Keeping a track of a particular item is necessary to maintain the record of your purchase order for future reference. The purpose of recording the items can be fulfilled with the help of the QuickBooks purchase order feature in QuickBooks. Moreover, a purchase order tells you the complete information about the item’s quantity and price details. Knowing this much detail is not sufficient if you are running your business. You must know how to create a purchase order in QuickBooks to keep the records in one place.
Let’s discuss the steps of how to create a purchase order in QuickBooks Online. The steps will help you in keeping a permanent record of the business items.
What does QuickBooks Purchase Order Mean?
The main purpose of a QuickBooks purchase order is to tell some vendors that you need to buy some item. In other words, we can say that the purchase order is a contract to buy items and tells QuickBooks that you have to create a purchase order by selecting Vendors and choose Purchase Orders.
A purchase order must contain the underneath information regarding a transaction.
- Price of the item
- The name of the buyer and seller
- Mode of payment
- Delivery date
- Service type or item you want to purchase
Also Read: FreshBooks vs QuickBooks: A Comparison
How to Create a Purchase Order in QuickBooks?
Here are the complete steps that can help you out in the context of “how to create a purchase order in QuickBooks Online.”
Step 1: Turning on the purchase order feature
- Initially, choose Settings and click on Account and settings.
- After that, go to the Expense tab.
- Next, choose the purchase orders section and click on the Edit option.
- Here, turn on Use Purchase Orders.
- And then, you can choose three custom fields and a default message for vendors (Optional).
- Finally, click on Save and then choose Done.
Step 2: Creating and sending a purchase order
- The first step is to choose + New.
- After that, click on Purchase Order and click on the vendor from the vendor drop-down.
- Now, review your mailing address.
- Choose the Ship via from the ship to drop-down if you are shipping the items directly to a customer.
- And then, write down the Purchase Order Date.
- Click on Settings and go to the Choose what you use panel.
- Next, select the link to add your custom fields.
- Write down the products that you have to buy in the Items Details section.
- Finally, choose Save & Close. And if you are all set to send it, then choose Save and Send.
Step 3: Updating the Purchase Order Status and add it to the Bill
Make sure that the status is open while creating a purchase order. After the purchase order gets accepted by the vendor, add it to an expense or bill to add the transactions officially. And, follow the steps written below to add a purchase order to a bill, or a check.
- First of all, choose + New
- After that, click on Expense, Bill, or Check.
- Choose the Vendor from the Payee drop-down. Then you will get an open purchase orders window.
- And then, click on Add for the right purchase order and add the items from the purchase order. Now, the item section will get appeared.
- Finally, click on Save & Close.
Step 4: Check your open QuickBooks Online Purchase Order
- Firstly, choose the Reports menu.
- Look for the Open Purchase Order List report, Purchase by Vendor Detail report, Open Purchase Order Detail Report, or Purchase by Service Detail Report.
Ending the Post!
Effectively, the above post has made your concept clear regarding “QuickBooks Purchase Order” and the reason behind creating it. All the detailed steps have been written down in this post that will guide you in creating a purchase order in QuickBooks Online. If you are facing any issues while doing the same or are interested to get some detailed knowledge, kindly get in touch with our experts at QASolved. We are available all round the clock just to provide you with instant technical services. So ring us today and make your software run faster.