Sign Purchase Order Made Easy

Sign purchase order

so the standard purchasing workflow so the workflow in which I use to purchase materials or inventory starts with the purchase order so the first step is for me to do a purchase order then after I send my vendor that purchase order my vendor is going to put the product together put it in a box and ship it to me then when they ship it to me the next step to follow is to go from purchase order to receive inventory and then when I receive inventory I have two choices with bill or without bill so I use with bill when the existence of the bill the existence of the Accounts Payable the invoice from my vendor I have I have access to right so if I have already received the invoice from my vendor or have access to seeing what the bills gonna look like um then I'm gonna choose inventory with tilt also if the person receiving the inventory also has access to that information now if the QuickBooks user does not have access to the bill and you don't want that inventory receiver to become an Accounts Payable then when you can choose is without bill so it's just this option so let's say we're gonna do receive venturi with our bill and then the next step is at some point in time I'm gonna enter the build against that inventory so that I can have my accounts payable Department write a check or pay with a credit card whatever and then finally wanna have that bill then I'm gonna go to the last step which is a pay bill so that enter bills against inventory ends up being the same thing as enter bill and then the last step after entering bill against inventory or a regular interval is to ultimately pay that bill with that function and we talked about earlier how important it is for you to use a paperless function not the right check function to pay an open bill so let's - um workflow step by step so the first step is I'm gonna do a purchase order okay so in this purchase order I'm gonna select my vendor whoever is it that I buy stuff from so I'm gonna pick this vendor here and then I'm gonna go into item and pick what product I'm buying from them so let's say we're buying from them and we're buying from them 150 and then I'll pick another item here that I'm also buying from this vendor and let's say I'm buying some sprinkler heads and then I'm buying let's say 80 okay and these are 17 dollars and 80 cents a pop okay so down here that's the total amount of my purchase order that's how much I expect to pay my vendor so I'm gonna go ahead and select the date of the original purchase order date so let's say this is the day that I actually told my vendor I wanted the product and we'll put here December 1st 2017 that's the example and then we'll hit save and close so that was the first step the first step is we create the peel print that email that do whatever my vendor is gonna now take that peel and fulfill it and send me the product and send me an invoice so the next step is to click here was us receive inventory and then I'm gonna receive it without a build a focus let's assume that my inventory receiver process is separate then Accounts Payable paying my vendor bill so let's say a couple days later on the fifth that's when I actually receive the inventory so I'm gonna pick my vendor which is this one right here then the system is gonna tell me at what's before you keep going make sure that you pick an open purchase order that way you don't have to type the information over again and you can receive against the PLO so the PIO doesn't stay open so it doesn't say it in so many words but that's exactly the message that is trying to transmit so because I already did have a purchase order I'm gonna go ahead and hit yes and then in this screen which is actually pretty cool it will tell me every single purchase order that's open right so if there's multiple purchase orders open my choices are gonna be there so I'm gonna go ahead and select that one purchase order that I had created and then I'm gonna hit OK and then well QuickBooks is gonna do it's gonna go ahead and select every single item it's gonna tell you the description it's gonna tell you how many you're receiving the cost the amount and depending on what functions you have open you're gonna see more or less columns in here and then when I'm done receiving this inventory I will click on save and close and after I hit save and close of this item receipt what's gonna happen is it's not gonna be let me hit escape here what's gonna happen is it's not yet available for me to pay the bill because it's not a bill it's just an item receipt so if I try to go to pay bills and I won't see my vendor there so it won't be available for me to pay however if I go to the vendor Center and click on vendor Center and I go look for computer services by DJ it is gonna say that we owe them some money because we did receive the inventory and for accounting purposes that needs to be there so I'm gonna see this transaction here called item receipt which I can double click on it and I can always see it so that was the first step was to do a purchase order second one is to do an item BC then at some point in the future we actually get the bill and the best thing to do is if you just follow the workflow in the homepage you click on enter bills against inventory and then you're gonna have an eye box that says select item receipt and then I'm gonna select the vendor so I'm gonna go search for the same vendor that I'm using here and then I'm gonna see every single item receipt that I have if I happen to have multiple and when I click on that and I hit OK then it's gonna actually convert that item receipt to a bill and you're gonna notice that the little check box up here it says bill received actually if I don't check that it actually takes it back to the item you see so that's basically what it's doing is putting a little check mark and then at that point I can actually put the arrival date of the inventory so let's say is the 13th that way for the 13th on my whatever my terms are they say it's not 15 days it starts going from there now the other things that happen at the at this piece of the workflow is when you receive a bill much later on sometimes the dollar amounts were a hundred percent correct so at this point I can actually make any Corrections that I want based on what's in the actual bill and I can actually maybe add some sort of a shipping charge if if there wasn't included from the get-go and I'll add what a relationship in charge is because it's actually very common that on the purchasing process we don't really know what the shipping charges and my vendor just sends me the invoice that without a mountain and we just paid then also on the reference number this is what I'm gonna put the actual invoice number from my vendors or whatever the invoice number is I'm gonna read it off the of the paper and put it in there that way my accounts payable matches their accounts receivable okay so I'm gonna hit save and close so now I shouldn't have an Accounts Payable I have to make sure that this dollar amount up here matches a dollar amount appear so for whatever reason didn't highly correctly so I'll just finish adding it there so I'll hit save and close and then now I should be available to pay this bill so when I go to pay bills here so the last piece of the workflow and let's say later on in the future I paid the bill I should see my my vendor bill there so there it is so I put a little check back there I mark it and I tell the system I want to pay this bill and then I tell it how I want to pay so let's say for example I'm gonna pay with my credit card because I don't have any funds in my bank account and I want to pay with my credit card so instead of selecting a check here I also like credit card and then I'll pick whichever credit card I have the availability in for me to pay my vendor and then I'm gonna hit pay selected bills and they'll actually pretty much finishes the entire workflow so that's the workflow purchase order receive inventory create the bill against inventory and pay the bill that is the entire inventory workflow now some of the things that can happen to is maybe some of the product was damaged and we have to send it back for example so I'm gonna get a vent I'm gonna get a credit from my vendor because I'm gonna ship him back a couple of damaged products so the tricky thing is that there's no button that says vendor credit so it makes it kind of difficult for for a user to counter-intuitive somehow figure it out notice that even if they click on vendors in the vendors menu there's no option for vendor credit so you kind of have to know this by heart but it's only really way you'll be able to do a vendor credit is by knowing the mechanism so in order to create a vendor credit you have to click click on create enter bills it's a little bit counterintuitive because I build the sort of the opposite of a credit I build something you pay credit something that they owe you but up here at the top left there's a little box that says bill and then next to it it says credit so if I change it from bill to credit and I click on that button notice that now it's called credit at that point I can I can choose my vendors name so our vendors name was a computer or something yeah there it is and let's say on the 14th I'm gonna send them some product back that was damaged right so I'm gonna put let's say the sprinklers let's say 17 of them were bad so I'm just going to put they're 17 and they're gonna give me 18 dollars or credit a pop so by doing that I basically create a vendor credit of three hundred and six dollars hopefully I'm taking those 17 sprinkler heads out of my inventory putting them in a box shipping it to them and what that does is next time I owe computer services money I can use that three hundred and six dollars there was a future purchase or maybe they'll send me a check like that could happen too so I'm gonna hit save and close and I finishes the vendor credit