Freelancing guide
Posted on Sep 16, 2025
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Key Takeaways
Always request a PO before starting work. It protects you legally, prevents scope creep, and ensures timely payments.
Make sure the PO includes essential fields, such as PO number, currency, payment terms, deliverables, and tax/FX clauses to avoid disputes.
Confirm PO acceptance in writing (via email or signature) by restating key terms, such as timeline, deliverables, and payment milestones.
Match every invoice to the PO. Missing or incorrect PO numbers are the #1 reason for delayed international payments.
Clarify responsibilities upfront (FX fees, taxes, shipping, IP ownership) to avoid hidden costs or disagreements later.
If you’ve ever worked with an international client, you’ve probably faced one of these headaches: delayed payments, unclear scope, or last-minute disagreements about what was actually agreed upon.
Many Indian freelancers and small businesses learn this the hard way. The client says, “We’ll sort the paperwork later,” but when it’s time to send the invoice, finance teams ask for a Purchase Order (PO) you never received. Suddenly, your payment is stuck in limbo.
So what exactly is a purchase order, and why is it so important? In this guide, we’ll break down everything you need to know about purchase order formats for international clients. You’ll learn how POs differ from quotes and invoices, the essential fields to include, clauses specific to exports and services, how to accept POs as a freelancer, and common mistakes to avoid.
What is a Purchase Order? How it differs from Quote, Estimate, and Invoice
A purchase order (PO) is a legally binding document that lists what the client is buying, at what price, under which terms, and when you’ll get paid.
An international purchase order can also cover complex areas like currency, taxes, and even who pays the bank transfer fees. Without it, you’re exposed to disputes, scope creep, and frustrating payment delays.
Here’s how a purchase order differs from Quote/Estimate and Invoice:
Document | What It Is | Legally Binding | When Issued | Key Purpose |
Quote/ Estimate | Client requests (“What will this cost?”) or you offer a cost for work/services/products. Not a contract, just a proposal. | No | Early in the sales cycle (before the client decides). | To give cost expectations, scope, help clients choose. |
Purchase Order (PO) | The buyer formally orders what they want you to deliver / provide. It confirms items, pricing, terms, etc. | Yes | After a quote is accepted (sometimes after negotiations). | Acts as binding order, aligns both parties on deliverables, terms, and payment triggers. |
Invoice | You bill the buyer for goods/services delivered (or per milestones). | Yes | After delivery or milestone as per PO. | To request payment; must align with PO to avoid rejection. |
Read More: What is a Proforma Invoice? How to Use it?
Essential fields in an International PO
For Indian freelancers and exporters, an international PO must clearly cover commercial, legal, and payment terms. Key details must include:
PO number & date: Unique identifier; helpful for tracking, matching invoice & delivery.
Buyer & Seller details: Legal names, addresses, tax/GST/VAT/equivalent IDs, country.
Currency, payment terms: Which currency is used (USD, EUR, etc.), payment due date (Net-30, On receipt, milestones), who bears FX risk/conversion.
Itemised list of goods/services: Description, quantity, unit rate, total. For services: name of task, number of hours, rate.
Delivery dates / timelines: When you are expected to deliver goods or services, or milestones if relevant.
Shipping & billing addresses: Especially if goods are physical. For services, specify where the client wants deliverables sent/delivered.
Incoterms (for goods exports): E.g. FOB, CIF, DDP, etc. Who pays shipping, insurance, customs / import duty.
Tax/duty responsibility: E.g. who handles customs, export duties, withholding taxes, GST/VAT implications:
IP/confidentiality clause (for services / works with intellectual property): Who owns IP rights (before, during, after), confidentiality of work product, etc.
Accept/signature/acceptance clause: How the PO must be accepted (via signature, email confirmation), plus legal binding language.
Other general terms & conditions: Penalties for delay, liability, insurance, inspection, change orders, term & termination, etc.
Here’s a sample purchase order format:
Sample: Invoicetemplate
International considerations for Indian sellers
Because you are operating from India and dealing internationally, there are a few extra things that you should check in international purchase order. These include:
Currency conversion & FX clause
Make clear whether you or the client bears the exchange rate loss/gain. For large durations, sometimes include a clause that if the exchange rate changes beyond X%, revision is possible.
Pro Tip: Always check the live currency conversion rate before sending invoices.
Tax handling
If services are exported, generally IGST/GST may be exempt if conditions are met.
Many clients abroad require taxes be withheld per treaties. Hence, you may need to provide a Tax Residency Certificate, Form 10F, etc. Eg: Bayer’s PO terms require withholding tax details, TDS, etc.
PAN/GST registration can matter.
Shipping/delivery terms (for goods)
Use proper Incoterms (FOB, CIF, DDP etc) so that it’s clear who bears cost/risk at every stage. Standard PO templates from Indian importers/exporters often show FOB or DAP terms. For example, Genus’s standard terms for import POs include clauses on FOB/FCA, bank charges, responsibilities.
Accepted payment rails/platforms
Ensure your PO or contract mentions the method via which you’ll receive international payments. You can use Infinity or any other payment platform to receive cross border payments.
