What is "Net 30" payment terms?

Payment is due 30 days from the invoice date (or sometimes from the goods-received date — verify which applies). Net 30 is the most common B2B payment term in the U.S. Net 60 is common for larger enterprises with strong negotiating leverage. Cash on delivery (COD) and pre-payment apply to new supplier relationships, credit-risky buyers, or specialty orders.

What does "FOB Destination" mean?

Free on Board Destination — the supplier pays shipping to the buyer's location, and title (and risk of loss) transfers at the buyer's receiving dock. Compare to FOB Origin (or FOB Shipping Point): buyer pays shipping, and title transfers at the supplier's dock. The distinction matters for who insures the goods in transit and who absorbs damage during shipping. FOB Destination is more buyer-favourable.

What's the difference between a PO and a contract?

A PO IS a contract once accepted. The terminology distinction: a PO is typically a single-transaction document for goods on standard terms; a more formal "supply agreement" or "master purchase agreement" governs an ongoing relationship over multiple POs and includes more detailed terms (warranties, indemnities, IP, dispute resolution). For one-off transactions or routine orders, a PO is sufficient. For strategic supplier relationships, an MPA + per-order PO structure is better.

What if the supplier sends a different acknowledgement?

This is the classic "battle of the forms" problem under UCC §2-207. The supplier's acknowledgement may have additional or different terms (typically more supplier-favourable). Whether those terms become part of the contract depends on whether the buyer is a "merchant" (UCC §2-104), whether the new terms "materially alter" the agreement, and whether the buyer objects in writing within a reasonable time. Best practice: review supplier acknowledgements and explicitly accept or reject specific terms.

Should I number my POs?

Yes — sequential PO numbers (PO-YYYY-NNNNN format is common) make tracking, accounting, and audit much easier. Many ERP/accounting systems auto-generate PO numbers. The number on the PO should appear on the supplier's invoice, the carrier's shipping documents, and the receiving paperwork — creating an audit trail from order through payment.

Supplier Order Form (Purchase Order)

Purchase order to a supplier — establishes a binding offer with itemised quantities, prices, and terms.

Customise

Your company (Buyer)

Buyer billing address

Buyer contact (name, email, phone)

Ship-to address (if different)

Supplier name

Supplier address

Supplier contact

Purchase order number

Order date

Required-by date

Subtotal (USD)

Shipping (USD)

Tax (USD)

Total (USD)

Payment terms

Shipping / Incoterms

Special instructions

Live preview

PURCHASE ORDER

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PO Number:               PO-2026-04481
Order date:              May 4, 2026
Required by:             June 15, 2026

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BUYER

Acme Corporation
1200 Industrial Way, Portland, OR 97214
Contact: Casey Brooks, ops@acme.com, +1 503 555 0188

SHIP TO

Acme Warehouse A, 2000 Industrial Way, Portland, OR 97214

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SUPPLIER

Pacific Components Co.
550 Manufacturing Blvd, Tacoma, WA 98421
Contact: Lin Chen, lin.chen@pacificcomp.com, +1 253 555 0911

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LINE ITEMS

SKU            Description                                  Qty       Unit       Unit Price   Extended
─────────────  ──────────────────────────────────────────  ────────  ─────────  ──────────  ──────────
SKU-1001 | Widget A — blue, 12 oz | 1000 | each | 4.20 | 4200.00
SKU-1002 | Widget B — red, 12 oz | 500 | each | 4.40 | 2200.00
SKU-1015 | Spare cog assembly | 100 | each | 12.50 | 1250.00
SKU-2030 | Premium kit packaging box | 1500 | each | 0.80 | 1200.00

                                                                       Subtotal:    $8,850.00
                                                                       Shipping:    $285.00
                                                                       Tax:         $0.00
                                                                       ──────────────────
                                                                       TOTAL:       $9,135.00

═══════════════════════════════════════════════════════════════════════

TERMS

  Payment terms:         Net 30 from invoice date
  Shipping terms:        FOB Destination — supplier pays shipping

═══════════════════════════════════════════════════════════════════════

SPECIAL INSTRUCTIONS

Mark all packages with PO number PO-2026-04481.
Notify Casey Brooks 24 hours before delivery (need to schedule receiving dock).
Individual carton labels per the attached spec sheet.
QA inspection required for SKU-1015 batch — provide certificate of conformance.

