How To Enable And Use Purchase Orders In QuickBooks Online
- Last Updated on: June 2nd, 2018
- Posted by: QB
- Category: QuickBooks Online
What do you think about purchase orders (PO) in QuickBooks online? Do you know how to use and track it? Here in this article, we will explain everything about PO and also how to enable it?
- What is purchase order?
- How can you Enable the PO feature in QuickBooks Online
- Enter a purchase order
- For a vendor or supplier apply for a PO.
- How can you Receive or pay part of a PO?
- And also how to Run PO reports
Define: What is purchase order?
A purchase order (PO) Defines all details of the purchase such as quantities and prices. And also explain your idea to purchase products or services from them. It is a document you can send to a vendor/supplier. When Vendors or suppliers accept it, then it means that you have an agreement with them to receive those products or services under the terms given.
How To Enable The Purchase Order Feature in QuickBooks Online
You can find the Purchase orders in QuickBooks Online Plus and in older QB Online Edition products (with optional Sales package enabled).
To find out that if the feature is enabled in your company, from the Choose the Plus icon (+) and the Purchase Order. Click on the more option at the bottom if you are unable to see it. If you can see the PO but get the message when you select it “ We’re sorry! Purchase Orders is turned off”, then you have to enable the feature. To enable purchase order, Select the setting link or follow these given steps:
- From the top, choose the Gear icon > Account and Settings (or Company Settings).
- Choose Expenses from the left sidebar.
- After that Select the pencil icon from the right to PO.
- Mark the Use Purchase Orders box.
- Enter titles for up to 3 custom fields. (It’s optional)
- You can enter a Default Message on PO. (It’s optional)
- Select Save then Done.
NOTE: In the current format, there is no way to customize purchase orders ahead of different content, layout and style options. This format of the Purchase Order comes from the Master Sales Form and whichever template you have set as default.
Enter a purchase order
- Choose the Plus icon (+) appears at the top, then select Purchase Order.
- Now select/Add a vendor or supplier from the Vendor/Supplier drop-down.
- Then Choose the ship to the drop-down and select the customer If you are shipping a product directly to a customer.
- Fill the custom field as per requirement If you’re using them.
- Now Enter the purchases from the section of Account and/or Item details section. Remember there is only the products or services marked I purchase this product/ service from a vendor/supplier will appear in the Item detail section.
- To complete the entry you have to choose to Save and Send, Save and Close or Save.
- When you enter PO the status is automatically set to open. It will appear in the left corner. And when all quantities and/or amounts on the purchase order are confirmed to be received and/or paid across all linked transactions, this status will be automatically changed to Closed. If you want to change the overall status of an existing PO or only its individual lines, you can edit it at any time.
- You can choose a customer for each line while adding a PO. You have to mark the billable box after adding the PO to a vendor or a supplier transaction to make these items billable to the customer(s).
Apply a purchase order to a transaction
- You ‘ll have to record a bill or a check/cheque or expense. Such as cash transaction or credit card that is showing what you paid or still owed when a PO is accepted and completed.
- You can see the PO on the right-hand side of the screen if you select a vendor/supplier on any of these transaction types. Now you have to select Add on the PO display to add a PO to the transaction. After that, it will be added to the first available line in the Item details or Account details section below.
- If all quantities and/or amounts on the purchase order are accounted for across all of its linked transactions the PO is automatically closed.
- If you add a PO to a transaction by mistake, then select the Trash can icon on the far of the line item to remove it. Don’t worry the PO will stay open if it is done before saving the transaction. However, the PO will remain close and must be manually changed back to Open if you save the PO to the transaction and then have to edit the transaction by deleting the PO.
- The date of the transaction has to be on or after the date on the Purchase Order while linking a bill, check/cheque, or expense to a PO.
- If you want to add negative line item from a PO to a bill, check/cheque or expenses then you need to note that, currently you cannot add negative line items. If you’d like to record a potential refund, the best option is to record a vendor/supplier credit.
How can you Receive or pay part of the Purchase Orders?
You are able to add part of a purchase order to a transaction. And also link multiple transactions to a single PO. if you are receiving a partial amount on a PO or making a partial payment.
- From the top Click on the Plus icon (+) then Bill, Check/Cheque or Expense.
- After that choose or add a vendor/supplier from the drop-down. Now you can see a purchase order section will appear on the right-hand side of the screen.
- Click to Add on the purchase order display to add a PO to the transaction. After that, you can see all the details from the purchase order on the first available line in the Item details or Account details section.
- To reflect the portion that you would like to record as partially receive or paid, you have to Edit the quantity or amount for each line.
Note that you can link multiple transactions to a single purchase order. If all quantities and/or amounts on the purchase order are accounted for across all of its linked transactions, QuickBooks automatically closes a purchase order. You can manually close the purchase order by changing its status or by manually closing individual lines on it.
Run purchase order reports
There is a number of reports in QuickBooks that will help you with your purchase orders. To view these reports:
- From the left, Choose Reports.
- Choose All Reports at the top then Review Expenses and Purchases.
- In the Review Expenses and Purchases reports section, you will find the Open Purchase Order List. Open Purchase Order Detail and other Purchase Detail report. Select to run or customize the report.
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