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2020-03-31 11:12:52expensesEnglishhttps://quickbooks.intuit.com/in/resources/expenses/how-to-create-a-purchase-order-in-quickbooks-online/How to Create a Purchase Order in QuickBooks Online?

How to Create a Purchase Order in QuickBooks Online?

3 min read

What is a Purchase Order (PO)?

Purchase order (PO) is an official commercial document sent by the buyer to seller stating the product/service name, brand name / SKU, quantity, specification, the price per product/service/brand / SKU, purchase order date, delivery location, address, delivery timelines and payment terms etc.

The advantage of a purchase order is:

  • Structured document to mention all the information needed to purchase a product by a buyer to seller
  • Helps in accounting (in improving accuracy) and budgeting as funds need to be planned and kept available before a PO can be raised
  • Reduces the risk for the seller as he/she is assured on payment once the service/product has been delivered within specified delivery timelines

Creating a Purchase Order in QuickBooks is very easy and straightforward, here’s how:

  • Click +New from the top left navigation frame once you login to QuickBooks Online. And then select “Purchase Order” under Suppliers. (see below screenshot)

create po

  • If you get a message “We’re sorry, your purchase order is turned off, turn on in ’Settings’”, please click on Settings links as shown below and do the following:

quickbooks po

Select the “pencil” icon/edit icon at the extreme right (refer screenshot below) and turned on the “Purchase Order” setting by doing the following:

quickboks po

  • Tick the “use purchase order” which will let you enter purchase orders from the “(+)” button at the top of the QuickBooks page.
  • “Custom transaction numbers” Lets you use your own numbering system. If left blank, purchase order numbers are automatically assigned by QuickBooks. Keep it blank for now. (see below screenshot)

PO IN QUICKBOOKS

Click save and then click “OK” in the below screenshot.

QB po

  • Also, set up your custom message while sending the PO to the seller/supplier. (see screenshot below)

qb po

After doing the above procedures, you will see PO feature in settings has been turned “On” along with “custom message” to supplier. Click “Done” and you get a message as “settings saved”.

Create a Purchase Order (PO) in QuickBooks

Now that the purchase order setting is turned on, do the following to create your first purchase order:

  • Click +New from the top left navigation frame once you login to QuickBooks Online. And then select “Purchase Order” under Suppliers. PO window opens. Click “Add New” to add the supplier as there is no supplier added. (see screenshot below)

qb po

  • Provide supplier details- add a name, click “+ Details” to add other details e.g. company name, contact person name, email, mobile, phone, address, website, account no., PAN, GSTIN (if GST registered – regular/composite / SEZ, etc.), etc. Click Save.  (see the below two screenshots)

qb PO

QB PO

  • If you don’t want to add all details now but the name, click “Maybe later”.
  • Once you fill all the supplier details and save, you come back to the Purchase order form, it will look like as follows with fields Email, mailing address supplier name auto-filled up.

If you are shipping a product directly to a customer, select the ‘Ship to’ drop-down menu and choose the customer (Sara selected as a customer). Change the purchase order date which has been auto-filled as of today’s date. Select “Ship via” information.

 

QB PO

  • Now add the product and category details to mention the product, tax details. Click Save. (see below screenshot)

qb po

  • Add your message to suppliers and attachment if you have.
  • To take a print out of this PO, click Print from the bottom most menu bar. To make this as a recurring PO, select ‘Make recurring’.
  • Finally click the drop down for “Save and Close” and select ‘Save and Send’. If you would like to add another PO, select “Save and new”

(for bullet 6 to 8, refer below screenshot)

  • Send email window appears with the customized message as we had selected while turning on the settings for PO and its custom message to suppliers. (see screenshot below)

  • Click “Send and close”. You will get a notification mentioning ‘email sent to manju@venkateshwara.com successfully’.

 

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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