What is a purchase order and why use one?

A purchase order (PO) is a buyer-issued document that formally requests goods or services from a vendor at agreed prices and quantities. Once accepted, it becomes a binding contract. POs create a clear paper trail for budgeting, approvals, and matching invoices to deliveries.

What is the difference between ship-to and bill-to?

Bill-to is where the invoice should be sent and who is responsible for payment, usually your accounts department. Ship-to is the physical address where the goods should be delivered, which may be a warehouse, site, or different office.

What does a PO number do?

A unique PO number lets both buyer and vendor reference the same order across quotes, deliveries, and invoices. The vendor should quote your PO number on their invoice so your accounts team can perform three-way matching (PO, delivery note, invoice).

Should I include tax and shipping on a PO?

Yes, where known. Including tax and shipping gives the vendor and your finance team the expected total so there are no surprises when the invoice arrives. If the vendor calculates these, you can leave them at zero and note 'tax and shipping per vendor quote'.

Is my PO data stored anywhere?

No. The purchase order is generated in your browser and your draft stays only on your device. Nothing is uploaded.

Purchase Order Builder

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A clean, formal purchase order vendors will accept

A purchase order is how a buyer formally commits to an order: it names the vendor, lists exactly what’s being bought at what price, states where it ships and when it’s needed, and sets the payment terms. This builder produces a standard PO with a unique PO number, separate bill-to and ship-to addresses, itemised costs, tax and shipping, and clear delivery and payment terms.

How it works

Each line contributes quantity × unit cost to the goods subtotal. The tool then adds tax and a flat shipping charge to reach the order total:

line total = quantity × unit cost
subtotal   = sum of all line totals
tax        = subtotal × (tax rate ÷ 100)
total      = subtotal + tax + shipping

The PO number ties the document to future deliveries and invoices, while the requested delivery date and payment terms (e.g. Net 30) set expectations the vendor agrees to by fulfilling the order. Amounts are formatted in your chosen currency.

Tips and notes

Use a sequential PO scheme (PO-2026-001) so each order is uniquely traceable across documents.
Always fill in ship-to even when it matches bill-to — vendors rely on it for delivery and it prevents misrouted shipments.
State payment terms explicitly (Net 30, 2/10 Net 30, on delivery) to avoid disputes.
Ask the vendor to quote your PO number on their invoice so your team can match PO, delivery note, and invoice before paying.