Thanks for getting in touch with the Community, larrysrsp
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Purchase orders are used for when you want to notify vendors of your intent to make purchases. They can be created, then emailed directly to vendors when you're ready to buy more products. You can enter specific items you want to buy and their quantities on them.
Once a vendor accepts a purchase order and agrees to your terms, you can add it to an expense or bill transaction.
When it comes to bills, you'll create them if you plan to pay for an expense in the future. If you've already paid for an expense, it can be entered as an expense.
I've also included a couple detailed resources about working with purchase orders and bills which may come in handy moving forward:
If there's any additional questions, I'm just a post away. Have an awesome Monday!