Free Purchase Order Template and Purchase Order Log for Small Businesses
Download our free purchase order template to create and manage orders to suppliers, along with a purchase order log template to track orders, deliveries and outstanding purchases
A small business can use a purchase order template to order goods or services from a supplier, particularly when buying in bulk or on credit. A purchase order (PO) confirms what the business wants to buy and includes details such as quantities, prices, delivery dates and contact information.
The purpose of a purchase order is to ensure that both the buyer and supplier understand the agreed terms before completing the purchase. It helps prevent misunderstandings about prices, delivery arrangements, and the goods or services ordered.
A purchase order spreadsheet helps you include all the necessary information and saves time when placing orders. Our free Excel template provides a ready-made format that you can adapt to suit your business.
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Purchase Order Procedures
If you are new to purchase orders or need more information, start by reading our section on what a purchase order is. The page includes standard procedures for issuing a new order to a supplier and the needed process.
A purchase order is a form between a buyer and a seller that sets out the terms for goods or services. The buyer creates the documents and sends them to the seller. The seller confirms whether they accept the order or need any amendments.
Purchase Orders and Accounting Software
Using accounting software such as Sage UK, QuickBooks, and Xero to produce purchase orders can significantly streamline the purchasing process for businesses of all sizes. These software programs make it easy to create and track purchase orders and integrate with inventory management systems.
This means businesses can quickly and accurately generate purchase orders based on current inventory levels, ensuring they have the supplies needed to meet customer demand.
Purchase Order Format
A purchase order should include a few key details. The most important items are your business details, supplier details, PO number, order date, shipping information, expected delivery date, description, and value.
The more information in the purchase order, the better; you can also add notes in the description or an email.
Free Purchase Order Template UK – Instructions
- Download the free PO template – the link is at the bottom of the page.
- Save the template to either your hard disk or the cloud.
- Enter your business information, including company name, address and telephone number.
- If the delivery address is always the same, enter it now.
- You now have a template to use time and time again.
- If you do not have autosave enabled, save the Excel document again; it is the template you will use for all the orders.
Example Purchase Order
Below is an example of our business template.
Purchase Order Form Template Excel Instructions
- When you start a new purchase order, save the template as a different file name. If you use lots of purchase orders, use the PO number, perhaps followed by the supplier name.
- Choose a numbering system; never start from one. For example, use the year followed by a number.
- You are now ready to start entering the rest of the details. Purchase order date: click on it, and today’s date will appear. If you want a different date, change it.
- Enter the supplier’s details in full, including the delivery date (if available), payment terms, the requester, and the department.
- You are now ready to enter all the details of the products or services that you are ordering. Add as much detail as possible to the description. This makes the required items clear to the supplier. Enter the quantity and unit price. The total will be calculated automatically.
- Include any special delivery instructions, such as the delivery address or the contact person, before delivery. It is worth including an intended delivery date.
- Add any delivery charge.
- The VAT is automatically calculated at 20%. If the VAT rate is different, change the last number in the formula below.
The purchase order is now ready. If the company’s purchase order procedures require an authorised signature, this is the time to obtain it. You can then send the purchase order to the supplier by email, post, or hand delivery.
Purchase Order Example
Below is an example of a purchase order using the Microsoft Excel template.
It shows the following information:
- 3 items of inventory are ordered, 2 of each.
- The shipment address is the same as the company address.
- Payment terms are 14 days.
- Instructions for delivery
- The total price for the purchases is £1262.62, including delivery and VAT.
Purchase Order PDF
You may want to print a blank purchase order form PDF. It is helpful if you are visiting the supplier’s premises and want to complete the purchase order with them.
As in the instructions above, complete all your business details, including the delivery address, as in the instructions above. You can either delete the supplier and use this as a template for all orders or complete the supplier details. Delete the formulas in the bottom box for the totals, delivery and Net.
To print the form in Microsoft Excel to a PDF.
- File
- Save as or save a copy
- Name the file
- Select the Excel workbook and convert it to PDF using the drop-down menu.
The document is then available to print as a PDF.
Purchase Order Template Log
If your business uses a purchase order system, keeping a purchase order log helps you track orders and their progress. Record when suppliers deliver goods, when invoices arrive, and when you complete each order.
A purchase order log also helps you identify late deliveries, missing invoices and outstanding orders.
Use Excel’s search feature to find orders by purchase order number, supplier, description or other details.
Download our free Excel purchase order log template at the end of this page to help manage your orders.
Instructions
- Enter the details from the purchase order, either manually or by copying and pasting.
- When you receive the goods, enter the date.
- When the invoice arrives, check it against the purchase order for any errors; if it is correct, enter the invoice number.
- If the order is complete, enter a ‘y’ in the last column.
Below is an example of a completed Purchase Order Log.
Two purchase orders were entered; the first is complete, and the second is awaiting an invoice.
Purchase Order Templates Download
By downloading our free templates, you agree to our licence agreement, allowing you to use the templates for your own personal or business use only. You may not share, distribute, or resell the templates to anyone else in any way.
Xero Accounting Software
Spend less time entering transactions into spreadsheets. Xero connects to your bank, helps you manage invoices and expenses, and supports Making Tax Digital.
- Send invoices
- Connect your bank
- Capture receipts
- MTD ready
FAQ
Is the purchase order template free to download?
Yes, you can download the template in both Excel and Word formats for free. No sign-up is required. You can add your business name, logo, and contact details.
Can I customise the purchase order template for my business?
Yes. You can edit the column headings, line items, and payment terms to match your business. You can also add your own purchase order numbering sequence.
Does the purchase order template work in Google Docs or Google Sheets?
Yes. You can open and edit the Word version in Google Docs, and the Excel version in Google Sheets. Both work well for customisation and printing.
Do I need a separate purchase order template if I use accounting software?
Most accounting software packages, including Xero, QuickBooks, and Sage, have built-in purchase order functionality that automatically links to your supplier invoices and stock records. A standalone template is best suited to businesses that manage purchasing manually or only need to raise purchase orders occasionally.
Purchase Order Form Template Conclusion
Purchase orders form an agreement between the buyer and seller. The buyer’s purchasing process may include authorisation, approved suppliers, and payment details.
It sets out the company details, price, shipping details and quantities.
A purchase order log will keep track of all orders, the delivery date and if the order is complete.
Return from purchase order forms to Purchase Orders.
See all our Excel bookkeeping templates.
Disclaimer: This template is provided for general bookkeeping purposes and is not a substitute for professional tax advice. Check that it suits your circumstances and review current HMRC requirements before submitting information.
