Finance & Operations

Free Purchase Order Template (PDF)

A purchase order agreement documents a specific order of goods — itemized pricing, delivery terms, and payment terms — as a standalone record of what was ordered and agreed.

When to use it

Use this for a one-off or occasional purchase of goods where you want a signed record of exactly what was ordered, at what price, and on what delivery and payment terms — especially useful when there's no broader standing agreement already in place with the vendor.

What's typically included

• PO number and date
• Itemized goods and pricing
• Delivery terms
• Payment terms
• Inspection and acceptance
• Cancellation terms
• Governing law

How to fill it in

• Fill in the line-item table with actual quantities and unit prices — this table is what the whole agreement is really about, so it's worth double-checking against the vendor's own quote before sending.
• Set a real delivery date and shipping address, and note the inspection window (how many days the buyer has to flag a defect after delivery) — after that window, the order is deemed accepted.
• If you order from this vendor regularly, consider the vendor payment terms agreement instead (or alongside this one) to set standing terms once rather than renegotiating them on every purchase order.

This template is a general starting point, not legal advice — customize it and have it reviewed for your situation.

Frequently asked questions

What if I order from this vendor regularly — do I need a new PO agreement every time?

For a one-off or occasional purchase, yes, a fresh purchase order agreement per order makes sense. For a recurring vendor relationship, it's more efficient to set up a vendor payment terms agreement once and reference it on individual purchase orders going forward.

Is an electronically signed purchase order legally binding?

Yes, under the U.S. ESIGN Act and state UETA laws, the same as any other contract.

What happens if the delivered goods don't match what was ordered?

The inspection and acceptance section gives the buyer a set number of days to notify the seller in writing of any discrepancy or defect — after that window, the order is treated as accepted, so it's worth inspecting promptly.