How to use Category section in a PO?

Good question, pattie-madjidi.

The Category Details on the Purchase Order (PO) is where you select an account from the chart of accounts to categorize expense type (or non-expense type). One must at least enter any category or item to record purchase and save the transaction.

Here's how to enter Category details on PO:

1. Go to the +New icon.
2. Under Vendor, select Purchase Order.
3. Select the Gear icon.
4. Click Add your own field.
5. Enter Category details, Item Details, and Customer Information and the name of your custom fields.
6. Select a category and item for your purchase order.
   
7. Click Save and close.

Feel free to scan through this article about how to use Purchase Order in QBO: How to Use Purchase Order?

I'm also including this article that'll guide how you can copy your purchase order to a vendor transaction: Apply a Purchase Order to a Vendor Transaction.

Let me know if you have other questions while working with purchase orders. I'm here to further assist. Have a lovely day ahead.

Hi, pattie-madjidi.

Hope you’re doing great. I wanted to see how everything is going about using the category section in a PO. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

tagging on to this.

If I am creating a PO to issue to our product manufacturer - I want to record the category as cost of goods sold  - is that the right selection? And also can I leave the amount as $0 on category?  I have to itemize the  products on the details section and it adds both sections as one total! 
Hope you can help soon! Thanks

Hi there, @Raquel12345.

Let me share some details about the COGS account and how it is used.

When you sell inventory items, it affects the COGS account. Whereas, when you have items on a PO, that's enough to increase the quantity on hand by the number of specific items received.

I'd also recommend consulting an accountant for professional advice about the right categories you can select in posting a PO transaction.

You can spot the articles shared by my peer, Charies_M, about using a Purchase Order.

I've added articles for more insights about accounting terms in QuickBooks and tracking inventory manually:

• Learn common accounting terms
• Can I track inventory manually in QuickBooks Online?

Feel free to jump in and comment here if you have additional questions. I'm more than willing to help. Stay safe and healthy!