A purchase order is the written record of what you asked a supplier to send, at what price and on what terms. A vague one leads to wrong quantities, surprise costs and arguments nobody can settle. This guide covers what to include, how to create one in Shopify, and what to check before you send it.
What a purchase order must include
Every purchase order should answer the same questions: who is buying, who is selling, what is being bought, for how much, and when it is due.
- PO number: A unique reference both sides can quote
- Your details and the supplier's: Business names, addresses and contacts
- Order date: When you placed it
- Ship-to address: The location receiving the stock
- Payment terms: When and how you will pay
- Expected delivery date: The date you agreed
The line items
The line items are where most errors happen. Use the supplier's own product codes alongside yours, so there is no doubt which item you mean.
| Field | Why it matters |
|---|---|
| Supplier SKU and your SKU | Avoids the wrong variant being shipped |
| Description | Size, color, material, pack size |
| Quantity | In units, with the unit of measure stated |
| Unit cost and currency | Sets the price for the invoice |
| Tax and line total | Lets you check the invoice later |
Terms worth writing down
Anything you agreed by phone or chat belongs on the purchase order.
- Shipping: Method, who pays, and who is responsible in transit
- Packaging and labeling: Barcodes, carton labels, inner pack sizes
- Quality: The spec or sample the goods must match
- Shortages and damage: How they are reported and credited
- Late delivery: What happens if the date is missed
Creating one in Shopify
Shopify has a purchase order feature in the admin. According to the Shopify Help Center, you go to Products > Purchase orders and click Create purchase order. Before you start, set up your suppliers and turn on inventory tracking for the products.
- Supplier: Select an existing one or create a new one
- Products: Add products that already exist in your store, with quantity, and optionally supplier SKU, cost and tax
- Details: Optional reference number, note to supplier, payment terms and supplier currency
- Save as draft: Drafts can be edited freely
- Export PDF: Under More actions, to send to your supplier
- Mark as ordered: Once the supplier confirms. Shopify notes this cannot be undone
After a purchase order is marked as ordered, you can create an inventory transfer for it to track the shipment and receive the stock.
Check it before you send it
A few minutes of checking saves weeks of correcting.
- Quantities: Do they match your reorder plan and the supplier's minimums and pack sizes?
- Costs: Do they match the latest quote?
- Dates: Is the delivery date realistic for the lead time?
- Confirmation: Ask the supplier to confirm the order in writing
When the stock arrives, count it against the purchase order, then match the invoice to both. For the quantities, see how to calculate a reorder point.
Doing this at scale
StockSense forecasts per-SKU demand from your order history and recommends a reorder point, quantity and date for each SKU. It ranks SKUs by revenue at risk and drafts purchase orders grouped by supplier. See StockSense.