This article explains what a Purchase Order is and how you can enable, use and track it in QuickBooks Online.
A purchase order (PO) is a document you can send to a vendor. It states your intent to purchase products or services from them and defines the details of the purchase, such as quantities and prices. If they accept your PO, it means you have an agreement with them to receive those products or services under the terms given.
Purchase orders are available in QuickBooks Online Plus and in older QuickBooks Online Edition products (with optional Sales package enabled).
To check if the feature is enabled in your company, select the Plus icon (+) at the top, then Purchase Order. If you don’t see it, select Show more at the bottom. If you see Purchase Order but you get the message We're sorry! Purchase Orders is turned off when you select it, you'll need to enable the feature by selecting the Settings link or by going through these steps:
NOTE: Formatting of the Purchase Order comes from the Master Sales Form Template, regardless of whichever template you have set as default. Currently, there is no way to customize purchase orders further with different content, layout and style options.
If you are receiving a partial amount on a purchase order, or making a partial payment, you can add part of a purchase order to a transaction, and link multiple transactions to a single purchase order.
You can link multiple transactions to a single purchase order. QuickBooks automatically closes a purchase order when all quantities and/or amounts on the purchase order are accounted for across all of its linked transactions. You can manually close the purchase order by changing its status or by manually closing individual lines on it.
QuickBooks Online has a number of reports that will help you with your purchase orders. To view these reports: