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What does a purchase order (PO) do?

You use a purchase order to tell a vendor that you want to order goods or services.

Purchase orders help you keep track of what you have ordered and what you have already received. When you have received everything on the purchase order, QuickBooks marks the purchase order "Received in full."

When you receive the goods or services, QuickBooks uses information on the purchase order to enter a bill, check, or credit card charge for the same vendor.

When you use purchase orders to order inventory items, you can see not only how many items are in stock but how many are on order and when they're due to be received.

You can also use purchase orders to order services from a contractor, office supplies, a new asset for your company, or other items that are not set up as inventory in QuickBooks.

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