Purchase order template
A purchase order (PO) is a buyer's written offer to buy specific goods at a set price, quantity and delivery date. When the supplier signs it, that offer becomes a contract. This template has line items, ship-to and bill-to details, delivery and payment terms, and a signed acceptance from the supplier, so you're not relying on an email that says "ok, will ship". Read it below, then send your next PO from SignMaster.
Updated November 5, 2026 · 4 min read
The contract
Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.
- You, before sending
- Buyer
- Supplier
Purchase Order
Purchase order number: PO number Order date: Order date Supplier quote reference: Supplier quote number
From Buyer company (the "Buyer") to Supplier name (the "Supplier"). The Buyer offers to buy the goods below on the terms of this purchase order (the "PO").
1. Goods ordered
- Item 1 description, quantity Item 1 quantity at Item 1 unit price each.
- Item 2 description, quantity Item 2 quantity at Item 2 unit price each.
- Item 3 description, quantity Item 3 quantity at Item 3 unit price each.
- Item 4 description, quantity Item 4 quantity at Item 4 unit price each.
Order total, before tax: Order total. Sales tax, if any, is shown separately on the invoice. Prices are fixed for this PO and include packing.
2. Ship to and bill to
Ship to: Ship-to address. Receiving contact: Receiving contact.
Send invoices to: Bill-to address or email. Every invoice, packing slip and box label must show the PO number.
3. Delivery
The goods must arrive by Required delivery date. Shipping terms: Shipping terms and freight. Partial shipments are Partial shipments. The Supplier will tell the Buyer at once if any item will be late, with a new date, and the Buyer may then cancel the late items without charge. Risk of loss stays with the Supplier until the goods are delivered to the ship-to address unless the shipping terms say otherwise.
4. Payment
The Buyer will pay each correct invoice within Payment terms in days days after the later of receiving the invoice and receiving the goods it covers. The Buyer pays only for goods actually received and accepted, at the prices in this PO.
5. Inspection and rejection
The Buyer may inspect the goods within Days to inspect goods days after delivery and reject any that are damaged, defective or don't match this PO. Rejected goods are returned at the Supplier's cost, and the Supplier will replace them promptly or credit the Buyer, as the Buyer chooses. Paying for goods doesn't waive the right to reject them for defects found later within the warranty.
6. Warranty
The Supplier warrants that the goods match their description and any specifications referred to in this PO, are new unless stated, are free from defects in materials and workmanship, and are fit for their ordinary purpose, for Warranty in months months after delivery. The Supplier also warrants that it has good title to the goods and that they don't infringe anyone else's rights.
7. Compliance and documents
The goods will comply with the laws, safety standards and labeling rules that apply to them where they are delivered. With the shipment, the Supplier will include a packing slip and any certificates, manuals or safety data sheets the goods need, and these documents: Required documents.
8. Changes and cancellation
Changes to this PO must be in writing and accepted by both parties. The Buyer may cancel any goods that have not yet shipped by written notice, paying only for custom items the Supplier has already made for this order.
9. Acceptance and terms
This PO is accepted when the Supplier signs it, or when the Supplier ships any of the goods. Acceptance is limited to the terms of this PO. Different or additional terms in the Supplier's quote, acknowledgment or invoice are rejected unless the Buyer agrees to them in writing. This PO is governed by the laws of the state of State, and electronic signatures on it count as originals.
Supplier confirmation
Confirmed ship date: Confirmed ship date Supplier's order reference: Supplier order reference
The Supplier accepts this purchase order on its terms, including section 9.
Authorized by the Buyer
Accepted by the Supplier
Opens it in SignMaster as a template you can edit and send.
A starting point, not legal advice. Have a lawyer review it for your state and situation.
On this page
What a purchase order does
A PO tells the supplier exactly what you're buying and tells your own team what's been committed. Accounts payable uses it later in a three-way match: the PO, the packing slip or receiving record, and the supplier's invoice should agree on items, quantities and prices before anyone pays. It's different from a quote, which is the supplier's offer, and from an invoice, which is the supplier's bill after delivery.
Why the supplier's signature matters
Under the Uniform Commercial Code, whose Article 2 governs sales of goods in every state but Louisiana, a supplier can accept an order by shipping or by sending its own acknowledgment form. That form often carries different terms: a different warranty, a limit on liability, a restocking fee. Sorting out whose terms apply is known as the battle of the forms. A PO that says acceptance is limited to its own terms, signed by the supplier, avoids most of that argument.
What the template covers
- PO details: the PO number, order date, buyer and supplier, and the supplier's quote number if there is one.
- Line items: description or part number, quantity and unit price for each item, plus the order total.
- Ship-to and bill-to: where goods go, where the invoice goes, and that every invoice quotes the PO number.
- Delivery: the required date, shipping terms, who pays freight, and whether partial shipments are allowed.
- Payment terms: net days from a correct invoice, and no payment for items not received.
- Inspection and returns: time to inspect, and the right to reject goods that don't match.
- Warranty and acceptance: goods match the description and are fit for their purpose; only the PO's terms apply.
Mistakes that slow down payment
- Ordering by phone and writing the PO after. If the PO doesn't exist when the invoice arrives, the three-way match fails.
- Vague descriptions like "brackets, as discussed". Use the supplier's part numbers.
- No delivery date. "ASAP" gives you nothing to enforce when a job site sits idle.
- Accepting the supplier's terms by default. Say in the PO that its terms control and that other terms are rejected.
- Reusing PO numbers. Every PO needs its own number, so invoices and receipts can be matched to it.
How to send it with SignMaster
- 1
Open the PO template
Choose Use this template. It opens in SignMaster with two signers in order: your buyer or approver first, then the supplier, who signs to accept the order.
- 2
Enter the order
Fill in the gray blanks: PO number, items, quantities, unit prices, total, ship-to, delivery date and payment terms. For more than four lines, attach the supplier's quote or a parts list as a second document in the same envelope.
- 3
Add an approval step if you need one
If orders above a certain amount need a manager's sign-off, add the manager as a signer ahead of the supplier and place a signature field for them. The supplier only receives the PO once it's approved.
- 4
Send it to the supplier
Add the supplier's sales or order desk contact. They confirm the ship date and add their order reference, then sign. The signed PO with its certificate of completion goes to both sides, ready for your accounts payable file.
Blanket orders for every supplier
Many businesses issue a blanket PO to each regular supplier at the start of the year, with a price list and a spending ceiling. That's the same document with different numbers per supplier, which is what bulk send is for. One row per supplier, columns named after the gray blanks (Supplier name, PO number, Order total), and each supplier gets their own envelope. On Crew and Company, webhooks can pass each accepted PO to your accounting tool.
Questions? Answers.
Is a purchase order a legally binding contract?
Once the supplier accepts it, generally yes. A PO is an offer, and acceptance (a signature, an acknowledgment or shipment) makes it a contract for the sale of goods.
What's the difference between a purchase order and an invoice?
The buyer sends a purchase order before delivery to place an order. The supplier sends an invoice after delivery to ask for payment, quoting the PO number.
Does a purchase order need a signature?
Not always, but a signed acceptance removes doubt about whether the supplier agreed to your price, date and terms, and it's evidence if the order goes wrong.
Who fills in which blanks?
Your team fills in the gray blanks with the order. The supplier adds a confirmed ship date and their order reference, then signs to accept.