Inventory how-to
What to include on a purchase order
A purchase order needs enough detail that your supplier can fill it correctly and you can check it against what arrives.
Short answer: A purchase order needs enough detail that your supplier can fill it correctly and you can check it against what arrives. At minimum: a PO number, supplier details, your shipping address, line items with SKU and quantity, cost per unit, and expected delivery date.
Header information
Put a unique PO number on every order so you and the supplier can refer to it in emails and invoices. Include the order date, your business name, billing and shipping addresses, and a contact name and phone number in case the supplier has a question about the order.
Supplier details
List the supplier name, their account or vendor number if they use one, and the contact you deal with. If you order from the same supplier often, keeping this consistent makes it easier to match POs to invoices later.
Line items
Each line should show the SKU or supplier's item code, a short product description, quantity ordered, unit cost, and line total. Group items by case pack size if the supplier sells in multiples, so there is no confusion about whether "10" means 10 units or 10 cases.
Terms and dates
State the expected delivery or ship date, payment terms if agreed in advance, and any instructions about packaging or labeling the supplier needs to follow. If you have a required delivery window, say so clearly rather than leaving it open-ended.
Totals and sign-off
Show a subtotal, any shipping or freight cost if known, and a grand total. Include a space or note for approval, so there is a record of who authorized the order before it was sent.
Step by step
- List a unique PO number, order date, and your shipping address at the top
- Add the supplier name and contact details
- List each SKU with description, quantity, unit cost, and line total
- Note the case pack size if the supplier ships in multiples
- State the expected delivery date and any payment terms
- Show a subtotal and grand total
- Keep a record of who approved the order and when
Worked example
A storeowner orders from a ceramics supplier: 48 mugs at $4.50 each and 24 plates at $7.00 each. The PO lists SKU MUG-001, quantity 48, unit cost $4.50, line total $216.00, and SKU PLT-002, quantity 24, unit cost $7.00, line total $168.00. The subtotal is $384.00, plus a flat $25 freight charge, for a grand total of $409.00, with an expected delivery date two weeks out.
How SteadyShelf helps
SteadyShelf drafts purchase orders with SKU, quantity, supplier, and cost already filled in based on your forecast, and emails them to the supplier once you approve. It does not handle landed cost calculations or multi-location orders, so if you split stock across warehouses you will need to manage that split manually.
$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related guides
- What to look for in inventory software for Shopify
- What to track in an inventory spreadsheet
- When should you place your holiday inventory order
- What to do with excess inventory after the holidays
All inventory how-to guides ยท Inventory glossary
FAQ
Do I need a PO number if I only have one supplier?
Yes. A PO number still helps you track orders over time and match them against invoices and received stock, even with a single supplier.
Should I include payment terms on every PO?
Include them if they are not already fixed in a standing agreement with the supplier. If terms vary by order, state them explicitly so there is no dispute later.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
Get early access