Free Purchase Order Template for Small Business in Saudi Arabia
July 02, 2026By InvoicePlus Team
A purchase order (PO) is one of the most important documents for any business that buys goods or services from suppliers. For small businesses in Saudi Arabia, using a professional purchase order template helps you track orders, manage expenses, and maintain proper records.
This guide provides a free purchase order template designed for small businesses in Saudi Arabia, along with best practices for using POs effectively.
What is a Purchase Order?
A purchase order is a document issued by a buyer to a seller that authorizes a purchase. It is a legally binding contract that specifies:
- What is being purchased
- Quantity and price
- Delivery terms
- Payment terms
Why Small Businesses in Saudi Arabia Should Use Purchase Orders
Better Expense Tracking
Every PO creates a record of what was ordered, from whom, and at what price. This makes budgeting and accounting much easier.
Dispute Prevention
With a signed PO, both parties agree on price, quantity, and terms upfront. This prevents "I thought the price was different" disputes.
Inventory Management
POs help you track what's on order and what's been received. This is essential for businesses that hold inventory.
VAT Compliance
For VAT-registered businesses, POs provide the documentation needed to support input VAT claims.
Essential Elements of a Saudi Purchase Order
1. PO Number
Use sequential numbers: PO-2026-001, PO-2026-002, etc.
2. Supplier Information
Full supplier name, CR number, VAT number, address, and contact details.
3. Your Company Information
Your company name, CR number, VAT number, and address.
4. Order Date and Delivery Date
When the PO is issued and when delivery is expected.
5. Item Details
For each item:
- Item description
- Quantity ordered
- Unit price
- Total price
6. Financial Summary
- Subtotal (excluding VAT)
- VAT at 15%
- Grand total
7. Delivery Address
Where the goods should be delivered.
8. Payment Terms
When and how the supplier will be paid. Common terms: Net 30, Net 60, or milestone payments.
Free Purchase Order Template Structure
```
PURCHASE ORDER
PO Number: PO-2026-001
Date: [Date]
From (Buyer):
[Your Company Name]
CR No: [Your CR]
VAT No: [Your VAT]
[Your Address]
To (Supplier):
[Supplier Company Name]
CR No: [Supplier CR]
VAT No: [Supplier VAT]
[Supplier Address]
Delivery To:
[Delivery Address]
Required By: [Delivery Date]
| # | Description | Qty | Unit Price | Total |
|---|-------------|-----|-----------|-------|
| 1 | [Item] | [Qty] | [Price] | [Total] |
Subtotal: [Amount] SAR
VAT (15%): [Amount] SAR
Grand Total: [Amount] SAR
Payment Terms: Net 30
Delivery Terms: [FOB / CIF / Ex-Works]
Authorized By: [Name]
[Signature]
```
Common Purchase Order Mistakes
No PO Number
Without a unique PO number, tracking orders becomes chaotic.
Missing VAT Information
Your PO should show VAT separately for proper input VAT claims.
Incomplete Item Descriptions
Be specific. "Office supplies" is too vague. "20 boxes of A4 copy paper, 80gsm" is specific.
No Delivery Date
Always specify when you need the goods. Without a date, suppliers may prioritize other orders.
Create Purchase Orders Online Free with InvoicePlus
InvoicePlus offers a free purchase order maker designed for Saudi small businesses:
- Professional templates
- Automatic 15% VAT calculation
- Sequential PO numbering
- Arabic and English support
- PDF download
- No sign-up required
Stop using handwritten POs or Word documents. Create professional purchase orders in minutes with InvoicePlus.
Create Your Free Invoice Now →