How-to guide

How to set up purchase orders for a small business

Purchase orders stop the two classic problems: paying for things nobody ordered, and forgetting things that never arrived. A small business doesn't need a finance system for it - just a numbered log and a habit.

Published 8 Nov 20264 min readBy metre2

Quick answer

Give every order a PO number, record what was ordered and agreed, chase what's late, and only pay an invoice that matches. Open the Metre2 Purchase Order Log in your browser - it's free for 15 days, then a one-off price, and nothing you type is uploaded.

Number every order

Use a simple sequence (PO-0001, PO-0002...) and ask suppliers to quote it on their delivery notes and invoices. No PO number, no payment.

Record what was agreed

Supplier, items, quantities, price, delivery date and who approved it. Agree a spending limit above which someone else signs off.

Chase deliveries

Keep an eye on orders past their delivery date and chase them before they hold up the job.

Match before you pay

Check the invoice against the PO and the delivery: right items, right quantities, right price. Only then mark it to pay. That one step catches most overcharges and duplicate invoices.

Close it off

Mark the order paid with the date and invoice reference, so the log shows what's still outstanding at a glance.

Do it in the Metre2 Purchase Order Log - 15 days free in your browser, or as a Windows app.

Use it in your browser - free, no sign-up Get the Windows app More about Purchase Order Log

Common mistakes

Raising the PO after the invoice arrives.
Paying invoices that don't quote a PO number.
Not recording part-deliveries.

Frequently asked questions

Do I need accounting software for this?

Not to start with. A clear log with statuses from draft to paid does the job for most small firms.

Can it show what's late or unmatched?

Yes. Purchase Order Log flags overdue deliveries and orders awaiting an invoice match, and keeps a dated history of every status change.