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GENERAL TERMS

  (1) Acceptance: Supplier's commencement of performance, or written acknowledgement of this PO, constitutes acceptance of all terms above.

  (2) Pricing: Prices stated above are firm. Any price increase requires written acceptance by Buyer before shipment.

  (3) Quality: Goods must conform to the specifications, applicable industry standards, and any sample previously approved by Buyer. Non-conforming goods may be returned at Supplier's expense.

  (4) Delivery: Supplier shall deliver by the Required-by date. Late delivery may be cause for cancellation without penalty to Buyer.

  (5) Invoicing: Invoice must reference PO number, ship to all parties listed, and itemise per the line items above.

  (6) Warranty: Supplier warrants goods to be free of defects in materials and workmanship for [period per Supplier's standard warranty, or as separately negotiated].

  (7) Governing law: This PO is governed by the laws of the State of buyer's incorporation, exclusive of conflicts-of-laws principles.

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AUTHORISATION


_______________________________            Date: May 4, 2026
Casey Brooks, ops@acme.com, +1 503 555 0188 (for Acme Corporation)

About this template

A purchase order (PO) is the buyer's formal offer to purchase specific goods or services on stated terms. Once the supplier accepts (by signed acknowledgement, by commencing performance, or sometimes by silence under industry custom), the PO becomes a binding contract under the Uniform Commercial Code (UCC §2-204 and §2-207 in most U.S. states). The PO replaces casual email or phone orders with a written record covering the four essential elements: what (specific goods with SKUs and descriptions), how much (quantities and unit prices), when (required-by date), and on what terms (payment, shipping, warranty). The terms section matters at order-acceptance time and at dispute time. Payment terms determine cash-flow timing for the buyer (Net 30 is most common; 2/10 Net 30 offers a 2% discount for early payment, often a sound use of capital). Shipping terms (FOB Origin vs FOB Destination) determine who pays freight, who bears risk in transit, and when title transfers — important for insurance and accounting. The "battle of the forms" problem under UCC §2-207 arises when the buyer's PO and the supplier's order acknowledgement contain conflicting terms; the law has complex rules about which terms control. Best practice: get the supplier's written acceptance of YOUR terms (the PO terms) explicitly, rather than relying on default UCC outcomes. For ongoing supplier relationships, a master purchase agreement (MPA) negotiated once and referenced by each PO simplifies the per-order paperwork. International orders introduce Incoterms 2020 (CIF, EXW, DDP, etc.) which standardise shipping responsibility globally.

When to use it

Ordering inventory from a supplier.
Booking a service from a vendor (consulting, contract manufacturing).
Recurring orders with consistent terms.
High-value orders where the buyer wants written terms.
Establishing a paper trail for accounting and audit.

What to include

Buyer, supplier, and ship-to addresses.
PO number, order date, required-by date.
Line items: SKU, description, quantity, unit price, extended.
Subtotal, shipping, tax, total.
Payment and shipping terms.
Special instructions and authorisation signature.

Frequently asked

It becomes binding once the supplier accepts. Acceptance can be by signed acknowledgement, by commencing performance (shipping the goods), or by other conduct showing assent. Under UCC §2-204, a contract for the sale of goods can be formed in any manner sufficient to show agreement. The PO terms govern unless the supplier explicitly objects to specific terms in writing before acceptance.

⚠ Legal disclaimer. PO formation and terms are governed by the Uniform Commercial Code (UCC Article 2 in the U.S.) and by international standards (CISG for some international transactions, Incoterms 2020 for shipping responsibility). The UCC "battle of the forms" rules can produce unexpected outcomes. For high-value or strategic supplier relationships, work with corporate counsel to develop a master purchase agreement and standard PO terms. International orders may require additional documentation (commercial invoice, certificate of origin, letter of credit) and compliance with import/export regulations.