How does a Purchase Order work?

A Purchase Order serves as a transaction record between the buyer and seller of a product or service. Typically issued by the buyer, a Purchase Order often includes the name of the buyer, the type of product, the quantity of the product to be purchased, the date of anticipated delivery, the agreed-upon pricing, and the total sales amount.

What is the difference between a Purchase Order and an Invoice?

The primary difference between a Purchase Order and an Invoice is that generally speaking, one is issued by the buyer and one is issued by the seller. The seller issues an Invoice once the Purchase Order has been fulfilled. Typically, the Invoice has the Purchase Order number on it to make it easier for the buyer to verify that the service or product being invoiced matches with the specifications and prices outlined in the original order.

Why do you need a Purchase Order?

A Purchase Order can help to ensure that the buyer and seller are on the same page about the service or product being delivered. Purchase Orders can also help the buyer stay organized when it comes to accounting and tracking expenses.

What happens after a Purchase Order is issued?

Normally, after you make a Purchase Order, it should be issued to the seller of the product or service you are buying. At that time, the seller will decide whether they are able to fulfill the order at the price requested. If you have questions about buying or selling products and services, ask a lawyer .

MAKE YOUR FREE Purchase Order

Create Your Document In Just 3 Easy Steps:

Build your document

Answer a few simple questions to make your document in minutes

Save now, finish later

Start now and save your progress, finish on any device

RocketSign® & use

Securely sign online and invite others to sign

What is a Purchase Order?

As a buyer or seller of goods or services, use a Purchase Order to keep track of what has been requested, how much it will cost, and when it will be delivered.

When to use a Purchase Order:

You want to buy items from a vendor or other business.
You supply goods to a person or business.
You're an office manager who need to keep track of what comes in-and what goes out.

This document has been customized over 84.5K times

Legally binding and enforceable

Ask a lawyer questions about your document

Sign this document online for free with RocketSign®

, ,

- -

Purchase Order

Date:

Customer Name:

Customer Address: , ,

Customer Contact Number:

Customer Email:

Shipping Address: , ,


Description	Model Number	Quantity	Unit Price	Total


	Subtotal:


	Tax Rate:	%	Sales Tax:


	Shipping Charges:


	Discount:	%	Discount Total:


	Purchase Total:


By:	Date:

Try Rocket Lawyer FREE for 7 days

Start your Premium Membership now and get legal services you can trust at prices you can afford. You’ll get:

All the legal documents you need—customize, share, print & more

Unlimited electronic signatures with RocketSign^®

Ask a lawyer questions or have them review your document

Dispute protection on all your contracts with Document Defense^®

30-minute phone call with a lawyer about any new issue

Discounts! Incorporate for FREE + hire a lawyer with up to 40% off*

*Free incorporation for new members only and excludes state fees. Lawyer must be part of our nationwide network to receive discount.

Purchase Order FAQs

Collapse all

Expand all

How does a Purchase Order work?

A Purchase Order serves as a transaction record between the buyer and seller of a product or service. Typically issued by the buyer, a Purchase Order often includes the name of the buyer, the type of product, the quantity of the product to be purchased, the date of anticipated delivery, the agreed-upon pricing, and the total sales amount.
What is the difference between a Purchase Order and an Invoice?

The primary difference between a Purchase Order and an Invoice is that generally speaking, one is issued by the buyer and one is issued by the seller. The seller issues an Invoice once the Purchase Order has been fulfilled. Typically, the Invoice has the Purchase Order number on it to make it easier for the buyer to verify that the service or product being invoiced matches with the specifications and prices outlined in the original order.
Why do you need a Purchase Order?

A Purchase Order can help to ensure that the buyer and seller are on the same page about the service or product being delivered. Purchase Orders can also help the buyer stay organized when it comes to accounting and tracking expenses.
What happens after a Purchase Order is issued?

Normally, after you make a Purchase Order, it should be issued to the seller of the product or service you are buying. At that time, the seller will decide whether they are able to fulfill the order at the price requested.

If you have questions about buying or selling products and services, ask a lawyer.

Ask a lawyer

Our network attorneys are here for you.

Make your free Purchase Order now!

Answer a few simple questions to make your document in minutes.

Make document