Create a Purchase Order In QuickBooks
A purchase order is a professional document that is used when a buyer sends the supplier the order list or promises to pay for the services a buyer avails of at some point in the near future. There are two purposes of a purchase order:
- Formerly, purchase order is used for placing an order for the list of products. It contains information about the order quantity of each product that a buyer needs to buy, the price you are expecting to buy, time of the delivery, and the method of delivery.
- The purchase order also acts as an internal document that protects your staff from overpaying for the items you didn’t purchase. Also, it will let you know at what price the vendor charges you for the items you have requested.
Reason to Create a Purchase Order In QuickBooks Online
Formerly, businessmen create the purchase order through paper and not with the help of accounting software. Although, purchase order is a professional and informational document that has no effect on the books of accounts.
However, if the purchase department manager prepares the purchase order in QuickBooks, it will be saved on the QuickBooks accounts and the finance department manager in the company can access it. This will prevent the manager from overpaying the vendor for the amount that is fixed by the purchase department manager.
Also Read: Steps to Setting up loans in QuickBooks
Steps To Create a Purchase Order in QuickBooks Online
The following are the detailed steps that help you in creating a purchase order in QuickBooks Online:
- Go to your QuickBooks Online account.
- Move to the dashboard.
- After that, in the upper-left corner, choose the ‘New’ button.
- From the Vendors list, select the ‘Purchase Order’ option.
- Your screen will display a purchase order form window.
- If you want to add some more fields such as delivery date, shipping date, cancel date, etc.
- The purchase order will be displayed in a sequential automatic numbering system, if you want to customize it, go to the ‘Gear’ icon and select ‘Accounts’ and then choose ‘Settings’.
- Go to the ‘Expenses’ option.
- Select the pencil icon.
- Adjust and customize your purchase order settings according to your preferences.
- After that, enter all the details that are required for the purchase order.
Also Read: Intuit Merchant Services Login
Filling out details
- Firstly, from the drop-down menu, select the ‘Vendors’ option.
- Provide your email address if you give order through email.
- In case, you want this order to drop directly to a customer, from the drop-down menu of ‘Ship To’, select the name of the customer.
- Enter the preferred date of the purchase order.
- You will get a confirmation message asking you if the shipping address is correct or not. Re-check it.
- Click on the ‘Yes’ option.
- After that, you are required to enter the order product details.
Enter the order products details in case you don’t use Products and Services in QuickBooks
- In the category drop-down box, go to the ‘Charts of Accounts’ option.
- Enter the description of the products.
- Fill out the amount you are ready to pay.
- Select a customer (if required).
Also Read: Write off an Invoice in QuickBooks
Enter the order product details in case you use Products and Services in QuickBooks
- From the drop-down box, select the ‘Products and Services’ option.
- If you want to add a product or service, go to the ‘Add New’ button located at the top of the menu of drop-down.
- The details of ‘Description’ and ‘Rates’ will automatically fill out if you have entered this data before. You can edit this if you want.
- Fill out the quantity of each product that you required.
- After completing the order product details, you will come to the next option.
- If you want to add a message to your vendor about some specifications on your products, you can add. It is not mandatory, it is an optional field.
- You will also have the option of adding attachment files from your computer.
- After that, check all the details that you have entered in the purchase order.
- Click on the ‘Save’ button.
- The ‘Save’ button is helpful in the situation if you want to re-check your purchase order details.
- You will have three options of ‘Saving’ the details such as ‘Save and New’, ‘Save and Send’, and ‘Save and Close’.
- Send your QuickBooks Online purchase order by clicking on the ‘Save and Send’ option.
- You can also print your purchase order to have a hard copy with you by clicking on the ‘Print’ option located at the center bottom of your screen.
Hopefully, the above-given information is useful for you to get rid of this problem. But if you are still facing any issues with your software and need professional assistance, regarding accounting, bookkeeping & accounting software-related issues then feel free to get in touch with Certified Experts at +1-860-325-4922. The USA-based ProAdvisors will provide all sorts of assistance related to the software 24/7.