Top Reasons to Use Purchase Orders in QuickBooks Online

Purchase orders, commonly known as POs, are the official business documents that buyers send to the supplier or the vendor. It contains the information regarding the quantity and agreed price for a specific product that buyers want from the supplier. In short, it is a legally binding contract between your business and a third-party business. You can easily create Purchase Orders in QuickBooks Online whenever you wish to refill your inventory stock to fulfil the customer’s demand. Since purchase orders are binding contracts, you can cancel them anytime before the fulfilment of the order. However, once the order is fulfilled, you can not cancel it. Read this blog completely to learn more about this topic.

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How to Create Purchase Order QuickBooks Online?

Creating the purchase order in QuickBooks online is super easy. All you need is to go with the procedure mentioned below.

Step 1: Activate the Purchase Order in QuickBooks Online

Before creating the purchase order, you need to activate it in QuickBooks online.

• Login to QuickBooks Online and click on the settings option.

• Further, select the accounts and settings option and then press the expenses tab.

• Ahead, go to the purchase order section and press the edit button.

• Here, turn on the purchase order option.

Step 2: Create and Send purchase order

You can easily create purchase orders from QuickBooks online. If you are looking for how to enter purchase orders in QuickBooks online, then read the steps listed below.

• Login to your QuickBooks online by using the admin credentials. Make sure that you have activated the PO in QB.

• Click on the +New tab and choose the “Purchase Order” option.

• Ahead, select the supplier from the drop-down list, review the mailing option, and fill in the items as per your needs.

• Confirm the shipping address if the shipping is directly to the customer. 

• Also, mention the purchase order date and enter the items that you wish to purchase in the items detail. Here, you can only add the items/ products you marked as “ I purchased this product from a vendor.”

• Lastly, save the purchase order for the future or send it to the supplier now.

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Step 3: Update the Purchase Order Status 

When you create a purchase order QuickBooks online, the status of the PO is open. Once the supplier/vendor accepts it, you can add it to the billing item. The steps to follow for adding the PO to the billing are:

• Press the +New option and choose the expenses, check, or bill option.

• Now, select the vendor from the Payee drop list. The open purchase order window appears.

• Press Add for the correct PO. The items will be added and will appear in the Items Detail section.

• Click on the billable checkbox if you wish to bill the customer for a specific item.

• Lastly, press the Save button.

Crux of the Blog

Purchase Orders in QuickBooks Online is the easiest way to inform your vendor about your specific product requirements. You can easily create Purchase Orders in QuickBooks Online by simply following the steps mentioned above in this blog. In case you get stuck somewhere in the process, you can call our geeks immediately.

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