as per the payment terms mentioned on the purchase order.

This is how a typical purchase order works. Let’s also know the essential components of a purchase order, how to create it in Word, Excel, and PDF and about the online tools that help generate purchase orders in quite less time. 

Try myBillBook’s Free Purchase Order Generator 

Downloadable Purchase Order Formats in Word, Excel, and PDF are helpful for creating free purchase order formats. However, the free templates pose some challenges for businesses that create more invoices every day and for those working in a fast-paced billing environment. 

Using purchase order formats in Word, PDF, and Excel requires manual input for every invoice, which is both time-consuming and error-prone. The templates do not offer automation features like tax calculations and total amount calculations, leading to inefficiencies. Further, you need to manually save all the invoices by naming them every time in your local drive, which might lead to data loss during system crashes. 

To help you overcome these challenges with the free templates, myBillBook is offering a free purchase order generator tool. This tool makes your PO generation much easier by featuring an easy-to-use interface that enables you to create your orders in no time. You simply need to enter the required information in the free purchase order generator and click on ‘Generate PDF’ to download it. You can share the downloaded PO with the vendor directly through Whatsapp or email.

Our free Purchase Order Generator is designed for small and medium businesses looking to generate POs online. It’s completely free and user-friendly. Moreover, any information you enter in the generator is not stored anywhere. Hence, you can rest assured about the safety and security of your data. 

Try our free purchase order generator today and start creating POs that look professional and error-free.

Main Elements of a Purchase Order Format or PO Format

Every business follows a unique format of the purchase order. Some might create purchase orders on their own using available tools like Word, Excel, or PDF, and some use online software to generate one. No matter what kind of tool businesses use, the main elements of the purchase order should be included. Here is the list of the aspects that need to be included in the purchase order. 

• Billing Address
• Shipping Address
• Vendor/Seller information
• Voucher details
• Voucher number
• Date
• Mode of payment
• Supplier’s ref no/order number
• Mode of delivery
• Destination
• Delivery terms
• Order Details
• Product details
• Quantity
• Price
• Total amount (including taxes)
• Due date of delivery
• Payment Terms and Conditions
• Other details

For businesses in construction, retail, or other sectors, using a comprehensive billing software for hardware shop can streamline purchase order generation, invoicing, and other financial operations, ensuring better accuracy and efficiency.

Purchase Order Format or PO Format in Word

• Open MS Word, click ‘File > New Document’
• Click on ‘Insert > Header’
• Choose the Header format, which allows you to insert the purchase order heading (on the left) and the business logo (on the right). 
• In the next line of the header, add Date (on the right), Order number (in the centre), and company name and contact details (on the left).
• Right below the header field, on the right side, insert customer name and contact details under the header – ‘Invoice To’ 
• Next comes the purchase details fields. Based on your business requirement, include fields like product description, quantity, unit price, discount, total price, etc. You can also use a table to represent this data. 
• Leave multiple fields empty to enable data entry. 
• Below the table, to the right, include fields for sub-total, tax, discount, and total amount.

Purchase Order Format in Excel

• Open Microsoft Excel.  Select ‘File > New >Blank WorkBook’ 
• Remove the gridlines by clicking on the ‘View’ tab and then unchecking ‘Gridlines’ in the ‘Show’ section.
• Click on the ‘Header & Footer’ tab and give the header for the sheet as ‘Purchase Order’.
• In the next cell, enter your company details, including company name, address, email ID and GSTIN. 
• Create ‘Shipping To’ field to enter customer details like name, company name, address, email ID, and GSTIN/UN in the next cell. 
• To its right, create fields like Purchase Order No., Date, Due Date, Terms, etc. 
• Create the ‘Goods or services’ section to enter data, including name of the product/service, quantity, tax rate, discount, unit, total amount, etc., as per your business requirement.  
• At the bottom of the page, provide your bank details and other payment modes like UPI bar code, UPI ID, or UPI phone number. 

