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Operations template

Purchase Order (PO)

Quick answer

A purchase order to formally place an order with a supplier, specifying items, prices, and terms. When to use it: When ordering goods or materials from a supplier — a PO creates a clear record and reduces disputes.

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Key factsVerified June 2026
Fill in 1Your details
Fill in 2Supplier details
Fill in 3PO number & date
Fill in 4Items, quantities, prices
Fill in 5Delivery & payment terms

What's in it — and why

PO number & quotation reference

Unique identifier that links order, invoice, delivery and payment. Supplier must quote it on the invoice so three-way matching (PO–GRN–invoice) works.

Requirement: compliant FBR tax invoice

Conditioning payment on a proper Sales Tax Invoice (NTN/STRN, separate tax) protects the buyer's input-tax claim and avoids disallowed expenses.

Withholding-tax clause

Buyers acting as withholding agents must deduct income/sales tax at source and deposit it with FBR; stating this up front prevents payment disputes and penalties for non-deduction.

Delivery date & challan requirement

Fixes the deadline and requires a Delivery Challan, giving documentary proof of receipt for stock and tax records.

Inspection & rejection rights

Lets the buyer reject defective/non-conforming goods at the supplier's cost, protecting quality and cash.

Firm pricing / no escalation

Locks the agreed price so the supplier cannot raise rates after acceptance, keeping budgets predictable.

The template

Copy the text below (or download a Word copy) and replace everything in [BRACKETS].

================================================================
                       PURCHASE ORDER
================================================================
BUYER (ORDERING PARTY)
----------------------------------------------------------------
[BUYER COMPANY NAME]
[Address, City, Postal Code]
NTN: [BUYER NTN]      STRN: [BUYER STRN (if registered)]
Phone: [PHONE]        Email: [EMAIL]

----------------------------------------------------------------
PO Number: [PO-2026-0001]            Date: [DD-MMM-YYYY]
Quotation Ref: [QTN REF, if any]     Required By: [DD-MMM-YYYY]
----------------------------------------------------------------

SUPPLIER (VENDOR)
----------------------------------------------------------------
[SUPPLIER COMPANY NAME]
Attn: [CONTACT PERSON]
[Address, City]
NTN: [SUPPLIER NTN]   STRN: [SUPPLIER STRN]

DELIVER TO
----------------------------------------------------------------
[DELIVERY SITE / WAREHOUSE ADDRESS]
Receiving Contact: [NAME / PHONE]

Please supply the following goods/services per the terms below:

ORDER DETAILS
+----+----------------------------+-----+------+-----------+-----------+
| #  | Item / Description / Code  | Qty | Unit | Rate(PKR) | Amount    |
+----+----------------------------+-----+------+-----------+-----------+
| 1  | [DESCRIPTION]              | [Q] | [U]  | [RATE]    | [AMOUNT]  |
| 2  | [DESCRIPTION]              | [Q] | [U]  | [RATE]    | [AMOUNT]  |
| 3  | [DESCRIPTION]              | [Q] | [U]  | [RATE]    | [AMOUNT]  |
+----+----------------------------+-----+------+-----------+-----------+

   Subtotal ............................. PKR [SUBTOTAL]
   Discount ............................. PKR [DISCOUNT]
   Sales Tax @ [RATE %] ................. PKR [TAX]
   Freight / Other ...................... PKR [FREIGHT]
   ------------------------------------------------------------
   PO TOTAL ............................. PKR [TOTAL]
   ------------------------------------------------------------
Amount in words: [AMOUNT IN WORDS] Rupees Only.

TERMS & CONDITIONS
----------------------------------------------------------------
1. Supplier must issue a valid FBR Sales Tax Invoice (showing
   NTN, STRN, separate tax) quoting this PO number; payment is
   not released against non-compliant invoices.
2. Payment terms: [e.g. 30 days from receipt of compliant
   invoice & goods] via [METHOD].
3. Withholding: Buyer will deduct applicable income-tax /
   sales-tax at source at [RATE %] under the Income Tax
   Ordinance, 2001 and deposit with FBR; a deduction
   certificate will be provided.
4. Delivery: Goods to be delivered to the address above with a
   Delivery Challan by [REQUIRED DATE]. Time is of the essence.
5. Inspection: Goods subject to inspection on receipt; rejected
   items returned at supplier's cost.
6. Prices are firm and not subject to escalation unless agreed
   in writing.
7. Quantities/specs must match exactly; over-supply not
   accepted without prior approval.

AUTHORISED BY (BUYER)
----------------------------------------------------------------
_____________________            _____________________
Prepared by                      Approved by (Signature/Stamp)
================================================================

Relevant Pakistani law

  • Income Tax Ordinance, 2001 (withholding tax — payments to suppliers)
  • Sales Tax Act, 1990 (input-tax / compliant invoice requirement)
Note: A PO is a binding offer once accepted by the supplier — keep numbering sequential and retain with the matching invoice and delivery challan for at least 6 years. As a buyer you may be a withholding agent: confirm your obligation and deposit deductions with FBR by the due date, issuing the supplier a deduction certificate. Only expect/allow a sales-tax line if the supplier is FBR-registered. This is a template, not legal advice — have a lawyer review it before signing.

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