How to Create a Purchase Order

How to create a purchase order: the required fields, the difference from a purchase requisition, and what happens after it's sent.

How to Create a Purchase Order

What a purchase order needs to include, how it differs from a requisition, and what happens once it's sent to a supplier.

By Tibeau De Grauwe, FounderUpdated July 2026

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What a purchase order needs

A purchase order needs a unique PO number, supplier details, ship-to address, itemized SKUs with quantity and agreed unit price, a requested delivery date, and payment terms. The PO number is what lets you match the eventual delivery and invoice back to this specific order.

Purchase order vs. purchase requisition

DocumentPurpose
Purchase requisitionInternal request to buy something, typically needing approval
Purchase orderFormal document sent to the supplier once the requisition is approved

What happens after the PO is sent

1. Confirmation

The supplier confirms the order and ships against the agreed quantities and dates.

2. Receiving

Goods arrive and are checked against the PO's ordered quantities before being added to stock.

3. Three-way match

Invoice, PO, and receiving record are compared before payment is released.

Automating the PO step

Once a reorder point is hit for a SKU with a known supplier and agreed price, StockFlow's automated reordering can draft the PO with the right quantity pre-filled turning "remember to order more" into a quick review-and-send step. See what is procurement for how the PO step fits into the full purchasing process. Not ready for software yet? Start from a free purchase order template instead.

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Frequently asked questions

What information does a purchase order need?
A PO number, supplier details, ship-to address, itemized SKUs with quantity and agreed unit price, requested delivery date, and payment terms. Without a unique PO number, matching the eventual invoice and delivery back to the original order becomes guesswork.
What is the difference between a purchase order and a purchase requisition?
A purchase requisition is the internal request to buy something, usually needing approval. A purchase order is the formal, external document sent to the supplier once that request is approved it's what the supplier actually receives and fulfills against.
What happens after a purchase order is sent?
The supplier confirms and ships. When goods arrive, they should be checked against the PO quantities (receiving). The invoice is then matched against the PO and the receiving record a three-way match before payment is released.
Can purchase orders be generated automatically?
Yes once a reorder point is hit for a SKU with a known supplier and price, a draft PO can be generated automatically with the right quantity and supplier pre-filled, needing only a review and send instead of being built from scratch each time.