Purchase Order Template

What's Included

A professional Purchase Order (PO) for Philippine businesses:

• PO number (sequential, for internal tracking)
• PO date and required delivery date
• Buyer company details (name, TIN, address, contact)
• Supplier / vendor details (name, TIN, address, contact person)
• Line items: item code, description, unit of measure, quantity, unit price, amount
• Subtotal, VAT amount, and total
• Delivery address and delivery terms (FOB destination / FOB shipping point)
• Payment terms (cash, net 30, net 60, etc.)
• Special instructions
• Authorized signatory (buyer) and acceptance signature (supplier)

Why POs Matter for Philippine SMEs

Even small businesses benefit from using formal POs because:

1. Documentation for BIR: When paired with the supplier's Sales Invoice, the PO forms part of your purchase documentation trail — important during BIR audits.
2. Dispute resolution: A signed PO with agreed prices, quantities, and delivery dates protects you if the supplier delivers the wrong item or charges a different price.
3. Budget control: Pre-approved POs prevent unauthorized purchases.
4. Accounts payable management: Finance can match the PO to the received goods and the supplier's invoice before processing payment (three-way matching).

PO Numbering Best Practices

Use a consistent format: PO-YYYY-XXXX (e.g., PO-2025-0042). This makes it easy to reference POs in conversation with suppliers and to track open orders in your accounting system.

Three-Way Match Process

For proper accounts payable controls:

1. PO (what you ordered and agreed to pay)
2. Delivery Receipt / Goods Received Note (what was actually received)
3. Supplier's Sales Invoice (what you are being billed for)

Only release payment when all three documents match. Flag and resolve discrepancies before paying.

How to Customize

1. Update the buyer header with your company information and logo.
2. Assign PO numbers sequentially — never reuse a number.
3. Adjust payment terms to match your supplier agreements.
4. Add your internal approval routing (e.g., requires GM signature for POs above ₱50,000) in the footer.