What should a trade business purchase order include?

What a purchase order is and is not

A purchase order is a document you give a supplier to request goods at stated terms. It is not an invoice, which Business.gov.au describes as a document telling a customer how much they owe, when to pay and how. It is also not a receipt or evidence that you have paid.

Record the parties, goods, price, GST treatment and payment timing clearly. A supplier's acceptance can form part of your contract, so check which terms they accept and whether their confirmation changes your order. Keep the PO, supplier quote and confirmation together; get advice on terms you do not understand.

Sources[2][1][5]

What to put on the order

This field list is our recommendation, built from the contract and invoice points above. It is not a mandated form.

Sources[1][2]

Purchase order template

Replace every square bracket. Send it before the supplier picks or delivers, and keep the sent copy with the job.

PURCHASE ORDER [PO-0000]

Date: [DD/MM/YYYY]
Job reference: [job number and site address]

Buyer: [legal name], trading as [trading name], ABN [ABN]
Address: [address]
Authorised contact: [name, phone, email]

Supplier: [legal name], ABN [ABN]
Supplier quote or reference: [reference and date]

Items:
1. [product code] | [description, brand, model, specification] | Qty [number] [unit] | $[unit price] | $[line total]
2. [product code] | [description] | Qty [number] [unit] | $[unit price] | $[line total]

Order total: $[amount], [GST included / GST extra]

Delivery: [address] on [DD/MM/YYYY], between [time] and [time]. Contact on site: [name, phone]

Terms: Please confirm this order in writing. Changes to items, quantities or price must be agreed in writing by the authorised contact above. Please quote [PO-0000] on your tax invoice.

Supplier acceptance: [name] [date]

Sources[1][2]

Acceptance and invoice-matching checklist

Use this when the supplier confirms the order and again when their invoice arrives. It is our recommended workflow.

On acceptance
[ ] Supplier confirmed in writing, quoting the PO number
[ ] Items, quantities, price and GST treatment match the PO
[ ] Delivery date and address confirmed
[ ] Any substitution or shortfall approved in writing by the authorised contact

On invoice
[ ] Invoice quotes the PO number
[ ] Goods and quantities delivered match the delivery docket
[ ] Unit prices match the PO or an approved change
[ ] Invoice identifies the supplier, date, items and amount, and matches the agreed GST treatment
[ ] Cost allocated to the correct job
[ ] Copy filed with the PO and delivery docket

Sources[2][3]

Keep the paperwork

Business.gov.au says to keep records of all business expenses and that most business records must be kept for 5 years. A clear electronic image of a paper record is accepted if it is a true and clear copy and follows the record-keeping rules. Check your own obligations with your accountant.

Sources[3]

Common questions

How to write a simple purchase order?

Name the buyer and supplier, give a PO number and job reference, list each item with quantity and price, state whether GST is included, add the delivery details and name who is authorised to change the order. Ask the supplier to quote the PO number on their invoice.[1][2]

Is a purchase order legally binding in Australia?

A purchase order can form part of a contract when its terms are accepted. The effect depends on the agreement, including any supplier terms or changes, so keep the order and written confirmation together. Get advice before accepting unclear terms or placing a large order.[5][1]