Learn how to create purchase orders and send them to vendors.
In QuickBooks Online, you have the tools to run all parts of the sales cycle, including purchasing. You can create and email purchase orders (PO) directly to vendors when you're ready to buy more products. Purchase orders tell vendors your intent to make a purchase.
On purchase orders, you can enter specific items you want to buy and the quantity. When your vendor accepts the purchase order and agrees to the given terms, you can quickly add it to an expense or bill transaction in QuickBooks. This keeps all the transactions connected and your accounts balanced.
Step 1: Turn on the purchase order feature
If you haven't already, turn on the purchase order feature:
- Go to Settings ⚙ and select Account and Settings.
- Select the Expenses tab.
- In the Purchase orders section, select the edit ✎ icon.
- Turn on the Use purchase orders options.
- If you want, enter up to three custom fields and a default message for vendors. These are optional.
- Select Save and then Done.
|Note: Purchase order formats are set. You aren't able to customize them.|
Step 2: Create and send a purchase order
- Select + New.
- Select Purchase Order.
- From the Vendor ▼ dropdown, select the vendor.
- Review the Mailing address.
- If you are shipping the products directly to a customer, select the Ship To ▼ dropdown and then the customer. Check the Shipping address to make sure it's correct.
- Enter the Purchase order date.
- Enter the Shipping via, Sales rep, and custom fields as needed.
- In the Item details section, enter the products you want to purchase. Note: You can only add products or services you marked as "I purchase this product/service from a vendor." Learn more about editing products and services.
- When you're done, select Save and close. Or if you're ready to send it, select the Save and close ▼ dropdown and then Save and send.
If you decide to send the purchase order later, go to the Expenses menu. Find your purchase order and select Send in the Action column.
Step 3: Update the status of a purchase order and add it to a bill
When you create a purchase order, the status is Open. Once your vendor accepts the purchase order, you can add it to an expense or bill to make the transaction official.
Follow these steps to add purchase orders to expenses or bills.QuickBooks automatically changes the status to Closed.
Step 4: See your open purchase orders
- Go to the Reports menu.
- Search for and run a Open Purchase Order List report, Open Purchase Order Detail report, Purchases by Product/Service Detail report, or a Purchases by Vendor Detail report.