How to use the purchase order generator
- Enter the PO number, order date, an optional requested delivery date and payment terms.
- Fill in the buyer (your company), the vendor and, if different, the ship to address.
- Add each line item with a description, a quantity (up to three decimals) and a unit price. Press Add line for more rows.
- Enter the tax rate that applies to your order and any shipping. The subtotal, tax and total are worked out exactly.
- Press Download PDF or Print. The order has an authorized-by line and a date line for a signature.
How the totals are worked out
Each line total is the quantity multiplied by the unit price, rounded to the nearest cent, with exact halves rounded up. The subtotal is the sum of the rounded line totals. Tax is the subtotal multiplied by the rate you enter, rounded the same way, and the total is subtotal plus tax plus shipping. All arithmetic uses whole cents, so the figures match a calculator working in decimal.
For example, 12 units at 4.99 give 59.88, 2.5 hours at 120.00 give 300.00 and 3.333 units at 7.77 give 25.90 (the exact product is 25.89741). The subtotal is 385.78. At an example rate of 8.25 percent, tax is 31.83 (31.82685 rounded) and with 15.00 of shipping the total is 432.61.
The tax rate is whatever you type. The tool does not know which taxes apply to your purchase, whether the vendor charges them, or whether you are exempt. If there is no tax on the order, leave the rate empty and the line is shown as zero.
What a purchase order is for
A purchase order is a document a buyer sends to a vendor to request goods or services at stated quantities and prices. It records what was ordered, where it should be delivered and how it will be paid for, and it usually carries a number so that the later delivery note and invoice can refer to it. Many companies match the purchase order, the delivery and the invoice before paying.
This tool makes a clear, printable purchase order from your entries. It does not send the order, track deliveries or approve spending. The page includes a signature line for the person who authorizes the order.
Template, not legal advice
The purchase order is a template for your records. Whether it forms part of a binding agreement, and what terms apply, depends on your contract and the law that governs it. If the order is large or the terms matter, have it reviewed by someone qualified. Everything is made in your browser and nothing is uploaded. Saved entries, if you choose them, stay on this device. For billing the other way, use the invoice generator.
Assumptions and limits
- Prices are in US dollars. Quantities may have up to three decimals and unit prices up to two decimals.
- The tax rate is entered by you and applied to the whole subtotal. Taxable and non-taxable items, tax-exempt status and multiple tax rates are not modeled.
- Each line is rounded to the cent before the lines are added, as they are shown on the order. Rounding is half up.
- The document is a template for your records and not legal advice. It does not send or track orders.
Frequently asked questions
How is the tax on a purchase order calculated?
Tax is the subtotal times the rate you enter, rounded half up to the cent. A subtotal of 385.78 at 8.25 percent gives 31.83, and the rate is only an example you can change to match your order.
Does the tool know which taxes apply to my order?
No. It applies the single rate you type to the whole subtotal. Taxable and exempt items, and different rates by place, are not modeled, so check the correct treatment yourself.
What goes on a purchase order?
A PO number, the date, the buyer and vendor, the delivery address, the items with quantities and unit prices, the totals, payment terms and an authorization signature. All of these have fields here.
How are quantities with decimals handled?
Quantities can have up to three decimals, useful for hours or weight. The line total is the exact product rounded half up to the cent, so 3.333 units at 7.77 is 25.90.
Is this a legally binding document?
It is a template for your own records and not legal advice. Whether an order creates obligations depends on your agreement and the law, so have important orders reviewed by a qualified person.