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userken
October 6, 2020
Question

I am recording bills already paid thru bank transfer. Should I create purchase order first? Sales were already in quickbooks. Thank you.

  • October 6, 2020
  • 1 reply
  • 3 views
No text available

1 reply

Pabz_L
Pabz_L
October 7, 2020

Hello there, @userken.

 

Let me share some insights about Purchase order in QuickBooks Online.

 

Purchase Order is a non-posting document that serves as a memo you send to your supplier to state your intent to buy products or services. 

 

On the other hand, Bill is payable, which is a liability of your business. It is the money you owe but has not yet paid. Since you’ve already recorded a bill, there is no need to create a purchase order because it might cause duplicate transactions in QuickBooks.

 

Here's an article that will help you understand the difference between bills, cheques, expenses, and to know when to enter bills in QuickBooks Online: Difference between bill, check, and expense.

 

Please let me know if you have any additional questions. Keep safe.

    U
    userkenAuthor
    October 7, 2020

    Thank you  @Pabz_L 

    However, I haven't created yet the bills.

    AlcaeusF
    AlcaeusF
    Level 14
    October 7, 2020

    Hello @userken,

     

    Thanks for providing additional details here in the Community. Let me share what I know about recording transactions in QuickBooks Online.

     

    The way you enter Accounts Payable (AP) transactions in the system will depend on how it happens in the actual. A purchase order (PO) is a contract to purchase items from a specific vendor.

     

    If you handed it over and a vendor accepts, I recommend you create the PO first in QuickBooks. This way, you'll be able to apply it to your future transactions like an expense, check, or bill.

     

    However, if there is no PO involve, you can directly enter bills and make payments.

     

    You can also check the articles for more details about purchase orders, like how to create and apply them to vendor transactions in QuickBooks:

     

    Fill me in if you have additional questions about using QBO. I'm always here to help. Take care always.

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