How to Create a Purchase Order in Quickbooks
As your business grows, you may want to use purchase orders. While there’s no rule stating that purchase orders must be used, doing so offers a few key benefits, the most important being a paper trail. Purchase orders are essentially permanent records of the purchased items. So if you’re buying a bulk supply of a product or item that is necessary for your business, using a purchase order will create a receipt that can used for tax purposes.
Quickbooks allows users to create purchase orders in just a few simple steps. First and foremost, you’ll need to access Vendors > Creator Purchase Orders, at which point a new window will open. Next, select the vendor from whom you are purchasing the item or items by clicking the drop-down menu. This will list all vendors in your vendor list; click the one from whom are making the purchase.
You’ll also see a drop-down menu for “Ship To,” which as the name suggests is used to specify where you would like the order shipped. This menu contains a list of your customers, vendors and employees. Go ahead and choose the address where you would like your order shipped.
You can now confirm the purchase order date. Quickbooks will choose the current system date as the default order date. You can change this, however, by entering a new date in the field.
After confirming and/or setting the purchase order date, you’ll need to confirm the purchase order number. The purchase order number, also known as “P.O.” is a unique identifier that’s tied to the specific order. The accounting software works by assigning sequential numbers to purchase orders, placing the next number in the respective P.O. number field. Double-check this purchase number to ensure it is correct. If it is not correct, update it with the right purchase order.
Next, describe the items that you are ordering in the “Create Purchases Orders” window. This includes the item, description, quantity, rate and customer. When you are finished, print a copy of the purchase order so you’ll have an actual paper document. You should also save the purchase order by clicking the “Save & Close button.”