Purchase order software for UK small businesses

FAQs on Xero's purchase orders

What is a purchase order?

A purchase order (PO) is a document you send a supplier to confirm what you want to buy, listing the goods or services, quantities, agreed prices, and a unique PO number. It sets out the order before anything's delivered, and once the supplier accepts it, it becomes a binding agreement. In Xero, you can raise, send and track POs, then turn an approved one into a bill to pay.

A purchase order (PO) is a document you send a supplier to confirm what you want to buy, listing the goods or services, quantities, agreed prices, and a unique PO number. It sets out the order before anything's delivered, and once the supplier accepts it, it becomes a binding agreement. In Xero, you can raise, send and track POs, then turn an approved one into a bill to pay.

What's the difference between a purchase order and an invoice?

A purchase order is sent by the buyer to order goods or services; an invoice is sent by the supplier to request payment for them. You raise a purchase order before the goods arrive, setting out what you want and the agreed price. The supplier sends the invoice afterwards, once they've delivered. In Xero, you can turn an approved purchase order into a bill to pay, so the two match up.

A purchase order is sent by the buyer to order goods or services; an invoice is sent by the supplier to request payment for them. You raise a purchase order before the goods arrive, setting out what you want and the agreed price. The supplier sends the invoice afterwards, once they've delivered. In Xero, you can turn an approved purchase order into a bill to pay, so the two match up.

What are the main types of purchase order?

The main types are standard for one-off purchases, planned for known items ordered when needed, blanket (standing) orders for repeat supply at agreed prices, and contract orders covering a set period.

The main types are standard for one-off purchases, planned for known items ordered when needed, blanket (standing) orders for repeat supply at agreed prices, and contract orders covering a set period.

Who creates a purchase order?

The buyer creates and issues the purchase order to the supplier. In a small business that's often the owner or office manager. In larger teams it follows an internal request and sign-off, so someone approves the spend before the order goes out. In Xero, user roles let you set who can create, approve and send POs.

The buyer creates and issues the purchase order to the supplier. In a small business that's often the owner or office manager. In larger teams it follows an internal request and sign-off, so someone approves the spend before the order goes out. In Xero, user roles let you set who can create, approve and send POs.

What is a purchase order number?

A purchase order number is a unique reference on each order, so you can track that order and match it to the supplier's invoice when it arrives. In Xero, you set your own numbering format to fit how you work.

A purchase order number is a unique reference on each order, so you can track that order and match it to the supplier's invoice when it arrives. In Xero, you set your own numbering format to fit how you work.

How do I create a purchase order in Xero?

In Xero, start from a template, add your supplier and the items you're ordering, then send the purchase order as a PDF or print it. You can build in approvals and see the status of every order, so nothing goes out without a check. Explore what's included across all Xero features.

In Xero, start from a template, add your supplier and the items you're ordering, then send the purchase order as a PDF or print it. You can build in approvals and see the status of every order, so nothing goes out without a check. Explore what's included across all Xero features.

How can I track my purchase orders?

Xero shows the status of every purchase order in one place: sent, filled, billed or unfilled. Add notes and expected arrival dates so nothing slips, and when an order's done, convert it straight into a bill to pay. That way tracking and paying happen in the same place, not across spreadsheets and email.

Xero shows the status of every purchase order in one place: sent, filled, billed or unfilled. Add notes and expected arrival dates so nothing slips, and when an order's done, convert it straight into a bill to pay. That way tracking and paying happen in the same place, not across spreadsheets and email.

Can I control who manages purchase orders?

Yes. Xero user roles let you decide who can access, approve, email and delete purchase orders. That keeps the right people in control and gives you a clear audit trail.

Yes. Xero user roles let you decide who can access, approve, email and delete purchase orders. That keeps the right people in control and gives you a clear audit trail.

What is purchase order software (a purchase order system)?

Purchase order software, sometimes called a purchase order system, is a tool for creating, sending and tracking your purchase orders in one place. Instead of juggling spreadsheets and email threads, you run your whole procurement process from a single system.

Purchase order software, sometimes called a purchase order system, is a tool for creating, sending and tracking your purchase orders in one place. Instead of juggling spreadsheets and email threads, you run your whole procurement process from a single system.

How are purchase orders paid?

A purchase order itself isn't paid. It records what you've agreed to buy. When the supplier invoices you, match that invoice to the order and convert the purchase order into a bill in Xero. From there, you pay and reconcile it like any other bill.

A purchase order itself isn't paid. It records what you've agreed to buy. When the supplier invoices you, match that invoice to the order and convert the purchase order into a bill in Xero. From there, you pay and reconcile it like any other bill.