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Purchase orders and invoices for Personnel

QuickBooks Online purchase order tutorial hey there this is Matt Holquist with the QuickBooks University and I'm going to walk you through how to do a purchase order in QuickBooks Online okay so here we are in a sample company file we are at the home screen a purchase order is going to be used it essentially is a legally binding document when you send it to your vendor of your intent to purchase something okay from one of your vendors now typically you're not going to see them for services and things like that you're going to see them for inventory or other items that you might be reselling to a customer all right so what you're going to do is go up to the new button up here and you're going to see under vendors you've got purchase order okay so it brings up the purchase order screen very straightforward which you know QuickBooks is pretty good about just setting up these screens and walking you through them so first let's pick a vendor we're going to say let's see uh we'll say computers by Jenny and you'll see it brings up the email the mailing address now ship to if you are Drop Shipping this directly to a customer you can choose that we are going to assume that we're going to ship it to our office and the sample company Craig's design and Landscaping we've got the date and if you want to put ship via FedEx UPS whatever it is you can add that in here now the important thing to make sure that you get right is down here you've got category details and you have item details category details are just going to be expenses of the company so for example you know the category is basically your chart of accounts and if these uh if this is a purchase order for something maybe equipment rental something like that then you're going to put it under category the description the amount and you can assign it to a customer to be billed now that is not as common as item details item details are going to be items that you order that are your inventory or things that you resell or you buy for a customer Etc so we're going to use that example so let's say that we are buying rock fountains from computers by Jenny kind of strange but for this example it'll work so we're going to buy 10 of these fountains so let me type in 10 and so it's going to be a total of 1 250 dollars now what's important to remember is a purchase order is a non-posting transaction what that means is it does not post to your accounting records it's not going to show up in your profit and loss it's not going to show up in your balance sheet you can look it up and I'm going to show you how to look up your open purchase orders but it does not affect your accounting records until you actually receive the items and receive a bill so it is a non-posting transaction now you'll see up here it says open you can change this to open or closed when it is a purchase order that is still open you have not received the goods it's still you know going to be shipped it's an open purchase order if you have to cancel the purchase order then you would go in and change it to closed and it will essentially take it out of the system so we're going to keep this as open we are going to save and close now what happens from here you take you send this purchase order to your vendor better they acknowledge it and your order is being processed so what happens from there and how do you know what is outstanding all right so what you want to do is you want to go down to expenses and over to vendors and you'll see here that this is going to show you with all the vendors you've got your bills you got paid and you have your three purchase orders so we click on purchase orders up here this blue area and you will see that computers by Jenny is one open purchase order for twelve hundred and fifty dollars well what you can do you can go ahead and create a bill from here or create an expense so let's say that they call you and you pay by credit card then you can just go in and create an expense you don't have to necessarily create a bill and then go in and pay that bill but let's say they send you a bill for the items they ship then you would create a bill but if at any time you want to see your open purchase orders you can go here and you can check that out all right now you also have batch actions over here you can email or make some of these inactive if you check off these check boxes all right you can also go in and view the purchase order by clicking here and if we go over here you can view and edit all right so if you need to go in if this gets canceled you can close this out right here all right so let's X out of here let's assume now that you do just get a bill in the mail and or email so if you just go in your normal course of the day and you go in and you go to Bill to enter a bill and we choose computers by Jenny you're going to see that it shows up over on the right side so you can add this and this is basically converting this purchase order to an invoice at this point at this point this is when it's going to go into your accounting record so if we click add it'll now take it out of open purchase orders and put it as a bill and it's going to automatically enter if you need to change anything on here of course you can so let's say the amount comes in at 1280 we can change this to 1280. all right if this is billable to a customer you can of course click billable and you can also click the customer so from this point we're going to save and close and now we have a bill in the system for the purchase order so we're here in the vendor Center you can see here the purchase order and then it went to a bill okay so those are the basics of the QuickBooks Online purchase orders if you have any questions any comments feel free to leave those below and I'll see in the next video