I believe the following will do what you want.
WITH poupd AS
(SELECT LINE_STATUS,
LINE_TYPE,
PROMISE_DATE,
LEAD_TIME,
ITEM_NUMBER,
ORDER_UOM_CODE,
ORDER_QTY
FROM ppo_master_detail ponum,
supplierdetail sd
WHERE ponum.subscriber_id = 65
AND ponum.row_number=sd.row_number
AND ponum.po_number=sd.po_number
AND ponum.company_id=sd.company_id
)
UPDATE ppo_master_detail pmd
SET LINE_STATUS = poupd.LINE_STATUS
LINE_TYPE = poupd.LINE_TYPE
PROMISE_DATE = poupd.PROMISE_DATE
LEAD_TIME = poupd.LEAD_TIME
ITEM_NUMBER = poupd.ITEM_NUMBER
ORDER_UOM_CODE = poupd.ORDER_UOM_CODE
ORDER_QTY = poupd.ORDER_QTY
FROM pmd,
supplierdetail sdu
WHERE pmd.po_number =poupd.po_number
and pmd.company_id=poupd.company_id
and pmd.subscriber_id = 65
and pmd.row_number=sdu.row_number;
NOTE: Please avoid using uppercase and camelcase objects as PostgreSQL will convert them to lowercase
unless you quote them.