How to create a purchase order: Free PO template

A purchase order (PO) is a formal document your company issues to a seller to specify the details of the products or services you’re ordering. POs describe the terms of the agreement and help you track your orders, increasing accuracy and efficiency in your procurement process. 

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The downside is that creating a new purchase order for every purchase is time-consuming. Purchase order templates save time, ensure professionalism, and are easily accessible from any device. 

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Here’s how to streamline your PO process with templates. You’ll even find a free purchase order template below that you can download and start using. 

Using a template to create purchase order forms

Streamlining your purchase order generation with a template can help you ensure clear, consistent communication with your suppliers. It can help you avoid errors, omissions, misunderstandings, and confusion, saving you time and money and improving your supplier relationships. 

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The team at Ramp has put together this template so your procurement team can begin experiencing these benefits right away. It includes designated spaces for filling out all the information you’ll need to provide to manage supplier purchases effectively. 

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Here's our purchase order template you can download for free:

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Steps to creating a purchase order

Here’s an overview of the basic steps your procurement team will follow when creating a purchase order:

• Someone within your company identifies a need for goods or services and submits a purchase request, or requisition, to your procurement team
• Your designated stakeholders review and approve the purchase request
• The purchase order is created
• Your team sends the PO to the vendor via email, physical mail, or the vendor’s ERP system
• The vendor acknowledges receipt of the PO, creating a legally binding contract
• The vendor provides the goods or services as outlined in the PO and sends you an invoice
• You team receives the goods and confirms they meet the specs of the PO
• Your AP team processes the invoice and pays the vendor according to the specified terms

How to send a PO to a supplier

You can send your PO to the vendor by emailing a PDF of the document or by printing out the PO and mailing it to the supplier. If your company uses ERP software, the easiest way to send a PO will be to create it and send it to the vendor electronically via the ERP system. 

How to fill out a purchase order template step by step 

‍‍A purchase order template is crucial for a smooth and efficient procurement process. 

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Here are the key components that should be included:

• Your company information: This section includes your company's name, address, and contact details. It ensures the vendor knows who is placing the order and provides necessary contact information for follow-ups.
• Your vendor's information: Includes the vendor's name, address, and contact details. This information is essential for clear communication and for the vendor to process the order correctly.
• ‍“Ship to” information: This part specifies the delivery details. It includes the address where the goods should be delivered and any specific instructions related to the shipping process. This ensures that the products reach the correct destination without any confusion.
• ‍Item and quantity information: Lists the items being ordered along with their quantities. This section should be detailed, including item descriptions, part numbers, and other relevant information to clarify what is being ordered.
• Price and terms: Outline the deal's financial aspects, including the price of each item, total cost, payment terms, and any discounts or special pricing agreements. This section also includes the payment terms, such as due dates and accepted payment methods, to ensure that both parties are on the same page regarding the financial transaction.

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Including these essential components in your purchase order template can ensure clarity, accuracy, and efficiency in your procurement process. It can also help build strong vendor relationships and smooth out your business operations.

Different types of POs and when to use them

‍Selecting the appropriate purchase order template is crucial for optimizing your procurement process. Here are detailed descriptions of various types of purchase order templates and their specific uses:

Standard purchase order template

‍The standard purchase order template is a versatile option suitable for various purchasing needs. It includes essential details such as:

• The purchase order number
• Order specifics, such as item names and quantities
• Shipping information, such as address and delivery date
• Payment due dates

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A standard purchase order template is ideal for businesses that need a straightforward template to manage regular procurement activities without specialized requirements.

Retail purchase order template

‍As the name suggests, a retail purchase order template is designed specifically for retail businesses. Items this PO template would cover include:

• SKU/product codes
• Lead times (when a supplier delivers products)
• Minimum order quantities (MOQ)

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Retail purchase order templates help retailers manage inventory effectively by allowing them to reorder products promptly and accurately, preventing stockouts and overstock situations.

‍E-commerce purchase order template

‍E-commerce purchase order templates are tailored for online stores dealing with both physical and digital products. These PO templates include detailed product descriptions, including:

• Technical specifications
• Digital item details

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E-commerce PO templates enhance online transaction management by providing clear, comprehensive information about each product. This is particularly important for digital goods requiring precise descriptions. 

Manufacturing purchase order template

‍A manufacturing purchase order template is created explicitly for manufacturing businesses.

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It includes a bill of materials (BOM), which lists: 

• All components and materials needed for production
• Production schedules
• Quality control measures

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This PO template helps manufacturers ensure that all necessary materials are ordered and available for production. It also helps maintain quality standards and production timelines, reducing the risk of delays and quality issues.

Wholesale purchase order template

‍A wholesale purchase order template is designed for businesses that purchase goods in large quantities. It includes:

• Bulk pricing details
• Shipping terms such as freight charges and delivery timelines
• Customization options like packaging requirements or product specifications

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A wholesale PO template facilitates large-volume orders and lets businesses negotiate better terms with suppliers, ensuring cost-effective procurement and efficiently meeting bulk purchasing needs.     

Blanket purchase order template

A blanket purchase order (BPO) template is designed for when a business wants to make recurring purchases from the same supplier over a set period. Blanket PO templates include:

• The time period of the agreement, typically quarterly or annually
• Possible references to a master contract for details like pricing, quality, and delivery terms

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While a blanket purchase order specifies things like total quantity, value, and scope, it allows for multiple “releases,” or individual orders, as your company needs them. For example, you might have a $50,000 BPO for office supplies with monthly releases based on your stock levels. 

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A blanket purchase order is ideal for predictable, ongoing needs, like maintenance supplies or ongoing services. 

Contract purchase order template

A contract purchase order (CPO) template serves as a legally binding agreement between you and your supplier outlining the terms for future transactions. It may or may not include immediate purchase details.

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A CPO template will include clauses on:

• Payment terms
• Warranties
• Liabilities
• Dispute resolutions

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A contract purchase order could be broad, like a year-long agreement for IT services, or it could be tied to specific deliverables. 

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A CPO would be appropriate for complex, high-value, or long-term engagements requiring formal terms, like a PO for construction services detailing project milestones, penalties for delays, and payment schedules.

Use Ramp to automate your purchase orders

‍Creating new purchase orders without a template is tedious and time-consuming. Manual PO creation processes are also prone to errors as well as tracking and matching difficulties. 

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With Ramp’s easy-to-use procurement platform, all your templates will be in one place. You’ll be able to automate your entire procurement process to simplify everything from issuing purchase orders to matching those purchase orders with delivery receipts and invoices, saving you time and money at every step. 

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By automating your procurement process with Ramp, you can:

• Reduce manual tasks: Automating tedious data entry lets your team focus on the skilled work you hired them to do

• Reduce errors: Ramp’s software flags mistakes like missing information and duplicate documentation, helping your team avoid accidental overspending and disrupted supplier relationships

• See the whole picture: With Ramp’s real-time analytics, you can see spending trends and manage your cash flow and vendor relationships more wisely

• Improve compliance: Ramp helps you follow company policies and meet legal requirements effortlessly, thanks to its built-in controls and audit trails

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Ready to simplify your purchasing? See how Ramp can transform your procurement process.