How to Create a Purchase Order in QuickBooks?

Managing purchases effectively is crucial for any business. A purchase order (PO) is a vital tool that helps streamline the procurement process, ensuring clarity and accuracy in ordering goods or services. QuickBooks provides an efficient way to create and manage purchase orders, whether you are using QuickBooks Online or QuickBooks Desktop. In this blog, we will guide you through the steps to create purchase order in QuickBooks and highlight its benefits.

What is a Purchase Order?

A purchase order is a formal document issued by a buyer to a supplier, indicating the types, quantities, and agreed prices for products or services. It serves as a legally binding contract once accepted by the vendor. Purchase orders help maintain accurate records, facilitate inventory management, and improve communication between buyers and suppliers.

Why Use Purchase Orders?

Improved Organization: Purchase orders help businesses keep track of what has been ordered, reducing the chances of errors and miscommunication.

• Enhanced Inventory Management: By tracking purchase orders, businesses can better manage their inventory levels, ensuring they have the right amount of stock on hand.
• Financial Control: Purchase orders allow businesses to monitor their spending and manage budgets effectively by providing a clear record of outstanding purchases.
• Stronger Vendor Relationships: Using purchase orders promotes professionalism and transparency in dealings with suppliers, leading to improved vendor relationships.

How to Create a Purchase Order in QuickBooks?

Creating a purchase order in QuickBooks is a simple process. Follow the steps below for both QuickBooks Online and QuickBooks Desktop.

For QuickBooks Online Users

Log In to QuickBooks Online: Access your QuickBooks Online account using your credentials.

Navigate to the Purchase Order Section: Click on the “+ New” button on the left-hand sidebar. From the dropdown menu, select “Purchase Order.”

Fill Out the Purchase Order Form:

• Select Vendor: Choose the vendor you are purchasing from. If the vendor is not listed, you can add a new vendor.
• Order Date and PO Number: Enter the date of the order and a unique purchase order number for reference.
• Item Details: Add the products or services you are ordering, including the quantity and price. You can also specify any applicable taxes.
• Review and Save: Once you have entered all the required information, review the purchase order for accuracy. Click “Save and Close” or “Save and Send” if you want to email the PO directly to the vendor.

For QuickBooks Desktop Users

Open QuickBooks Desktop: Launch your QuickBooks Desktop application and log in.

Access the Purchase Order Feature: From the top menu, go to the “Vendors” menu and select “Create Purchase Orders.”

Complete the Purchase Order Form:

• Select Vendor: Choose the vendor from the list. If necessary, you can create a new vendor directly from this screen.
• Order Information: Enter the order date and assign a unique PO number.
• Add Items: Enter the details of the items you are ordering, including quantities and prices.
• Save and Send: After reviewing the purchase order details, click “Save & Close” or “Save & New” if you want to create another order. You can also print or email the purchase order from this window.
• Managing Your Purchase Orders
• After creating purchase orders, it's important to keep track of them effectively:
• Track Order Status: You can view all your purchase orders under the “Reports” or “Expenses” section in QuickBooks. This allows you to monitor what has been ordered and what is still outstanding.
• Update Purchase Orders: If there are any changes to an order, you can edit the purchase order in QuickBooks to reflect the updated information.
• Receive Items: When you receive the items, you can easily match them to the purchase order, ensuring that you have received everything as expected.

Conclusion!!

Creating a purchase order in QuickBooks is a vital step for businesses looking to streamline their purchasing processes. By following the steps outlined in this guide, you can easily create, track, and manage purchase orders, enhancing your inventory management and vendor relationships. Start utilizing purchase orders in QuickBooks today to ensure organized financial records and a more efficient procurement process!