Efficiently managing purchases is crucial for any business, and creating a purchase order (PO) is a vital step in that process. A purchase order serves as a formal agreement between a buyer and a supplier, detailing the goods or services being ordered. QuickBooks offers a seamless way to create and manage purchase orders, whether you’re using QuickBooks Online or QuickBooks Desktop. In this blog, we’ll walk you through how to create purchase order in QuickBooks and highlight its benefits.

What is a Purchase Order?

A purchase order is a document issued by a buyer to a seller, specifying the items, quantities, and agreed-upon prices for products or services. It serves as a legally binding contract once the vendor accepts it. Using purchase orders helps maintain accurate records, improve inventory management, and enhance communication between buyers and suppliers.

Why Use Purchase Orders?

1. Organized Procurement: Purchase orders help businesses keep track of orders and ensure that nothing is overlooked, reducing the likelihood of errors and misunderstandings.

2. Improved Inventory Control: By tracking purchase orders, businesses can manage inventory levels more effectively, ensuring that they have the right amount of stock on hand.

3. Budget Management: Purchase orders provide a clear record of outstanding purchases, allowing businesses to monitor their spending and manage budgets efficiently.

4. Professional Relationships: Utilizing purchase orders fosters professionalism in dealings with suppliers, contributing to stronger vendor relationships.

How to Create a Purchase Order in QuickBooks?

Creating a purchase order in QuickBooks is a straightforward process. Here’s how to do it for both QuickBooks Online and QuickBooks Desktop.

For QuickBooks Online Users

1. Log Into QuickBooks Online: Start by accessing your QuickBooks Online account with your credentials.

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

3. Fill Out the Purchase Order Form:

   • Select Vendor: Choose the vendor from whom you are purchasing. If the vendor is not listed, you can easily add a new vendor.
   • Order Date and PO Number: Enter the date of the order and assign a unique purchase order number for tracking.
   • Item Details: Add the products or services you are ordering, including the quantity and price for each item. You can also specify any applicable taxes.

4. Review and Save: Once you have entered all the necessary information, review the purchase order for accuracy. Click “Save and Close” to finish or “Save and Send” to email the PO directly to the vendor.

For QuickBooks Desktop Users

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

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

3. Complete the Purchase Order Form:

   • Select Vendor: Choose the vendor from your list. If needed, you can create a new vendor directly from this window.
   • Order Information: Enter the order date and assign a unique PO number for reference.
   • Add Items: Enter the details of the items you are ordering, including quantities and prices.

4. 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

Once you have created purchase orders, it’s essential to manage 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 changes to an order, you can easily edit the purchase order in QuickBooks to reflect the updated information.

• Receive Items: When you receive the items from your supplier, you can match them to the purchase order to ensure you received everything as expected.

Conclusion!!

Creating a purchase order in QuickBooks is an important step for businesses looking to streamline their procurement processes. By following the steps outlined in this guide, you can efficiently create, track, and manage purchase orders, enhancing your inventory management and vendor relationships. Start using purchase orders in QuickBooks today to maintain organized financial records and improve your purchasing efficiency!