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HelenQiu
Level 2

Do I need to fill the category in the purchase order?

When I make a new purchase order, there is category there. Do I need to fill it will it affect the accounting result?

Solved
Best answer September 21, 2021

Best Answers
IntuitAika
Intuit

Do I need to fill the category in the purchase order?

If you've selected an item on the Item details section and it was set up as an inventory item, you don't need to have to select a Category detail like Cost of Goods Sold, Inventory or Inventory asset.Cost of Goods Sold (COGS) accounts are associated with your inventory-enabled Product/Service items and it will be allocated to Inventory asset once you've copy the purchase order to a bill. You can always check the Transaction journal (select More) on a Bill to see the accounts associated on it. 

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6 Comments 6
IntuitSheila
Level 4

Do I need to fill the category in the purchase order?

Hi HelenQiu,

 

Thanks for posting in the Community!

 

That's right. You need to select a category or item details when you create a Purchase Order. Purchase orders are non-posting transactions in QuickBooks Online and do not affect your accounting. You will need to create a Bill or Expense for it to be tracked in your accounting.

 

You can check this article to learn more about how to Create and send purchase orders in QuickBooks Online.

 

Feel free to reply to this thread if you have any other questions. Have a great day!

HelenQiu
Level 2

Do I need to fill the category in the purchase order?

Thanks for your reply. But I don't know which category should I choose. The items I purchase need to be recorded in the inventory. Should I just put the category as inventory? When I create a bill, the items will be in the inventory?

IntuitAika
Intuit

Do I need to fill the category in the purchase order?

Hi HelenQiu,

 

When you create a purchase order or bill in QuickBooks Online, you have an option to select an item details or category details. The Category detail is an account that you select from your chart of accounts; while the Item detail is an item from the products and services that you purchase and sell.

 

If you've purchased an item from a supplier, you'll need to select or enter the purchased item on the Item details section on the purchase order. If the item is not added yet on the list, you can follow these steps: 

 

  1. Go to Gear icon and Products and services.
  2. Select New
  3. Select Inventory, Non-inventory, Service or Bundle
  4. Enter Name of the product or service. Enter details needed.
  5. Select Save and close

Once you've added a product or service on the list, you'll be able to select it on the item details when you create a transaction in QuickBooks Online. 

 

Let us know if you have any other questions. 

HelenQiu
Level 2

Do I need to fill the category in the purchase order?

I already entered the items information and choose them for the purchase order. I just have question about the Category detail. Should I choose cost of goods sold or inventory or inventory asset?

HelenQiu
Level 2

Do I need to fill the category in the purchase order?

Do you mean if I already input the item details, then I don't need to input the category? 

IntuitAika
Intuit

Do I need to fill the category in the purchase order?

If you've selected an item on the Item details section and it was set up as an inventory item, you don't need to have to select a Category detail like Cost of Goods Sold, Inventory or Inventory asset.Cost of Goods Sold (COGS) accounts are associated with your inventory-enabled Product/Service items and it will be allocated to Inventory asset once you've copy the purchase order to a bill. You can always check the Transaction journal (select More) on a Bill to see the accounts associated on it. 

View solution in original post