An example of a purchase order showing where each figure comes from: $740 of goods, $37 discount, $75 shipping, $49.21 tax, $827.21 total. What follows is the same order taken block by block, priced from real inputs rather than shown as an empty grid, because the part people get wrong is not the layout but which figures belong where and in what order the discount and the tax are applied.
The header: who, when, and the number
Your business name and address, the supplier's, the order date and the order number. On the worked example that number is 1042. This block does almost all of the work later, because it is what a delivery note and an invoice quote back, and an order that cannot be quoted back cannot be matched to anything.
The lines: quantity, unit price, and the discount
One line per item with the quantity and the agreed unit price. On the worked example 40 units at $18.50 is $740, and a 5% discount takes $37 off to give $703 of net goods. The discount belongs on the document rather than in an email, because a discount that is not written on the order is a discount you will be arguing about when the invoice arrives.
The foot: shipping, tax and the total
Shipping stated separately, tax on the goods line, and the total. On the worked example $75 of shipping and $49.21 of tax on the $703 of goods gives $827.21. Stating shipping on the order is what stops a delivery charge appearing later as though it had always been extra.
The terms: delivery date and payment terms
When you need it and when you will pay. These two are left off more often than anything else and they are the two that decide whether a late delivery or an early payment demand is a misunderstanding or a breach of something you both agreed. Neither takes more than a line.
Questions people ask about example of a purchase order
What does a purchase order look like?
A header with both businesses, the date and the order number; one line per item with quantity and unit price; a foot with discount, shipping, tax and the total; and the delivery and payment terms.
Does it have to be on a form?
No. An email carrying all of those fields and a number is a purchase order. The form is a convenience; the number and the terms are the substance.
How long should we keep them?
As long as you keep the invoices they relate to, which for most US small businesses means at least the period your records retention obligations require. Check with your accountant for your own situation.