Creating a purchase order takes a minute and determines how much work an invoice generates six weeks later. Three fields cause most of the trouble, and all three are easy to get right at creation and expensive to correct afterwards. Knowing which they are turns order raising from a clerical task into a small act of prevention.
The supplier's legal entity
Groups invoice from entities that are not the trading name you know. An order raised against the wrong entity produces an invoice that will not match, and creating a second supplier record to fix it splits payment history and breaks duplicate detection. Confirming the correct entity once, when the supplier is set up, prevents a recurring problem.
Units of measure
Ordering by box and being invoiced by unit produces a quantity mismatch that is nobody's error and takes a person to resolve, every single time that supplier bills you. Agreeing units with the supplier and recording them on the order is a one-off conversation that removes a permanent source of exceptions.
Prices, including what is excluded
The unit price and whether delivery, packaging or tax are included. An order that omits freight will mismatch every invoice that adds it, which is a tolerance problem masquerading as a pricing one. Being explicit about what the price covers is what makes tolerance meaningful rather than a blanket allowance for surprises.
Questions people ask about create a purchase order
What should always be on the order?
Unique number, date, supplier legal entity, lines with description, quantity, unit of measure and unit price, delivery address and date, and your payment terms.
Should the order say what happens if it is late?
Your standard terms cover it. Including them on the order is what lets you rely on them if the supplier's invoice states something different.
Can we amend an order after sending it?
Yes, and the amendment should be a dated revision rather than an overwrite, and above a threshold it should go back for approval.