Purchase Order
The buyer’s document, not the seller’s. It is the first official offer in the transaction, which means it becomes a contract the moment the seller acts on it.
- A PO number the seller has to quote back, so invoices can be matched
- Delivery dates, quantities and agreed prices stated precisely
- A reusable template for your purchasing team
- Drafted by experienced lawyers, with terms on it rather than just a price
Get started today
Close the formA few details, then your expert calls you. Nothing to pay at this step.
- Your details stay confidential
- Secure online payments
- Queries answered in 24 business hours
- 10,000+ Businesses served
- 100% Satisfaction Guarantee policy
- 4.7/5 Ratings On Google
Prefer to talk to someone first?
What a purchase order is
The buyer’s written offer to a seller, setting out what is being bought, how much of it and at what price.
A purchase order is a commercial document and the first official offer issued by a buyer to a seller, indicating the types, quantities and agreed prices for the products or services being bought. It is used to control the purchasing of goods and services from external suppliers.
Buyers draft purchase orders. This is not the seller’s document. It carries a purchase order number, which is also quoted on the invoice so that the two can be matched, and it states the specific details of the products required, the requirements and the date they are needed by.
Because it is an offer, it becomes a binding contract as soon as the seller accepts it. Accepting can be as informal as beginning the work, which is why the terms on the order matter as much as the price on it.
- Issued by
- The buyer
- Issued to
- The seller
- Legal status
- An offer
- Becomes a contract
- On acceptance
- Including by starting work
- Carries
- A PO number
- Matched to
- The invoice
- By that number
- Often preceded by
- An estimate
Why have one drafted
- Drafted by lawyers, so the terms on it are terms you would want to be held to
- Built for how your purchasing actually runs, approvals included
- A reusable template rather than a one-off document
- The whole engagement handled online
- Thousands of businesses served across every state in India
What the drafting covers
- A short call about what you buy and how purchases get authorised
- A purchase order template drafted for your business
- The terms of purchase drafted onto it, not left to the seller’s invoice
- A numbering convention so orders and invoices reconcile
- One revision after you have read the draft
What a purchase order should carry
A number, and a discipline about it
The seller quotes it on the invoice. It is what lets accounts match an invoice to something somebody authorised, and it is the whole point of raising orders at all.
Specifics, not categories
The exact products, the quantities, the agreed prices and the date they are required by. "Assorted fittings as discussed" is a dispute waiting for a delivery.
Your terms of purchase
Payment terms, inspection and rejection, delivery and title. If the order is silent, the seller’s own terms on the back of the invoice usually fill the gap instead.
Purchase order, estimate, invoice
One is written by the buyer and two by the seller, and only one of the three is an offer. Getting them the wrong way round is how a business ends up bound by terms it never read.
| Attribute | Purchase order | Estimate | Final invoice |
|---|---|---|---|
| Who, and when | |||
| The buyerThe buyer, and this is the one people get backwards. A purchase order is the buyer’s document, raised to authorise the spend inside their own organisation as much as to tell the seller to go ahead. | The sellerThe service provider, setting out what the work is expected to cost before anyone has committed to it. | The sellerIssued once the order or the project is complete and the money is due. | |
| At the go-aheadThe first official offer of the transaction: types, quantities and agreed prices, from the buyer to the seller. | Before agreementWhile the buyer is still deciding. It is what they compare against a competitor’s number. | At the endThe last invoice on a job, after any advances and part-payments, showing the total still owed. | |
| What it commits you to | |||
| Once acceptedIt is an offer. When the seller accepts it, by confirming it or by starting the work, it becomes a contract on the terms it carries. | NoAn approximation of price, hours and materials. Neither side is committed by it, which is why the assumptions behind the figure belong on the document. | It is a demandIt does not create the obligation; it calls in one that already exists under the order or the contract behind it. | |
| A PO numberThe items and quantities, the agreed prices, the date they are needed by, and a purchase order number the seller must quote back on the invoice so the two can be matched. | The workingsYour company name, a description of each job, and an approximate cost for each, with materials and labour hours shown separately where they drive the number. | The amount dueWhat was supplied, what has already been paid, what remains, and the date by which it has to be paid. | |
| Controlling spendBuying from outside suppliers, where the organisation needs a record of who authorised the purchase before the money left. | Quoting workTrades where materials and labour hours drive the price: repairs, construction, fit-outs, and project work generally. | Getting paidClosing a project or an order, and starting the clock on the payment terms. | |
| Next step | Get started | Know more | Know more |
Swipe the table sideways, Purchase order stays in view. Open any attribute to read the detail behind all 3 answers.
