Your company needs 200 units of packaging material. Before the supplier delivers anything or raises an invoice, you send them a purchase order. It says: here is what we want, here is the agreed price per unit, here is when we need it, and here are the payment terms. When the supplier accepts, both sides have a written record of exactly what was agreed before anything moves.
Fill in the generator below from the buyer’s perspective. Add the PO number in the invoice number field, list what you’re ordering as line items, and include delivery terms and payment terms in the notes.
Why a purchase order matters
A PO isn’t bureaucracy for its own sake. It protects the buyer in three concrete ways.
First, it locks in the price. If you agree on ₹450/unit verbally and the supplier invoices you at ₹490 three weeks later citing “input cost increase”, your signed PO says ₹450 and that’s what they’re contractually bound to honour.
Second, it creates a three-way match. Large companies’ accounts payable systems won’t release payment until the PO, the supplier’s invoice, and the goods receipt all match in quantity, price, and PO number. Without a PO, there’s nothing to match against.
Third, it gives procurement authority. A PO shows internal approval — that someone with the authority to commit company funds signed off on this purchase before the supplier was engaged.
What a PO needs to include
A complete purchase order covers: your company name and address, the supplier’s name and address, a unique PO number, the PO date, expected delivery date, item descriptions, quantity, unit price, and total per line, the overall total, payment terms (net-30, advance, etc.), and the delivery address if different from your office.
Optional but useful: the name of the person who raised the PO, a reference to any quotation number from the supplier (linking the PO back to the original quote), and specific terms about quality standards or return conditions.
PO number on the supplier’s invoice
When a supplier invoices against a PO, they must include your PO number on their invoice. This is mandatory for most mid-size and large company accounts payable systems. The invoice with no PO number either gets rejected or sits in a queue indefinitely because the accounts team has no way to verify it was ever approved. If you’re a supplier, always confirm the buyer’s PO number before raising your invoice and make it prominent at the top of the document.
Open PO vs blanket PO
An open PO is a one-time order for a specific quantity at a specific price.
A blanket PO is a standing arrangement for a period: “we’ll order up to 5,000 units over the next 6 months at ₹450/unit”. Each actual order draws down against the blanket PO. This is common for regularly ordered consumables where you want the pricing and terms locked in but don’t want to raise a new PO every time you order a batch.
For regular vendor relationships, blanket POs reduce paperwork significantly and give the supplier visibility into expected demand.
PO vs invoice: who raises which
The buyer raises the PO. The supplier raises the invoice. They’re mirror documents — the PO says “we want to buy”, the invoice says “here is what you owe us for what you bought”. They should match in description and amounts. If the invoice comes in higher than the PO, the buyer’s accounts team should flag it before paying.
Related: quotation template for the supplier’s side before the PO is raised, and the invoice generator for the supplier’s final invoice once goods are delivered.