Technical Tuesday is back! Today we discuss the ability to create and track Purchase Orders in the system. It is a wonderful tool to use to stay on top of your payables, particularly when it comes to running larger projects. Check out the website for more content www.bcbousa.com
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Similar to how we are able to track estimates, bills, and invoices in QuickBooks Online, we have ability to track Purchase Orders. POs are in a nutshell an agreement between you and your vendor that you are going to purchase an agreed upon product or service for an agreed upon price. It is different than bill because the money is not owed yet, simply and agreement that it will be owed in the future as long as all items on the PO are completed.
Purchase orders are great for tracking expenses on large projects. As the project begins and you secure bids from your vendors for their portion of the work to be performed you can create purchase orders once contracts are awarded. As bills come in from the vendors you can apply them to the purchase orders thus reducing the amount still owed on the original PO. Change orders for additional work or subtraction of work can be done as necessary. As always, you have the ability to save any supporting documentation directly to transaction for future reference.
As the project moves along you can access reports that will keep you informed on your payables remaining. Open Purchase Order reports can be customized to pull data from specific projects. Reports will provide data such as the total amount of POs issued for the project and the remaining open balance. As the job progresses this allows you to stay up to date to make sure you are current on your billings and plan out future expenses that already agreed upon to be incurred until project completion.
