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Issue clean, auditable purchase orders in seconds — match supplier invoices and speed up AP.
A purchase order (PO) is a buyer-issued document that commits the buyer to purchasing specified goods or services from a supplier at an agreed price. Once accepted by the supplier, it forms a binding contract for that transaction. POs are the backbone of AP workflows in businesses of any size — from sole traders to enterprises.
Common situations where this document is the right tool for the job.
You need to formally order goods or services from a supplier.
Your accountant or finance team requires PO-backed approvals for purchases.
A supplier requests a PO before issuing an invoice.
You want to control spending by pre-approving purchases above a threshold.
You need a clear paper trail for inventory, stocktake, or tax audits.
Multiple team members make purchases and you need a standard process.
The essential provisions every purchase order should include.
Unique sequential PO number and the date of issue. The PO number is the matching key for the supplier's invoice.
Full business name, ABN, billing address, and contact name for queries.
Supplier's business name, ABN, and address.
Delivery address (if different from billing), required delivery date, and delivery method.
Description of each item or service, quantity, unit price, line total, and GST if applicable.
Subtotal, GST, shipping, and grand total. Currency if not in AUD.
When the invoice will be paid (e.g. 30 days from invoice date, or 60 days EOM). Match this to the supplier's vendor agreement if one exists.
Reference to the buyer's standard purchase T&Cs (warranty, delivery, acceptance, liability) or to the master vendor agreement if one is in place.
Internal approval signatures from buyer and approver for POs above a threshold.
Any special instructions, project codes, or cost centres for internal accounting.
Requiring a PO for purchases above a threshold creates a check point. Spending cannot happen without explicit authorisation from whoever has the approval authority.
The PO number is the matching key that AP uses to verify invoices. Three-way matching (PO + receipt + invoice) is the baseline control against fraud and errors.
Suppliers who receive a clear PO before invoicing issue cleaner invoices that match. Cleaner invoices get paid faster, which is good for both parties.
Signed, sequentially numbered POs are primary evidence of business purchases. The ATO accepts them (alongside tax invoices) as proof of deductible expenses.
Yes. A purchase order is an ordinary commercial contract under Australian law. Electronic signatures on it are recognised as valid under the Electronic Transactions Act 1999 (Cth)and the state-based equivalents (e.g. Electronic Transactions Act 2000 (NSW), Electronic Transactions (Victoria) Act 2000, Electronic Transactions (Queensland) Act 2001).
Under section 10 of the Commonwealth Act, an electronic signature is valid if it identifies the signer, indicates their intent to be bound, and uses a method as reliable as appropriate in the circumstances. SignBolt captures timestamp, IP address, and signer identity — which meets this "reliable method" test for ordinary commercial signing.
Certain document types are excluded from electronic-signing provisions in some states (wills, statutory declarations in some contexts, land titles documents). A purchase order is not in those excluded categories — electronic signature is valid.
This page is general information, not legal advice. For high-value or unusual arrangements, obtain a one-off review from a qualified Australian legal practitioner.
Questions we get about the Purchase Order template.
Yes, once accepted by the supplier. A PO is an offer to purchase; the supplier's acceptance (by confirming the order, shipping the goods, or issuing an invoice against the PO) creates a binding contract. If the buyer's standard T&Cs are referenced on the PO, they become part of the contract. If the supplier tries to impose their own T&Cs, the 'battle of the forms' rules determine whose terms prevail.
No — POs are usually reserved for larger or approved-only purchases. Small day-to-day spend (coffee, taxi fares, office supplies under a threshold) is typically handled via corporate card or expense reimbursement. Setting a PO threshold (e.g. all purchases over $500 require a PO) balances control with operational speed.
A PO is issued by the buyer before purchase, committing to buy. An invoice is issued by the supplier after (or at the time of) delivery, requesting payment. A PO represents a commitment to purchase; an invoice represents a demand for payment. Both reference the same underlying transaction and are matched in AP.
Yes. POs are commercial documents covered by the Electronic Transactions Act 1999 (Cth). Electronic signatures are valid. SignBolt produces an audit-trail PDF showing who approved the PO and when — which satisfies internal audit and ATO requirements.
Three-way matching is the accounts-payable control of matching three documents before paying an invoice: the PO (what was ordered), the receipt (what was delivered, also called a goods receipt note), and the invoice (what is being charged). All three should agree on quantity, price, and description. Mismatches trigger investigation — preventing duplicate payments, overcharges, and fraud.
Use a sequential number unique across your business. Common formats are PO-YYYY-NNNN (e.g. PO-2026-0001) or just PO-NNNNN (e.g. PO-10001). Never reuse a number. The sequence is what makes matching reliable, and gaps in the sequence are a red flag during audits.
Yes, but changes should be formalised as a PO amendment (referencing the original PO number) and re-sent to the supplier for acknowledgement. Verbal changes cause disputes and billing errors. Many larger systems issue amended POs with a version suffix (e.g. PO-2026-0001-A).
Free plan covers 3 documents per month — more than enough to get this signed today. No credit card required.