You can also insert some excel formulas to auto-populate the cells when creating purchase orders. For instance, the ‘Date field’ can be auto-filled with the current day’s date using the formula =TODAY(). 

Purchase Order Format in PDF

Both PO order template in Word and purchase order format in Excel can be downloaded in PDF form. If you want to create everything from scratch in the PDF itself, you can simply copy and paste the details from the purchase order template in word to the PDF and save it. Whenever you would like to send a purchase order, you can

Purchase Order Format in PDF

Both purchase order format in Word and purchase order format in Excel can be downloaded in PDF form. If you want to create everything from scratch in the PDF itself, you can simply copy and paste the details from the purchase order format in word to the PDF and save it. Whenever you would like to send a purchase order, you can simply make a copy of the PDF format, fill it and send it to the buyer.

Sample Purchase Order Template

A sample purchase order template offered by myBillBook enables users to create a purchase order in a few easy steps. A sample PO order template contains all the required information that a seller might require to provide details about the availability of the products.

Using myBillBook, buyers can create professional sample purchase orders that reflect the company’s brand image and simplify the quote collection process.

A sample purchase order template avoids the hassle of explaining the purchase requirements to each and every seller manually. As buyers need to approach multiple sellers with the same purchase requirements, having a simple PO order template is a handy tool to get their job done.

Buyers can fill the purchase order format with the required details using the myBillBook mobile or myBillBook desktop application and send it to the sellers through Whatsapp, e-mail or take a printout of the same.

Purchase Order Format for Machinery

A purchase order format for machinery is a simple purchase order tailored for machinery-related businesses. It allows buyers to request quotes to procure machinery and related equipment. A machinery purchase order contains the list of equipment and quantity required by the buyer and is sent to the machinery supplier.

myBillBook’s purchase order template for machinery helps buyers to get multiple quotes from the sellers in simple and easy steps. It eliminates the need to explain to each and every buyer the business requirements separately. Buyers can simply fill the purchase order format for machinery once and send it to multiple suppliers. myBillBook also offers a digital signature option that makes the quote more authoritative.

A typical PO order template for machinery contains details like the buyer’s company name, address, quotation details, vendor details, machinery description and required quantities, estimated price, etc.

Pharmacy Purchase Order Format

A Pharmacy purchase order is placed to request the supply of medical-related products in the pharma industry. A Pharmacy purchase order must include regulated substances only. A pharmacy purchase order is mandatory to buy regulated medicines in the pharmaceutical industry. And the purchase must be made only from authorised personnel.

myBillBook online application provides easy-to-use pharmacy PO order formats that help buyers get quotes from various suppliers without much effort. The purchase order templates for the pharma industry are customised in such a way they are easy to use and can be sent to the supplier through various online channels.

Medicine purchasers can send the purchase orders through Whatsapp or e-mail or simply download the hard copy and use it as required.

Purchase Order Format for Software Purchase

Just like any other purchase order formats, software purchase order templates also help bulk software buyers to send purchase orders to the suppliers.

Using an online PO order format generator like myBillBook helps software buyers quickly send purchase orders to various sellers. Instead of drafting an almost similar e-mail to multiple software sellers, they can simply fill the PO order template for Software purchases offered by myBillBook and send it through various online channels, including Whatsapp.

Purchase Order Format for Solar Systems

Solar Systems retailers, wholesalers, distributors, and installers can use the solar system purchase order formats offered by myBillBook to send their interest to the solar system suppliers.

myBillBook desktop or mobile application allows the users to customise the purchase order template as per their business needs. Users can add their business logo, account details, digital signatures, and many things to make the purchase order as professional as possible.

Once the purchase order template for solar systems is filled, buyers can share it via e-mail, WhatsApp, or download it to send the hard copy to the potential sellers.

Company Purchase Order Formats

A company purchase order format is a general purchase order template that can be used by any company looking for sellers of specific products.

