Question 1

What's the difference between a PO and an invoice?

Accepted Answer

A purchase order is sent by the buyer before any goods or services change hands — it's the buyer saying "I want to order this, at this price, by this date." An invoice is sent by the vendor after delivery, requesting payment for what was already supplied. The PO authorizes the spend; the invoice collects on it.

Question 2

Do I need a PO for small purchases?

Accepted Answer

Not always. For one-off purchases under a few hundred dollars, an emailed confirmation is usually enough. POs become essential once an order is recurring, has multiple line items, involves a third-party client recharge, or sits above whatever internal threshold your business sets — many small businesses use $500 or $1,000 as the cutoff.

Question 3

Is a purchase order legally binding?

Accepted Answer

A PO becomes a binding contract the moment the vendor accepts it — usually by acknowledging it in writing or by starting to fulfil the order. Until then, it's an offer. The terms on the PO (price, quantity, delivery date, payment terms) are what govern the relationship, which is why vague emails are a poor substitute.

Question 4

Should I number my purchase orders?

Accepted Answer

Yes, always. POs should be sequential and never reused — PO-2026-001, PO-2026-002, and so on. Sequential numbering is what makes a three-way match possible (PO + delivery receipt + invoice) and what auditors look for first. This generator defaults to PO-2026-001 but you can use any format you like, as long as it's unique.

Question 5

What's the difference between FOB Origin and FOB Destination?

Accepted Answer

FOB Origin means ownership and shipping risk transfer to the buyer at the vendor's loading dock — you pay for freight and you're liable if it's damaged in transit. FOB Destination means the vendor keeps ownership and risk until the goods arrive at your door. FOB Destination is the safer default for most small-business buyers.

Question 6

What's the difference between a PO and a work order?

Accepted Answer

A purchase order is sent from a buyer to an external vendor. A work order is internal — it's a manager assigning a specific task or job to an employee or in-house team. POs trigger AP workflows; work orders trigger labor scheduling. They sometimes look similar on paper, but they exist for completely different reasons.

Question 7

How do I send a purchase order to a vendor?

Accepted Answer

Print the PO from this generator (or copy it as text), attach the printed version to a short email to your vendor contact, and ask them to confirm receipt and acceptance. Save your copy alongside the JSON download or in your accounting system, and reference the PO number on every related email and invoice.

Question 8

Does this work as a PO template for freelancers and contractors?

Accepted Answer

Yes. Freelancers most often receive POs from larger clients (ad agencies, IT departments, government contractors) and need to reference a client-issued PO number on invoices. You can also use this generator to issue your own POs to subcontractors — designers hiring illustrators, GCs hiring trades, etc.

Free Purchase Order Generator

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