Quick Answer: What Is a Purchase Order?
A purchase order (PO) is a document a buyer sends to a vendor to authorize a purchase. It lists the items, quantities, agreed prices and terms. The vendor accepts the PO, fills the order, then sends a matching invoice. Machine shops and procurement teams use POs to track spending, control orders and create a clear paper trail for each job.
This generator uses a standard PO layout to build: a branded company header, Bill To, Ship To and Vendor blocks, and a line-item table with live totals. Inputs include your company info, customer addresses, order details (PO #, date, payment terms, Ship Via, F.O.B.), line items with quantity and unit price, plus a tax rate. Download a clean PDF in one click.
Common PO fields: PO number | Order date | Payment terms (e.g. Net 30) | Ship Via | F.O.B. (Origin or Destination) | Line items (item #, description, qty, unit price) | Subtotal | Tax | Total.
How a Purchase Order Works
A purchase order starts the buying process. The buyer fills in what they need, how many and the price they expect to pay. The vendor reviews the PO and accepts it. Once accepted, the PO becomes a contract that protects both sides.
Bill To and Ship To
The Bill To block is who pays the invoice. The Ship To block is where the parts go. These are often the same company, so this tool lets you mirror Bill To into Ship To with one checkbox. They differ when a customer routes parts to a warehouse or a third-party finisher.
Line Items and Totals
Each line item lists an item number, a description, the quantity and the unit price. The amount updates as you type. Add a line for shipping if you need it. The subtotal, tax and total roll up at the bottom so the numbers always match.
Payment Terms and F.O.B.
Payment terms set when the buyer pays. Net 30 means payment is due 30 days after the invoice date. F.O.B. stands for Free on Board. It tells you who pays for shipping and when ownership transfers. F.O.B. Destination means the seller pays until the parts arrive. F.O.B. Origin means the buyer pays from pickup.
Pro tip: Give every PO a unique number and keep the format consistent, like PO-001. A clear number makes it easy to match the PO to the invoice and the packing slip later.
Is a PO Legally Binding?
A PO becomes a contract when the vendor accepts it. The buyer agrees to pay and the vendor agrees to deliver. Keep a copy of every PO you send. Check your local laws for the specific rules in your area.