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If you want to order inventory from your vendors and make sure you get what you order, a purchase order is the form for you. You create a purchase order in QuickBooks, which spells out which products you ordered, how many of each one and the price. Then when you receive inventory from the vendor, you can compare what you got to what you ordered. Purchase orders are called non-posting transactions because they don't move any money around in your account. Money gets involved only when you enter a bill or record receiving inventory in your company file.
The Purchase Orders icon on the homepage and all inventory related commands are visible only if you turn on inventory. If inventory isn't turned on, on the Edit menu click Preferences. Click Items & Inventory. Click the Company Preferences tab, because inventory applies to everyone who works in the company file. Turn on the Inventory and purchase orders are active checkbox and then click OK. To create a purchase order on the homepage, click Purchase Orders.
In the Create Purchase Orders window, QuickBooks fills in the date with today's date, which is just what you want. It'll also increments the Purchase Order Number from the last when you created. In the Vendor dropdown list, choose the vendor you're ordering products from. QuickBooks fills in the Vendor box with the vendor's name and the address if you've added one to the vendor record. The program also fills in the Ship To box with your company's address. If you want to ship the products to a different address, choose an alternate address in the Ship To dropdown list.
For example, if you purchased the product specifically for a customer, you can choose the customer's address. In the first Item cell, choose the first product you want to order. QuickBooks fills in the Description from the item's information. In the Quantity cell, type how many you want to order. QuickBooks fills in the rate from the item record and calculates the total Amount for that product. If you're ordering the product specifically for a customer job, choose that in the Customer dropdown list.
Fill in additional lines with more products if you want. If you want QuickBooks to add the purchase order to a print queue, turn on the To be printed checkbox. If you going all electronic, you can turn on the To be e-mailed checkbox instead to e-mail the form to your vendor. You have to add the vendor's e-mail address to the vendor's record as described in the chapters Setting Up Customers, Jobs and Vendors. When you're done, click Save & New to save the purchase order and create another one, or to save the purchase order and close the dialog box, click Save & Close.
When you receive your order from the Vendor and enter the bill you receive, you can select the PO to fill in the bill field. You'll learn how to use the PO on a bill later in this chapter.
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