How to convert Purchase Orders in QuickBooks Online
If you prefer to have all of your transactions linked together, follow this guide to learn How to convert Purchase Orders in QuickBooks Online
OPTION 1: CONVERT YOUR PURCHASE ORDER TO A BILL
Pull up the Vendor name to find your list of transactions and locate the purchase order you want to change.
On the right side of the screen click the drop-down arrow next to the word Send
Select Copy to Bill
Linked Bill Created
The link symbol next to each of the items alerts you that a linked transaction added them
Assign Customer & Class for better tracking
Rate: The cost per unit on the bill.
Amount: Calculated from Qty x Rate
- Changing the Quantity and | or Amount to adjust the totals that were on the purchase order to match the billed amount.
- This is useful for modifying shipping charges or adding discounts when with terms.
Markup: Provide the markup percentage desired
Sales Amt: This will be auto calculated based on the Amount X Markup %.
Tax: Add a check-mark to make the item taxable
Customer: By assigning the customer name to the bill you can better track the costs per job.
Class: We utilize the classes to offer better reporting options.
Option 2: Add a Purchase Order to an Expense
If you already accepted an expense in from the banking area, they best way to clear out your existing purchase orders by linking a bill and a payment is to add the purchase order from the side pop out menu
Update the Purchase Order Totals
1: This is the amount that was initially on the expense transaction
2: The Item Details were populated from the transaction on the Purchase Order.
- You may need to adjust the pricing on the on the new items to make them match the bill and the cleared charge.
- When these totals match exactly you can click on the trash can in the top section and remove the account line item.
Total Error:
If the total of your bill does not match the amount of the downloaded transaction, this error message will be displayed.
Go back to the transaction and review the totals and modify to match.
Linked History
Now you have a complete history for the transaction from Purchase Order to the matching expense from the bank.
Keep the Shelf Empty
Best practice is to always keep the side shelf empty. If you still have items sitting in the shelf, most likely there is still more you can do with them.
Reviewing Your Action Items:
Send: Purchase orders that show Send have not been emailed to anyone yet.
Copy to Bill: Purchase orders that show Copy to a Bill have been emailed but not converted to a bill.
Print: Once a Purchase Order has been converted to a bill, Print will be displayed.
