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GuidesMarch 20, 2025

Purchase Order (PO) Numbers: What They Are and How to Use Them

By Tom Baker

Purchase Order (PO) Numbers: What They Are and How to Use Them

Learn why large clients use Purchase Order numbers, where to put them on your invoice, and why including them is critical for payment.

If you work with large corporations or government entities, you will inevitably deal with a Purchase Order (PO) number. Ignoring it guarantees payment delays.

What is a Purchase Order (PO)?

A PO is a legally binding document issued by the *buyer* to the *seller*. It authorizes a purchase and defines the terms and conditions. It is essentially the client's internal budget approval.

PO vs. Invoice

DocumentCreatorTimingPurpose
Purchase OrderBuyer (Client)Before the workAuthorize the purchase/budget
InvoiceSeller (You)After the workRequest the payment

Why the PO Number is Critical

A client’s Accounts Payable department will often **not process your invoice** without a valid, matching PO number. It's how they link your request to their internal authorization.

Where to Put the PO Number

It should be clearly visible near the top of your invoice, close to the Invoice Number and Due Date.

Invoice ASAP includes a dedicated field for PO numbers, ensuring you never forget to include this crucial detail when billing larger clients.

Tags:

#purchase-orders#b2b#client-relations#invoicing

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