Purchase order can be simply created in QuickBooks online with the help of certain tools. The tools run all the parts of the sales cycle including the purchase. You can send the purchase orders easily using email directly after creating it. The sale can analyse your purchase intentions using the purchase orders.
What is a Purchase Order?
A purchase order is a document sent by the buyer to the supplier for ordering the products. This is a sort of proof that the buyer commits to pay for the service in the future. Purpose of the purchase order:
It is an internal control document that prevents your staff from accepting and paying for the services that have not been purchased by the company.
This is the type of order that is done for the service or a product by the buyer to the vendor. It also explains the terms and services that you want to use, the price that you are expecting to pay for the services or the product you are willing to buy.
If the supplier accepts the terms and conditions, he accepts the purchase order. Next you have to add it to your exchange expenses or bill transaction into the QuickBooks online account. This interlinks all the transactions and the account gets balanced properly.
How to create a purchase order in QuickBooks online?
Here we discuss the steps to create a purchase order in QuickBooks online. Follow these simple steps for creating a purchase order:
Step 1: Turn on the feature of purchase order
- Reach the settings option (gear icon) in the QuickBooks online.
- Reach the account and settings option.
- Move to the expenses tab followed by selecting the purchase order.
- Click on the Edit icon and turn on the option “Use Purchase Order”.
- You can enter three custom fields and you can also set a default message for the supplier.
- Click save and done.
Step 2: Sending the purchase order
- Click on the New + icon for creating a new purchase order.
- Select the option ‘purchase order’.
- From the drop down of the supplier, choose the supplier for whom the purchase order is to be created.
- Review the mailing address and click on Ship to drop down.
- Choose the option ship via option, if the shipping products are sent directly to the customer.
- In the purchase order date field, enter the date.
- Move to the gear icon and for adding the custom field, choose the panel “Choose what you see”.
- In the Item details, provide all the products that are to be purchased.
- Only the services tickmarked as “I purchase this product/service from a supplier”, will be added.
- Click on save and close.
- If it is ready to be sent to the customer, click on Save and close.
Step 3: Update the Purchase Order Status
The purchase order has an open status when it is created. Once the purchase order is accepted by the supplier, you can add this to the expense or bill. By doing so, the transactions are made official into the bank account. Follow these steps:
- In quickbooks, go to the New icon.
- Select the option from Expense, cheque or bill.
- Choose the seller from the payee drop down, you will see a window of open purchase orders.
- Add the correct purchase order and you will see the item details.
- If it is to be billed for a specific item, then you need to choose the option of billable checkbox.
- Add the customer in the customer column, whom you want to bill.
- Click Save and close.
Step 4: View your Purchase Orders
Go to the reports menu in the QuickBooks.
Search for the various reports in the account:
- Open the purchase order list and detail report.
- Purchase by product/service detail report.
- Purchases by seller detail report.
You can run these reports in your account.
Why are Purchase Orders created in QuickBooks online?
Purchase orders help in automatic sync between two different systems. These are the non-posting transactions that do not impact your financial and accounting information.It allws you to track the process of payment to the supplier. From the option of ‘manage your inventory’, you can also check the purchase order report.
Here we have explained all the steps in detail for you to create a purchase order in QuickBooks. If you are facing any issues while creating or processing the purchase order, feel free to connect with QBS Solved support, dial +1(888) 910 1619. . Our team of experts will assist you further.