Easy Way to Create and Send Purchase Orders in QuickBooks Online

Business

A purchase order is a business document usually prepared by the buyer against the supplier whenever they need to purchase any product or service. Moreover, this document is a commitment given by one party to another to buy the products as mentioned within the PO at a later date. However, you can create and send purchase orders in QuickBooks Online and reduce the task of internal ordering, inventory management, and bookkeeping processes. However, to gather more details regarding the Purchase orders, you must stick to this post for detailed information.

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How Can You Explain Purchase Orders in QuickBooks Online?

In QuickBooks Online, you have the tools to run all parts of the sales cycle, like purchasing. You can create and email purchase orders directly to the suppliers when you’re ready to buy more products. Purchase orders let the suppliers know your intent to make a purchase. You can enter specific items you wish to buy and the quantity on purchase orders.

Once your supplier accepts the purchase order and agrees to the given terms, you can quickly add it to an expense or bill transaction in QuickBooks Online. This will keep all the transactions connected and your accounts balanced. Many businesses forgo the method of entering purchase orders into their accounting software. This kind of mistake can cost you time and money.

Learn More Details to Create and Send Purchase Orders in QuickBooks Online

Are you facing problems while trying to create and send purchase orders in QuickBooks Online? In that scenario, you must perform the steps instructed below to get the desired results.

First Stage: Allow Purchase Order Feature To Run 

You must switch on the Purchase order feature, if it isn’t already on with the help of the steps written below. 

• You have to enable the purchase order feature if you haven’t done yet:
• To start off, navigate to Settings and then choose Account and settings.
• Now, hit the Expenses tab.
• Under the Purchase orders section, click the Edit icon.
• You must turn on the Use purchase orders options.
• If you wish to enter up to three custom fields and a default message for vendors. It’s optional.
• At last, tap on Save and then press Done.
• Note: Purchase order formats are set automatically, so you won’t be able to customize them.

Second Stage:- Generate and Then Send Your Purchase Orders 

Once you enable the Purchase Order feature, you must prepare and send them to the vendor by performing the steps below. 

• In the beginning, you need to select + New.
• Next, click on the Purchase order.
• From the Vendor drop-down, choose the vendor.
• After this, you are required to review the Mailing address.
• If you are shipping the products directly to a customer, tap on the Ship drop-down and then Ship via. Check the Shipping address to ensure it’s correct or not.
• Once done, type the Purchase Order date.
• You must go to Settings on the Purchase Order form, then on the Choose what you use panel, hit the link to add your own custom fields.
• Afterward, enter the products you wish to purchase under the Item details section. Note: You can only add products or services you marked as “I purchase this product/service from a vendor.”
• Now, select Save and close. Or if you’re ready to send it, tap on Save and send drop-down.
• If you decide to send the purchase order later, navigate to Expenses and find your purchase order, then hit Send in the Action column.

Third Stage: Make the Necessary Changes To Your Purchase Order Status and Mention Them Into Your Bill

Once your purchase order is prepared in QuickBooks Online, you will see the status as “Open.” Otherwise, if your vendor accepts your purchase order, then you can include them in the Expense or Bill column in the QBO application.

You have the option to add the purchase order as a line item. This will close the original purchase order, connect it to the bill or expense, and record the accounting accurately. Carry out the below-given steps to add purchase orders to expenses, bills, or cheques in QuickBooks Online.

Listing the Purchase Orders to an expense, bill or cheque

Perform these steps once your supplier accepts the purchase order:

• The very first step is to tap on Select + New.
• Now, click on Expense, Cheque, or Bill.
• From the Payee drop-down, choose the supplier. It opens a window with their open purchase orders.
• You must select Add for the correct purchase order. This will add the items from the purchase order. They will display in the Item details section.
• If you plan to bill a customer for a specific item, tick-mark the Billable checkbox and then add the customer you plan to bill in the Customer column.
• Finally, tap on Save and close.
• Add a particular part of purchase orders to an expense, bill, or cheque.

Including a particular part of purchase orders With an expense, bill, or cheque

When you receive only a part of purchase orders or make a partial payment, you can easily add just those parts to a bill or expense. This will link multiple transactions to the same purchase order:

• Initially, hit Select + New.
• Now, tap on Expense, Cheque, or Bill.
• You must choose the supplier from the Payee drop-down. It opens a window with their open purchase orders.
• Thereafter, click Add for the correct purchase order. This will add the items from the purchase order. They will display the Item details section.
• You are required to Adjust the quantity or amount for each line item to reflect the portion you received or a plan to pay for.
• To end the process, hit Save and close.

Fourth Stage: Thoroughly Review Your Open Purchase Orders 

After performing all the instructions above, you must cross-check the open purchase orders by implementing the below steps. 

• Head to Business overview, then click on Reports or click on Reports.
• Also, locate and run an Open Purchase Order List report, Open Purchase Order Detail report, Purchases by Product/Service Detail report, or a Purchases by Vendor Detail report.

Find another info: Top 10 Accounting Software For Small Business

To Summarize the Above!!

With this comprehensive post, we hope you can now easily create and seamlessly send purchase orders in QuickBooks Online. If you are finding any issues while preparing the PO, get help from our professionals anytime through the live chat facility. Our highly qualified bizbooksadvice experts will provide exceptional resolution ways to rectify the issue quickly.