Business template

Purchase Order

A buyer's official order for goods or services — quantities, prices, and delivery and payment terms in one document.

AI-assisted document tools — not legal advice. A starting point you can understand and customize.

What it is

A purchase order (PO) is the document a buyer sends a seller to order goods or services at agreed terms. It lists what is being ordered, the quantities and unit prices, where and when it should be delivered, and how and when it will be paid. Once the seller accepts it, a PO becomes a binding order — which is why the delivery and payment terms are worth reading before it goes out.

When you’d use it

  • You are ordering goods or services from a supplier.
  • You want quantities, prices, and delivery terms fixed before fulfillment.
  • Your accounting process requires a PO number for every order.
  • You need a clear record of what was ordered and on what terms.

Key sections & clauses

The parts a purchase order usually needs to cover. Use them as a checklist — XOsign flags the ones a draft is missing.

  • PO number & date

    The unique identifier and the order date for tracking.

  • Buyer & seller

    The ordering party and the supplier, with contact details.

  • Line items

    Description, quantity, and unit price for each item ordered.

  • Totals & taxes

    Subtotal, applicable taxes, and the order total.

  • Delivery terms

    Where and when goods are delivered, and the shipping terms.

  • Payment terms

    When payment is due (for example, net 30) and the method.

  • Acceptance & cancellation

    How the seller accepts the order and how it can be changed or cancelled.

How XOsign helps

Understand it, translate it, strengthen it, sign it.

The same four steps behind every XOsign agreement — from the moment you upload or start a draft to the moment it’s signed.

Understand it

XOsign reads the document and explains every clause in plain language, so you know what you're agreeing to before you sign — not after.

Translate it

Read and sign in English or Spanish. XOsign presents the agreement side by side so nobody signs a document they can't fully read.

Strengthen it

XOsign flags missing, vague, or one-sided terms and suggests clearer language — so the agreement actually protects you.

Sign it

Send it for legally binding e-signature (ESIGN/UETA) with a tamper-evident audit trail and a trusted timestamp on the signed copy.

Frequently asked questions

Is a purchase order a legally binding contract?

A purchase order is an offer to buy. It generally becomes a binding contract once the seller accepts it — by confirming the order or fulfilling it. Clear terms on the PO help avoid disputes about what was actually agreed.

What is the difference between a purchase order and an invoice?

A buyer issues a purchase order to request goods or services before they are delivered. A seller issues an invoice to request payment after delivery. The PO number usually appears on the invoice so the two can be matched.

What payment terms are common on a purchase order?

Net 30 is common — payment due 30 days after the invoice date — along with net 15, net 60, or due on receipt. The PO should state the terms clearly so both sides agree on the payment window up front.

XOsign provides AI-assisted document tools and does not provide legal advice. These templates are starting points you can understand and customize — not a substitute for advice from a qualified attorney. Requirements vary by state and situation.

Start your purchase order in XOsign.

Understand every clause, translate it for whoever signs, and send it for signature — all in one place.

Free Purchase Order Template & Guide · XOsign