The quick answer
A purchase order communicates what you want to buy and on what terms. It helps the supplier, receiving staff and accountant agree on quantities and prices. It is not proof that goods have arrived or that payment has been made.
Use the editable template below to prepare an order. Check the actual purchasing workflow available in your software; a spreadsheet purchase order does not imply Dukanam offers every approval or procurement feature.
Before you begin
- Supplier identity and agreed contact details.
- Item codes, units, quantities and price basis.
- Delivery address, payment terms and an authorised approver.
See how the pieces connect
Specify
Describe goods and commercial terms.
Approve
Check budget and authorise the order.
Receive
Match delivered goods to the order.
Reconcile
Match the supplier invoice and payment.
Work through the steps
Identify the parties and reference
Give the order a unique number and date. Include the correct business and supplier names, delivery address and billing details. Keep a separate revision reference if agreed terms later change.
Describe items precisely
Use item code, specification, pack size and quantity unit. Ten cartons and ten pieces are different orders. Include an approved substitution policy so the supplier does not replace goods without agreement.
State the price basis
Clarify whether quoted prices include GST and how freight or discounts apply. Use the supplier quotation as evidence. A purchase order estimate should not be treated as a final tax invoice.
Agree delivery and payment terms
Record expected delivery date, destination, contact and payment milestones. Confirm partial delivery and return terms. Do not make an unsupported advance payment simply because an order has a professional appearance.
Approve and send the final version
Review quantities against demand and the available budget. Keep the approved copy and supplier acknowledgement. Staff should be able to distinguish a draft from the version actually agreed.
Match receipt and invoice
At arrival, compare the order with physical receipt and the supplier invoice. Record shortages, damage and agreed changes. Enter the actual purchase once, then allocate payments without treating the order itself as stock received.
A worked example
Order quantity differs from receipt
Illustrative order and partial delivery in the same unit.
| Record | Quantity | Meaning |
|---|---|---|
| Purchase order | 50 | Requested quantity |
| Goods received | 40 | Physical delivery |
| Outstanding | 10 | Await delivery or agreed cancellation |
Only the received goods belong in the physical stock balance. Resolve the remaining 10 units with the supplier and match the invoice to the agreed treatment.
Download the Excel templateEditable English template (.xlsx). Replace the sample details and verify the tax treatment before issuing a document.
Common mistakes to avoid
- Treating an order as a received purchase.
- Omitting pack size or GST price basis.
- Sending several contradictory revisions.
- Paying twice against an order and its invoice.
Questions you might have
Is a purchase order a tax invoice?
No. The supplier invoice documents the actual supply and its tax treatment; the order records the agreed request.
Can I use the template for every supplier?
Adapt it to the transaction and obtain supplier agreement. Special products or contracts may require additional terms.
Dukanam
A smart, low-cost choice for small-business GST billing
Dukanam brings billing, purchases, stock, customer balances, payments and reports together. It is built for Indian small businesses that want clear records without a complicated setup.
Best suited to shops that want connected everyday billing and bookkeeping, web and mobile access, and nine product languages. Choose the plan that includes the features you need.
GST-aware billing and preparation depend on your plan. Review records before filing on the GST portal; Dukanam does not directly submit GST returns, government e-invoices or e-way bills.
Current plans with GST preparation
- Advanced Plan₹299.00 per month
Check annual prices, limits, applicable taxes and checkout terms. Paid plans do not include a free trial.
Sources and further reading
Official rules and portal screens can change. Use the linked authority for the current requirements; the figures in our worked examples are illustrative.