Purchase orders: what to check before you deliver
Read a purchase order for the terms that decide whether and when you get paid.
5 min read
When a business accepts your quotation, it usually sends a purchase order (PO): its own document saying what it is buying from you, at what price, and on what terms. Many sellers glance at the total and start work. That is how a supplier ends up delivering on terms they never agreed to — and waiting months for money.
Why the PO matters
For a business buyer, the PO is the authority to pay. Their accounts team will usually only pay an invoice that matches an approved PO: same items, same quantities, same prices, same PO number. If your invoice and their PO do not match, payment waits while someone sorts it out — and that someone is rarely in a hurry.
The PO also often carries the buyer's standard terms, sometimes on the back page or in an attachment. If you accept the PO without objecting, those terms may be what governs the deal.
Check it against your quotation
Before you accept, put the PO next to your quotation and check line by line:
| Check | What to look for |
|---|---|
| Your details | Your correct business name, address and GSTIN |
| Items and specification | Exactly what you quoted — grade, size, model, brand |
| Quantity and unit | Same quantity, same unit (pieces, kg, boxes, hours) |
| Price | Same rate, and whether it is before or including GST |
| Delivery | Address, date, and who pays transport |
| Payment terms | When they will pay, and from what date — delivery, invoice, or their acceptance of the goods |
| Penalties | Charges for late delivery, short supply or rejection |
| Billing instructions | What must be on your invoice: PO number, their GSTIN, a contact name |
Watch where the payment clock starts. "Payment in 30 days" from the date they accept the goods after inspection can be much later than 30 days from delivery. Know which one you have agreed to.
If something is wrong, say so before you start
If the PO differs from what you quoted — a lower price, a tighter date, longer payment terms, a penalty clause you did not agree — write back before you begin work. Point out the difference and ask for an amended PO. A polite email or WhatsApp message now is easier than an argument later.
Starting work on a PO you disagree with usually counts as accepting it.
Deliver to match
- Deliver what the PO says, in the quantity it says. If you can only part-supply, agree it in writing first.
- Quote the PO number on your delivery challan and your invoice.
- Get a signed and stamped receipt of delivery, with the date. It is your proof that the goods arrived and when.
Invoice to match
Your tax invoice should mirror the PO: the same item descriptions, quantities and prices, the PO number, and the buyer's GSTIN exactly as it is on their registration. Send it to the address or email the PO tells you to — often the accounts team, not the person who ordered.
Keep one folder per order: quotation, PO, any amendments, delivery receipt, invoice, and the payment when it comes. When a payment is late, the first question is always "can you send the PO and the delivery proof?" — answer it in one message.
Follow the payment
Note the due date the moment you invoice. If it is not paid on the due date, ask — politely, with the PO and invoice numbers. The routine in getting paid on time applies to business customers just as much, and business buyers expect to be reminded.
If you are a registered MSME, there may be rules that help small suppliers get paid on time by larger buyers. Ask a CA what applies to your situation.
The invoice maker below builds a GST invoice with the buyer's details and the line items — add the PO number so it matches what the accounts team expects.