Hi there, @Kathy_Griswold. Let me share some insights about tracking inventory in QuickBooks Online.
A purchase order is a non-posting document that merely serves as a memo, in which you tell the vendor what it is that you wish to purchase. After he accepts it and sends the products, you can record it as a bill or expense.
- A bill is used to record the goods or services you received, which you are obligated to pay for later.
- An expense or check is used to record the goods or services you received and paid on the spot.
You can easily add the purchase order as a line item. This closes the purchase order and connects it to the bill or expense. You can also add just a part of it.
Here's how:
- Select + New.
- Select Expense, Check, or Bill.
- From the Payee dropdown, select the vendor. This opens a window with their open purchase orders.
- Choose Add for the correct purchase order. This adds the items from the purchase order. They appear in the Item details section. Adjust the quantity or amount for each line item to reflect the portion you received or plan to pay for.
- If you plan to bill a customer for a specific item, select the Billable checkbox. Then, add the customer you plan to bill in the Customer column.
- Select Save and close.
Doing these steps will increase you inventory. After that, you can record your bill payments.
It would my pleasure to see you again should you need more help tracking your items. Just comment down below. Have a wonderful day.
