How to Create a Purchase Order in QuickBooks Online

A purchase order (PO) is a document sent to a supplier requesting goods or services. It sets out the items, quantities, prices and delivery details, and lets you track what you have ordered before it becomes a bill or expense. A PO is non-posting — nothing hits your accounts until the goods are billed.

Step 1 – Open a New Purchase Order

A Create (+) – Click the Create button at the top of the left navigation bar to open the transaction menu.

B Purchase order – Select Purchase order under the Suppliers column.

Figure – Opening a new purchase order

Step 2 – Complete the Purchase Order and Save

A Supplier – Choose the supplier from the drop-down list, or click Add New to create one. The PO status shows OPEN beneath.

B Purchase Order date – The date the order is created.

C Item details – Open this section to add the products or services being ordered.

D Product/Service – Select the item you want to purchase from the list.

E Description – Enter or review the description of the item being ordered.

F Qty – The quantity being ordered.

G Rate – The unit price agreed with the supplier.

H Amount – The line total — quantity multiplied by rate.

I Save and close – Stores the completed purchase order. Use the arrow beside it to Save and send it to the supplier by email.

Figure – Completing the purchase order