Lesson 8-5: Create A Purchase Order – This free QuickBooks tutorial will show you how to create a Purchase Order. A Purchase Order is a document that most companies use to order inventory items. The buyer will create a purchase order and send it to the vendor. The vendor will review the purchase order and if the vendor has the items on hand, the items will be shipped to the buyer as soon as possible. The benefit to using a purchase order is that it helps a company keep track of the order that was placed with the vendor. If there were any discrepancies in quantity or type of inventory ordered, the buyer and seller can refer to the purchase order to verify the original order that was placed. A purchase order does not affect any financial statement because it is a non-posting document. You can think of a purchase order as a “reminder” of the order that was placed with your company’s vendor. To create a purchase order, follow the steps in the video below:
Here is a summary of the steps that were performed in the video:
1. Click the Purchase Order icon on the QuickBooks homepage, or click the Vendors menu, then click Create Purchase Orders.
2. Select the vendor for which you are creating the purchase order.
3. If you want the order to be drop shipped to one of your customers, select that customer in the Drop Ship To field.
4. Choose the current date for the purchase order.
5. Now that you have created inventory items, choose the items that you want to purchase from the vendor using the Item column.
6. If you entered in a description for the item when you created it, then that description will appear in the description field, or you can manually type in a description.
7. Enter the quantity of the item in the quantity field.
8. If you entered in a Cost when you created the item, that cost will automatically appear in the Rate field. If you didn’t enter a cost for the item, then you can enter it now.
9. If you are placing the entire order for a particular customer, choose the customer from the drop-down menu in the customer column.
10. When you have entered in all of the information, click OK at the bottom right.