Procedure To Create and Send Purchase Orders in QuickBooks Online 

Purchase orders play a vital role in your bill reconciliation process. It’s a document that is sent by the buyer to the supplier to order products or to commit to paying for the services at some point in the future. When you create a purchase orders in QuickBooks Online, you give yourself a powerful tool to streamline your internal ordering, inventory management, and bookkeeping processes, as they are known as non-posting entries. It means that they don’t impact your financial statements.

What are the 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.

Know How to Create and Send Purchase Orders in QuickBooks Online!

If you want to create and send purchase orders in QuickBooks Online, it’s important to carry out the below-listed steps in a given sequence. Here’s how:

Step 01: Enable the Purchase Order Features

• 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.

Step 02: Create and Send Purchase Orders

Just for how to create and send purchase orders details

• 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.

Step 3: For Updating the Purchase Order Status and Add it to a Bill

Once you create a purchase order, the status is Open. Or, if your vendor accepts the purchase order, you can add it to an expense or bill to make your transaction official. When the supplier accepts a purchase order and sends the products, you have to record it as a bill or expense in QuickBooks Online.

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.

• Add 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.

How to Create a Purchase Order in QuickBooks Online

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.

Step 4: Check your open purchase orders

• 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

Wrap-up!

Hopefully, you now understand how to create and send purchase orders in QuickBooks Online after checking out the steps over here. Well, if you find issues while streamlining your internal ordering, inventory management, and bookkeeping processes, then don’t panic; just ping our experts to get your task done with much more ease.