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How to prepare a purchase order for your supplier

You told your supplier in a WhatsApp message: “Send me 500 cartons and some tape.” The delivery arrived with different quantities and a price you never agreed. A written purchase order states exactly what you ordered and at what price, so it becomes the reference in any dispute.

Published · 2 min read

What goes in a purchase order?

  • The order number and date, the requested delivery date, and the currency.
  • Your details as the buyer, and the supplier's details.
  • The delivery address and terms, such as receiving hours or whether part deliveries are accepted.
  • The items: description, quantity and agreed unit price.
  • Shipping and tax if they apply, and the final total.
Worked example

500 cartons × 1.85 = 925.00, 48 tape rolls × 4.25 = 204.00 and 20 label rolls × 22.50 = 450.00.

The subtotal is 1,579.00 riyals, and with 75.00 shipping it becomes 1,654.00.

Tax at 15% of that = 248.10, so the total is 1,902.10 riyals in the summary and in the file.

How to do it

  1. Open the Purchase-order generator and choose the language, then enter the order number, date, delivery date and currency.
  2. Enter your details and the supplier's.
  3. Write the delivery address and terms.
  4. Add the items with description, quantity and price, then shipping and a tax rate if they apply.
  5. Press “Create PDF”, check the preview and the page count, then download the file.

When to issue a purchase order

The best time is when a product's stock reaches its reorder point. Work that point out with the Inventory reorder-point calculator, so you order before stock runs out, not after. When the supplier ships, ask for a packing list, or prepare one for your own shipments with the Packing-list generator.

What to know

  • The tool only lays out the document and calculates its amounts. It does not send it to the supplier or track its status.
  • Tax is one rate on items and shipping together. If shipping is not taxable for you, leave the shipping field empty and state the amount in the notes, outside the total, since a separate item is taxed too.
  • Up to 200 items, and a 45-item document across several pages with a repeated table header was tested.
  • A logo or electronic signature cannot be added. There is a blank line for approval and a handwritten signature.
  • Nothing is saved after you close the page.

Common questions

Is a purchase order binding on the supplier?

It documents your order and the agreed price, but it does not replace your agreement with the supplier on prices and terms.

How are amounts rounded?

Each line total is rounded to the currency's smallest unit, then the lines are added up.

Are my details sent to a server?

No, the file is created inside your browser.