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A purchase order (PO) is a document you can send to a vendor. It states your intent to purchase products or services from them and defines the details of the purchase, such as quantities and prices. If the vendor accepts your PO, it means you have an agreement with them to receive those products or services under the terms given.
Purchase orders are available in QuickBooks Online Plus and in our older QuickBooks Online Edition products (with optional Sales package enabled). To see if the feature is enabled in your company, go to the Vendors tab and look for Purchase Order. If you don't see that option, you'll need to enable the feature before you can use it. Purchase orders aren't available in QuickBooks Online Essentials or Simple Start.
Right now you aren't able to customize purchase orders further with different content, layout and style options that are customizable on invoices and estimates. If you'd like to leave feedback about this subject for future product releases, you can click the Feedback link from the bottom of any page in the QBO to do so.
As you enter a purchase order, you'll see that the Status in the upper-right corner is automatically set to Open. This status will be changed to Closed when the PO is added to a vendor transaction. You can edit an existing PO at any time to change its status if needed.
Note: When adding a purchase order, you can select a customer for each line item. To make these items billable to the customer(s), you must mark the Billable box after adding the PO to a vendor transaction.
If a PO is accepted and the product/service is provided by the vendor, you'll need to record a bill, a check, a credit card charge, or a cash transaction showing what you paid (or what you owe) the vendor.
Note: QuickBooks Online doesn't have a way to add part of a PO to a transaction. If you're paying only part of a PO's amount for now, the best option is usually to add the full amount of the PO to a Bill, then record a Bill Payment for the partial amount that you're paying. A second option is to create a second PO for any "backordered items" using an extension of the Original PO number. ( i.e.: "B/O", "A", "B" or ".2, .3"etc.) This will enable the original PO to be added to the bill and the backorder can be used to determine the remainder that is due. If you choose not to record a bill, you'll need to edit the amount after adding the PO to the transaction and you'll also have to manually keep track of how much is still owed