Purchase Orders (Auto Numbering)

Managing your transaction numbers in QuickBooks Online (QBO) is easy with Custom transaction numbers, Lisa. I’ll be more than happy to discuss this in detail so we can align your PO with your preferred numbering system.

When you enable the Custom transaction numbers feature, you have full control over the numbering of your Purchase Orders (PO).

While QuickBooks displays a pre-filled number when you create a PO, you can click on that number field and overwrite it with your desired custom number.

After you set your custom number, QuickBooks will remember the sequence for future POs, incrementing based on the initial number you provided.

Furthermore, you can learn how to add an accepted purchase order to a transaction for your vendor in QBO.

You can also check out this article for more insights about recording, editing, and deleting expenses: Enter and manage expenses in QuickBooks Online.

Our team encourages you to visit anytime or comment below if you require assistance with purchase orders and bills inside QuickBooks. We're also available 24/7 if you have other questions about the program. Keep safe.

Thanks for the info....

So if the PO has sales tax on it, and I want to add that as a cost of goods sold/ charge it to the project, I assume I will have to have two separate sales tax payables (one in liabilities - one in COGs)?

Yes, Lisa, you can create two separate sales tax payable accounts for Purchase Orders (PO).

To treat sales tax on a Purchase Order (PO) as a cost of goods sold, you can create a separate account for Sales Tax Payable under Liabilities. Then, you'll have to record the sales tax amount in the sales tax payable account. Following that, record the cost of goods sold separately under the appropriate account for the project.

Moreover, please note that the purchase order is a non-posting transaction, so it will not have any effect on your books. It will only affect you once you've converted it to a bill. It's also best to consult your accountant for accurate information and to confirm the appropriate Detail Type and Account Type to select when creating an account in the Chart of Accounts (COA).

Here's how to create an account in COA:

1. Go to the Gear Icon or Settings and select Chart of Accounts.
2. Click the New option and enter the account name and number.
3. Consult your accountant on what Account Type and Detail Type you should choose when creating an account.
4. Enter a description and verify the account.
5. Once done, click Save.

To learn more about the chart of accounts, check this article: Learn about the COA.

For future reference, you can check this article to learn how to create subaccounts in your chart of accounts: Create subaccounts in your chart of accounts in QBO.

If you have any concerns about managing sales tax in PO, please tag me in the comment section, Lisa. I'll assist you in any way possible.

Moreover, please note that the purchase order is a non-posting transaction, so it will not have any effect on your books. It will only affect you once you've converted it to a bill. <~~ I am trying to add a PO number in QB that has already been paid. If I create a bill to 'pay', it duplicates the payment that has already been made. I want to close it out and show how much of it is received, but it doesn't look like I am able to do that without creating a bill. Is there a way to close the PO - show all received - and tie it to the manual check that came through the bank account? Thx!

Handling a purchase order (PO) in QuickBooks Online (QBO) without duplicating the payment is easy, Lisa. Let me discuss this in detail.

You can close a PO by linking it to a check and entering the PO number in the memo field.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Go to the + New button, then select Check.
3. Choose the same Vendor from the PO that you made so that it will linked to your check.
4. In the memo field put the Purchase Order number.
5. Once done, click on Save and close.

Additionally, you can determine which PO is associated with a check by opening it and clicking the PO link located just above the Payee field. Once the PO is linked and the full amount has been received, the PO will be automatically closed.

Furthermore, you can also check out this article for more insights about recording, editing, and deleting expenses: Enter and manage expenses in QuickBooks Online.

QuickBooks team encourages you to visit anytime or comment below if you need assistance with purchase orders and bills in QuickBooks. We are also available 24/7 for any other questions about the program. Stay safe.

What is the best way to address overpayment of a purchase order that has already been paid?

Example: You opened a PO for $200, but the invoice ended up being $300.

Thanks!

Handling overpayments will depend on your agreement with your vendor, Lisa. I'll be pleased to discuss relevant options you can consider to achieve your goal.

Since the bill you paid was higher than the amount on your purchase order, you can add the overpayment as a vendor credit or refund in QuickBooks Online. This credit can be used to pay future bills from the same vendor.

If your vendor agrees to give you a credit, here's how to enter a vendor credit.

1. Click on the +New button, then choose Vendor credit.
2. Select the vendor in the Vendor dropdown.
3. Pick the Category from the Category details section or an Item from the Item details section.
4. Enter the amount of the overpayment.
5. Hit Save and Close.

On the other hand, if your vendor decides to give you a refund, you'll want to refer to this article for the detailed process: Enter vendor credits and refunds in QuickBooks Online.

Moreover, when you need to review the amount you have paid to your vendor in one place, you can run the Expenses by Vendor Summary report. You may customize it to display the specific information you need.

We're just around to cover all concerns regarding handling vendor overpayment in QuickBooks Online. Please add your queries to this thread by clicking the Reply button below.