A purchasing invoice bills against a purchase order, and its defining requirement is matchability: the PO number prominent, line items corresponding one-to-one with the PO's lines (same descriptions, quantities, unit prices), quantities reflecting what was actually shipped/received, and any variances (partial shipments, substitutions, price changes) explicitly flagged. Buyers process these through three-way matching — PO vs. receiving report vs. invoice — and invoices that match auto-approve while variances queue for manual review. Partial deliveries bill per shipment referencing the same PO.
Purchasing Invoice Template
Reviewed by the Agiled editorial teamUpdated June 2026
When a purchase order exists, the invoice stops being a creative document — its only job is to match. The buyer's AP system will compare your invoice against the PO and the receiving report line by line, and the comparison has two outcomes: matched invoices flow to payment automatically; mismatched ones drop into an exception queue where a human investigates on their schedule, not yours. This template is built for the matched outcome: PO references where systems look, lines structured to correspond, and variances flagged honestly instead of discovered. Download it in PDF, Word, Excel, Google Docs, or Google Sheets, or generate a pre-filled version below.
Part of our free invoice template library — 80+ industry-specific templates in PDF, Word, Excel, Google Docs, and Google Sheets.
Your Company Name
123 Business St, City, State 12345
billing@yourcompany.com
INVOICE
INV-0001
Bill to
Client Company
Due
Net 30
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Product A | 50 | $25.00 | $1,250.00 |
| Product B | 100 | $10.00 | $1,000.00 |
| Shipping | 1 | $150.00 | $150.00 |
Download this invoice template
Pick a style, choose a format, and download — generated locally in your browser.
Style
Format
Fixed layout for sending and printing
Word
Editable in Word or Google Docs
Excel
Live formulas for recurring invoices
Or create and send invoices online
Create online- Governs
- The PO — match it exactly
- Processed by
- Three-way matching
- Variances
- Flagged, never silent
- Partial shipments
- Bill per delivery, same PO
What to include on a purchasing invoice
The PO number, unmissable
Top of the invoice, exactly as the buyer issued it. This is the key the matching system joins on — without it, your invoice is an orphan in their workflow.
Lines that mirror the PO
Same item descriptions (and item/SKU codes where the PO uses them), same units, same unit prices, in the same order. The match is line-level; the correspondence must be too.
Quantities as shipped, not as ordered
Bill what actually went out the door this shipment. Receiving will count what arrived; your invoice should agree with the dock, not the wish.
Variances flagged explicitly
"Line 3: substituted model B-204 per J. Whitfield approval 6/2" or "backordered, ships separately." A flagged variance processes in days; a silent one stalls for weeks.
Shipment references
Packing slip number, ship date, carrier/tracking — the links between your invoice and their receiving report, which is the third leg of the match.
Freight and charges per the PO's terms
Shipping billed only as the PO allows (prepaid-and-add vs. included), taxes per the buyer's exemption status, no surprise fees — extra charges the PO didn't authorize are auto-exceptions.
Remittance and terms from the agreement
Payment terms matching the PO or vendor agreement (the PO's terms govern, not your default footer), and remittance details matching their vendor file.
How purchasing billing actually works
The clean match: how it should flow
Order received → goods shipped with a packing slip → invoice issued same day referencing the PO and the slip → buyer's receiving confirms quantities → three-way match agrees → payment schedules automatically on terms. Your invoice timing matters: billing at shipment (not before) keeps the invoice and receiving report arriving in the right order, and same-day invoicing starts the payment clock at the earliest legitimate moment.
Partial shipments and backorders
When an order ships in pieces, each shipment gets its own invoice against the same PO: the lines bill shipped quantities, note remaining backordered amounts ('5 of 12 shipped; 7 to follow'), and reference their packing slips. Never invoice the full PO on a partial shipment — receiving will count the shortage and the whole invoice exceptions. The PO closes when cumulative invoices equal the order.
When reality diverges from the PO
Prices changed since the PO issued, items were substituted, quantities adjusted on the phone — divergence happens, and the rule is: paper before invoice. Get the PO amended (or written approval from the buyer) before billing the variance, then flag it on the line referencing the approval. Invoicing a price the PO doesn't show — even a correct, agreed price — without the reference is asking the AP clerk to take your word against their system. They won't; they'll queue it.
Invoicing mistakes that cost purchasing professionals money
Missing or mangled PO numbers
Wrong format, old revision, or absent entirely — the match fails at the join key and the invoice enters manual purgatory. Copy the PO number character for character.
Renaming the buyer's items
Your internal product names on lines the buyer ordered by their codes breaks line-level matching. Bill in their language — the PO's descriptions and SKUs.
Billing ordered instead of shipped
Invoicing twelve units when nine shipped guarantees a receiving mismatch on every line of the order. The dock count is the bill.
Smuggling charges
Freight, fuel surcharges, or handling fees the PO never authorized are flagged instantly and sour the vendor relationship. Get charges into the PO or approved in writing first.
Ignoring the exception
An invoice stuck in the buyer's exception queue won't free itself. If payment hasn't scheduled by terms minus a week, ask AP for the invoice's match status — the answer names the fix.
How to use this template
- 01
Download the template in your preferred format, or generate a pre-filled version with the download studio above.
- 02
Place the PO number prominently, exactly as issued.
- 03
Mirror the PO's lines — descriptions, codes, units, prices — billing quantities as shipped.
- 04
Flag any variance on its line with the approval referenced; amend the PO before billing when possible.
- 05
Reference packing slips and tracking, with freight and tax per the PO's terms.
- 06
Invoice at shipment, per delivery on partial orders, and check match status if payment hasn't scheduled on terms.
Skip this template if…
- Billing without a PO — use the business or standard invoice template and reference the contract instead.
- Issuing purchase orders — a PO is the buyer's document; this template is the seller's response to one.
FAQs
What is a purchasing invoice?
An invoice issued against a purchase order — the seller's bill for goods or services the buyer formally ordered. Its defining requirement is matchability: PO number, line-level correspondence with the order, and quantities reflecting actual shipment, because the buyer processes it through automated PO matching.
What is three-way matching?
The buyer's control process comparing three documents — the purchase order (what was ordered), the receiving report (what arrived), and the invoice (what's billed). When all three agree at line level, payment approves automatically; any disagreement creates an exception requiring human review, which is where invoices go to age.
How should an invoice reference a purchase order?
The PO number exactly as issued, placed prominently (most templates have a dedicated field near the invoice number), plus line items using the PO's own descriptions, item codes, units, and prices. Shipment references — packing slip numbers, tracking — connect the invoice to the receiving side of the match.
How do I invoice a partial shipment against a PO?
One invoice per shipment, each referencing the same PO: bill the quantities actually shipped, note the backordered remainder, and cite that shipment's packing slip. The PO closes when cumulative invoices equal the order. Billing the full order on a partial delivery guarantees a receiving mismatch.
What if the price changed after the PO was issued?
Get the PO amended or obtain written buyer approval before invoicing the new price, then flag the variance on the line with the approval referenced. An invoice price that disagrees with the PO — however legitimate — fails the match and stalls; the paper trail is what lets AP approve it.
Why is my invoice against a PO unpaid?
Almost always a match exception: missing/wrong PO number, line or price mismatch, receiving shortage, or unauthorized charges. Ask the buyer's AP team for the invoice's match status — they can see exactly which line failed and why, and the answer tells you whether to reissue, document a variance, or wait for receiving.
Need sending, reminders, and payments too?
Turn this template into a full invoicing workflow with Agiled.