What our clients say
- Rated 5 out of 5
Had a great experience with LegalWiz for my trademark registration. The service was smooth, and the after sales support was excellent. Although the filing took around 3 days, the team stayed connected throughout, provided clear updates, and there were no communication issues. Overall, a very professional and reliable experience.
Vishvam PGJune 2026 - Rated 5 out of 5
Had a wonderful experience. The team was very supportive, responsive and completed everything on time. Thank you for the excellent support.
Ujwala ShettyJune 2026 - Rated 5 out of 5
Jignesh was very helpful and amazing while filling the compliance form for my business. Will take your service again.
Sumit YadavApril 2026 - Rated 5 out of 5
Good support team. No hindrance in executions. Go for it.
Upkar ChaurasiyaApril 2026 - Rated 5 out of 5
JIGNESH BHAI, I wanted to take some time to sincerely thank you for your incredible support with my MSME registration through LegalWiz. From start to finish, Jignesh Bhai, your guidance, patience, and professionalism made what could have been a stressful and confusing process feel completely smooth and manageable. You took the time to explain every step clearly, answered all my questions patiently, and ensured that nothing was left uncertain. Your attention to detail and dedication truly stood out, and it gave me a lot of confidence throughout the process. I really appreciate the effort, care, and commitment you put into helping me. Jignesh Bhai, your service has been exceptional, and I couldn’t have asked for a better experience. Heartfelt thanks once again!
Rahul SharmaApril 2026 - Rated 5 out of 5
Highly recommend services from Legalwiz. Got my LLP conversion process faster. Helpful staff.
Sharad PatelJanuary 2026 - Rated 5 out of 5
Limited Liability PartnershipHad a great experience working with the team! They handled my LLP registration smoothly, guided me clearly through every step, and were always quick to respond. Really appreciate their professionalism and support. Highly recommended!
Rishi KhannaJanuary 2026 - Rated 5 out of 5
They are so quick and highly professional and experienced in the industry to carry out the requirement. Loved their services.
SHASHANK S PANDEYJanuary 2026 - Rated 5 out of 5
Trademark RegistrationVery fast & timely service. The team was very helpful and helped me find out if the brand name was available or not over the call itself without any extra cost or charge. Brilliant service, very clear communication, timely delivery & transperant pricing. Cheers!
Naman PiparaOctober 2025 - Rated 5 out of 5
Trademark RegistrationSatisfied with your unit service and fee grateful to connect with you service providers staff thanks regards Shivlal
SHIVLAL MALVIYAOctober 2025 - Rated 5 out of 5
File INC-20AI am very much satisfied with their service for INC 20 A. i will recommend them and definitely will keep in mind for any other service.
MANINDER KaurMarch 2025 - Rated 5 out of 5
Close a Private Limited Companyexcellent, i appreciate accountability and transparency in the process
Aditya BansalMarch 2025 - Rated 5 out of 5
Private Limited CompanyLegalwiz is doing its best to give good service to clients.
Sunil ChauhanMarch 2025 - Rated 5 out of 5
Trademark RegistrationRecently got Trade Mark registered
Devendra DklMarch 2025 - Rated 5 out of 5
Trademark RegistrationIt was an amazing experience from the support team. Thank you...
Aswin MMarch 2025 - Rated 5 out of 5
GST RegistrationHad a Seamless Experience in registering for GST. Been associated with them for 5 yrs now, and have done several LLP and GST registrations. Happy with their service, so i keep coming back.
Mr KarthikFebruary 2025
Supported by our partners
Leverage best deals offered by the industry leaders and experience mutual growth.
Have questions? Find answers here
Still have a question? Our team is happy to help, at no charge and with no obligation to buy anything.
When does a purchase order become binding?
When the seller accepts it. Acceptance can be a written confirmation, or it can be the seller simply starting the work or dispatching the goods.
From that point the terms on the order govern the transaction, which is why they are worth drafting rather than leaving blank.
Who raises the purchase order, the buyer or the seller?
The buyer, always. A "purchase order" sent by a seller is a quotation or a proforma invoice wearing the wrong name, and it does not do the job of authorising a spend.
What is the difference between a purchase order and an invoice?
The purchase order is the buyer’s offer at the start of the transaction. The invoice is the seller’s demand for payment at the end of it.
The PO number appears on both, which is what allows accounts to reconcile them.
Do small businesses need purchase orders?
Any business where more than one person can commit money benefits from them, because the order is the record of who authorised the spend before it happened.
Where one person buys everything, the discipline matters less, but the terms on the document still do.
Get your purchase order drafted
With your terms on it, and a number your invoices can be matched against.
Get started- Secure payment
- Prompt support
- Fully online
- No hidden fees