I want to track vendor contracts (non-inventory) and payments for a project in QBO. Can this be managed using a PO using vendor invoices, or is an upgrade needed?

Hi there, @mary. Welcome to the Community.

In QuickBooks Online (QBO), tracking vendor contracts, non-inventory items, and project-related payments cannot be effectively managed using a Purchase Order (PO).

The project cost will only be affected by the expense categories used when creating a bill or expense transaction. Using non-inventory items for vendor contracts will not reflect in the project costs.

However, they can track its cost when running the Project Profitability report on a cash basis accounting method.

Here's how:

1. Go to Myapps, then Project.
2. Select which project and click Project Reports.
3. Project profitability in the Accounting method column, choose Cash.
   
   
4. Click Run report.

If you have any questions or concerns, please click the Reply button.

I am also trying to track non-inventory items in QBO using PO's and it's a nightmare.  Be careful because the system automatically closes out a partially filled PO's.  So ridiculous. Try this:

1) Create Purchase Order with Vendor "ABC" using Non-Inventory Item for $1,000

2) Go to Bills and Select Vendor "ABC" - QBO automatically brings up the Open Purchase Order

3) Select the Open Purchase Order and QBO automatically loads the correct Item in the Bill and links the PO

4) Change the Amount in the Bill (partial fulfillment) to $750.  

5) QBO automatically closes the PO even though $250 remains outstanding on the PO.

6) I have tried every setting and change and this happens every time.

Please help! This seems like a MAJOR bug - can't believe the system just closes out Open PO's. 

Hello, @BriOz84.

I noticed that you've posted similar concerns twice. My colleague has already responded to your previous message, and you can view her reply by following this link: Partial Fulfillment - QBO Purchase Orders.
 

If you have further questions regarding QuickBooks Online, don’t hesitate to reply to this conversation.