The Complete Process to Create a Purchase Order in QuickBooks

purchase order in quickbooks

A purchase order is a kind of document that the buyer sends to the supplier for ordering the items. These function as internal control documents preventing employees from getting and paying for items the company has yet to purchase. Also known as POs, a purchase order in QuickBooks is issued without paying for the specific item during the issue.

Business owners must know how to create purchase orders to track the items they order and know the expenses that would be coming up. In this article, you will find how to create purchase orders in both QuickBooks Online and Desktop.

How to Create Purchase Orders in QuickBooks Online?

This process begins with enabling the purchase order feature. Here are the instructions for the entire process.

Enable the purchase order functionality

  • Access the settings in QuickBooks.
  • After that, tap the ‘Account and Settings’ option.
  • Now, head to the ‘Expenses’ tab.
  • Navigate to the ‘Purchase order’ section.
  • Here, tap the ‘Edit’ icon.
  • Now enable the ‘Use purchase orders’ option.
  • Input three custom fields and a default message if you want for your suppliers.
  • Tap ‘Save’ followed by ‘Done.’

Also, read : QuickBooks Downloads 

Create the order 

Now you are ready to create a purchase order in QuickBooks.

  • Tap the ‘New +’ icon to make the order.
  • To make a new order, select the ‘Purchase order’ option.
  • From the ‘Supplier’ drop-down menu, choose the supplier with whom you desire to make this order.
  • Now input the correct mailing address.
  • Tap the drop-down arrow of ‘Ship to.’
  • Ensure that the shipping address is correct.
  • In the ‘Purchase order date’ field, fill out the purchase order date.
  • Access the settings on the purchase order form.
  • Tap the‘ Choose what you use’ panel to create your custom fields.
  • In the ‘Item details’ section, write the items you wish to buy.
  • You can only input the services or items you’ve checked as ‘I purchased…supplier.’
  • When you are ready, tap ‘Save and close.’
  • Tap the save and close drop-down arrow when you want to dispatch this order to your customer.
  • Now tap ‘Save and send.’

Updating the Order Status After You Create a Purchase Order in QuickBooks 

After you’ve made the order, its status is open. You need to update its status and add it to the expense or bill.

  • Hit the ‘New +’ icon in QB.
  • Choose any one option: ‘Check’, ‘Bill’, ‘Expense.’
  • In the ‘Payee’ drop-down, pick a supplier.
  • The window of ‘Open Purchase Orders’ will appear.
  • Tap the ‘Add’ button to add your purchase order.
  • Now, these items will show in the ‘Item Details’ section.
  • Suppose you desire to bill a customer. In that case, you will choose the ‘Billable’ checkbox.
  • Now, add your customer in the ‘Customer’ column.
  • Tap ‘Save and Close.’

How to Create a Purchase Order in QuickBooks Desktop

You can make a purchase order in QuickBooks Desktop for Windows and Mac. Follow the steps for the operating system you have.

Steps to Create Purchase Order in QuickBooks Desktop for Windows

You first need to enable the purchase orders and then add the items you want to order.

  • Navigate to ‘Edit’ and pick the ‘Preferences’ option. Choose the ‘Items & Inventory’ option.
  • Now, go to the ‘Company Preferences’ tab.
  • Ensure that the checkboxes of Inventory and Purchase Orders are active.
  • Choose ‘OK.’
  • Head to ‘Vendors.’
  • Opt for ‘Create Purchase Orders.’
  • In the drop-down of ‘Vendor’ select a vendor for which you have to create purchase order in QuickBooks Desktop.
  • Complete the remaining fields.
  • Finally, select ‘Save and close.’

Also, read : How To Add Inventory In Quickbooks

Steps to Create Purchase Order in QuickBooks Desktop for Mac

Like Windows, quickbooks for mac download users can also create a purchase order in QuickBooks by following a certain set of instructions.

  • Head to ‘Vendors’ and choose ‘Create Purchase Orders.’
  • Choose ‘Create purchase order…
  • Give the relevant data as per the fields and choose ‘Save.’

Make a purchase order from an estimate 

  • Choose ‘Create purchase order’ from the estimate’s window.
  • If the products are from a single vendor, choose ‘For all allowed items on the estimate.’
  • In case they are from numerous vendors, choose ‘For selected items…
  • Then choose the items you need on your order.
  • Tap ‘OK.’
  • Input the appropriate fields and tap ‘Save.’

Record the received items

You can record the products you’ve received from the purchase order in QuickBooks Desktop.

  • If you receive the bill at a later time, make an item receipt.
  • In case you got the bill at the time of receiving the goods, make a bill.
  • If you made the payment soon after getting the items, make a credit card charge or check.

Frequently Asked Questions

What items are there in a purchase order?

You must create a purchase order in QuickBooks with clear information and greater details. Ensure to include the following in a purchase order.

  • Purchase order number, name, contact data, and billing address of the supplier.
  • The product that is being bought.
  • Contact data, name, and shipping address of the buyer.
  • Order quantity
  • Price per unit
  • Sales tax
  • Line total
  • Date of delivery
  • Shipping method
  • Shipping terms
  • Payment terms

How to view open purchase orders in QuickBooks Online?

To view the open purchase order in QuickBooks, use the ‘Reports’ menu option. Just click on it and you can look at several reports. It includes an open purchase order list, order detail, purchases by product detail, and those by supplier detail. Simply run these reports in your account.

How to monitor open purchase orders in QuickBooks Desktop for Mac?

To track your purchase orders, head to the ‘Lists’ menu. Here, choose ‘Custom & Vendor profiles’ followed by ‘Purchase orders.’ Now modify the ‘View’ filter to ‘Open purchase orders’ from ‘All purchase orders.’

How is the purchase order in QuickBooks different from QuickBooks bill?

Purchase orders can remain as open vendor orders or be turned into bills. This is till the fulfillment of the purchase order. QuickBooks will turn a purchase order into an invoice and you can process the payment through QB on any pending bill.

Summing up

A purchase order in QuickBooks makes it effortless to track orders quickly. It also ensures clear communication between you and the supplier. You can make and view it on QB Online and Desktop easily. If you need any additional help, feel free to contact a QuickBooks technical support service.

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