Document compliance for exports/services
Export documentation (if physical goods), GST/IGST export rules, customs invoice, packaging & shipping documentation. For services, certificate of export of services, if needed.
How Freelancers Should Accept and Confirm a PO?
Acknowledge and confirm in writing since having a PO isn’t enough. You must formally accept it so both sides are in agreement.
Best practices include that you should respond in writing (email) acknowledging the PO, restate key terms (deliverables, timeline, payment, acceptance) to avoid misunderstandings.
Sample PO acceptance email
Subject: Acceptance of Purchase Order #PO-2025-0987
Hi [Client Name],
Thanks for sending the PO. I confirm acceptance of Purchase Order PO-2025-0987 dated 1 September 2025, for 20 articles at USD 100 each, with timelines as specified: first-5 by 15 Sept, balance as per schedule. I understand the payment terms of 30% advance and remaining 70% on final delivery. All deliverables will be in USD; client bears transfer / FX charges.
Looking forward to starting.
Regards,
[Your Name]
Bookkeeping Flow
PO → Sales Order → Invoice → Payment Received
If no advance is mentioned, freelancers often negotiate milestone payments. Always ask for 20–30% upfront, especially with first-time international clients.
Receiving Payments from International Clients
International payments can be delayed for weeks if the process isn’t crystal clear. That’s where your purchase order acts as a trigger for payments. Most global companies will not process your international invoice unless it references a valid PO number.
Make sure to always match your invoice with the PO to avoid unnecessary back-and-forth.
If you are looking for a low-cost and transparent solution to receive payments from international clients, try Infinity. It helps businesses and freelancers accept foreign payments in over 30+ currencies.
With Infinity, you get:
Zero FX markup and conversion at live FX rates.
Flat 0.5% all-inclusive fee so there’s no surprises, no hidden deductions.
1-day settlement. The funds hit your INR account faster than banks or PayPal.
Save thousands annually. For example, on a $1,000 payment you could receive ₹4,350 more than a bank transfer and ₹5,200 more than PayPal.
Option to receive payments in 50+ currencies supported.
Fully RBI-approved with compliance taken care of, including free FIRA for every withdrawal.
For freelancers and exporters, this means you no longer have to worry about chasing better FX rates or wondering how much will finally land in your account. Infinity makes the process transparent, compliant, and quick.
Now, another area that trips up many freelancers is who pays the fees. International transfers often involve hidden deductions by intermediary banks or conversion losses. Spell out in the PO who will bear FX and transfer charges. Additionally, request partial advance to ensure commitment. So, if a client delays payment, the PO gives you solid legal backing.
Common mistakes in international POs and how to avoid them
Mistake | Risk / Consequence | How to Avoid |
Missing PO number on invoice | Invoice may be rejected or delayed by client’s finance / procurement dept. | Always include PO number in invoice. |
Vague descriptions of deliverables | Dispute over what was expected vs delivered. | Be specific: item description, quantity, quality, format, revision limits. |
No delivery timeline or vague dates | Client may expect earlier delivery; you may overcommit. | Include delivery / milestone dates clearly. |
Not defining currency / FX responsibility | Surprises in payment amount, loss due to rate changes. | State currency and who bears conversion / bank fees. |
Not specifying tax / customs / import / export responsibilities | Extra unexpected cost, legal complications. | Include these clauses clearly. |
Not having IP / confidentiality / ownership clauses | You may forfeit rights, or be exposed to misuse of work. | Include clear ownership & confidentiality terms. |
Downloadable templates and walkthrough
Download here: Zoho Inventory PO Template
Download here: PO Template
Final Thoughts
Working with international clients demands professionalism and legal clarity. A purchase order is your best tool as it ensures trust, defines payments, and simplifies bookkeeping. Download the free templates, start using them for every overseas client, and avoid common mistakes. This small step gives you stronger contracts and faster payments.
Sign up with Infinity to receive international payments!
FAQs
Is a purchase order the same as an invoice?
No. A PO is the buyer’s order, stating what they want, with agreed terms. An invoice is what you send to request payment after fulfilling the work (goods/services) as per the PO.
Do freelancers need to accept a PO before starting work?
Yes. Accepting in writing (email, signed document) helps ensure both parties are aligned. It protects you from scope creep, scope changes, or payment issues.
What are Incoterms and do I need them in a PO?
Incoterms are standard international commercial terms (FOB, CIF, DDP, etc.) that define responsibility of buyer/seller for shipping, insurance, customs, and risk. If you are exporting goods, you almost always need them. For services, not relevant in most cases.
Can I raise an invoice without a PO from the buyer?
Yes, but it’s riskier. Without a PO, the buyer may dispute invoice amounts, delay payments, or reject invoice if their internal procurement process mandates a PO. Having a PO gives you stronger backing.
Where do I add PO number on my invoice to avoid payment delays?
You must make it prominent at the top of the invoice, near invoice number, perhaps in header. Also ensure invoice references: PO Number and date. This helps the finance department match your invoice to their internal PO.