Using myBillBook mobile or desktop application, retailers, wholesalers, and distributors can send company purchase orders without much effort. The ease of using the application helps businesses share multiple purchase orders in a short time. This helps them get quotes quickly and continue doing their business without hassle.

Fabric PO Order Formats

A fabric purchase order template offered by myBillBook helps fabric retailers to send purchase orders to different textile wholesalers in a few clicks. They can create fabric purchase orders on the go and get quotes instantly.

myBillBook offers easy to use interface to help small and medium business owners feel comfortable with the purchase order generation process. With a few clicks, they can add their requirements to the purchase orders and send them instantly. As most of the details are common for the purchase orders, using myBillBook helps them avoid redundancy and get quotes quickly.

Purchase Order PO Format for Air Conditioners

When a company wants to buy air conditioners in bulk, they use a purchase order format for air conditioners to let suppliers know their requirements. The purchase orders in such cases typically include the type of air conditioners required, their quantity, expected delivery date, delivery type, and other details related to the order.

A company looking for bulk AC purchases must send multiple orders to various parties to get the best quotes possible. To make this process easy, myBillBook’s purchase order template for air conditioners helps businesses send orders much more efficiently in less time.

Tips To Create An Effective Purchase Order

• Always include the buyer details like the name, address, contact details, and the company logo.
• Space should be provided only to mention the delivery address. This is necessary to avoid any confusion between the delivery address and the company address. Also, the delivery address must be highlighted.
• To showcase the legal entity, the format of the purchase order must include the details of business authorisation or other information. 
• It is recommended to include the payment criteria apart from the terms and conditions. In case the payment methods are agreed upon previously, then make sure to enter that in black and white.
• Just like the payment terms, the buyer can also add information regarding the terms of delivery in the purchase order.
• To achieve the goal of the business, the buyer can specify particular clauses that state the acceptance and return of the products.

Benefits of Using Purchase Orders

Regardless of the size of the organisation, purchase orders or POs are used for several reasons in the purchasing department. Here are some of the reasons that state the need for a purchase order in a business.

1. Purchase orders set a clear expectation

A purchase order helps clarify the vendors’ needs, and both sellers and buyers can use PO when the orders are not delivered as anticipated.

2. Track & manage orders

This is official documentation that gives the details of income or pending deliveries to the procurements, finance, and operation teams.

3. Helps in budgeting

When a PO is generated, the purchasers can factor these costs into company budgets and can spend the money more wisely.

4. Legally binding document

The PO can serve as a legally binding document without a formal contract after the vendor accepts the order. This document will serve as legal protection for both vendor and the buyer.

5. Purchase orders are an essential part of audit trails

When an audit happens in the company, the auditors will look for any financial discrepancies. But when the company issues, processes, and records the purchase orders, it helps in ensuring that the company has enough documents to submit to the auditors.

6. Increases the speed of the PO process

Generating a purchase order manually will take a lot of time and effort. It can also create errors in the information written in the PO, resulting in extra work and pressure for the whole team. However, if myBillBook is used, then creating a purchase order can be done by anyone within a few minutes.

7. Enhances Productivity

When the purchase order is made quickly without any mistakes using the PO app, it helps in enhancing the productivity of the entire team. In addition, since all the purchase order details are available in myBillBook billing software, it helps the accounts departments record the transaction details quickly. Thus, the company can increase the cash flow and achieve early payment discounts.

8. Saves Money and Time

By using myBillBook, every business can reduce labour costs since an employee does not waste a lot of time making a purchase order. Also, recording the details in the book of accounts becomes quicker. Hence the employees can work more efficiently in less time, resulting in saving a lot of time and money.

9. Tracks all activities in real-time

If the purchase orders are created on paper, it becomes very difficult to track the details whenever you want. But if you are using myBillBook, you can check the details and track the order whenever you need it. Besides, all the activities currently happening can be monitored simultaneously using the app.