Issued By
Buyer
Received By
Seller
Retention
7 years for tax and audit purposes
When It's Required
- Commercial transactions
- Budget tracking
- Accounts payable
Legal Significance
Once accepted by the seller, a PO becomes a legally binding contract. It establishes the terms of the transaction including price, quantity, and delivery expectations.
What Goes On It
| Field | Description | Required |
|---|---|---|
| PO Number | Unique identifier assigned by the buyerExample: PO-2024-00123 | Yes |
| Buyer Information | Company name, address, and billing details | Yes |
| Seller Information | Vendor name and contact details | Yes |
| Order Date | Date the PO was issued | Yes |
| Ship To Address | Delivery location for the goods | Yes |
| Line Items | Products, quantities, unit prices, and line totalsExample: 500 x 48x40 Grade B Pallets @ $5.00 = $2,500.00 | Yes |
| Subtotal | Sum of all line items before tax | Yes |
| Tax | Applicable sales tax if not exempt | No |
| Shipping/Freight | Delivery charges if applicable | No |
| Total | Final amount due | Yes |
| Payment Terms | Net 30, Due on Receipt, etc. | Yes |
| Delivery Date | Expected or required delivery date | No |
Templates
Related Documents
Invoice
An invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided and the amount due for payment.
Proof of Delivery (POD)
Proof of Delivery (POD) is a document signed by the receiver confirming that goods were delivered. It protects all parties in a transaction.
Packing Slip
A packing slip is a document that accompanies a shipment, listing the contents for verification during receiving.