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Purchases and Purchase Orders

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Please advise :

- Please advise if we can convert a purchase order (from a supplier) to an invoice (upon receipt of goods) in Quickbooks.

- And once converted the PO is deleted from the system.

Thank you

QuickBooks Online

Answer

We're happy to have you back, Koala.

Purchase Order is a non-posting transaction. It serves as your contract to a supplier. If both parties agreed to the terms of this contract, you'll then create a bill for it which is a posting transaction.

When the bill is created, you can't delete the PO for accounting purposes. If the bill is canceled, that's when you delete the PO.

Post some more questions if you need anything else.

A

Anonymous

Yes, you can convert a Purchase Order to a Bill, Koala.

Though QuickBooks allows you to delete the PO, it is not recommended. Accounting wise, it is important since it's your first contract to the supplier.

Here's how:

To create a Bill, click on the Plus icon.
Choose Purchase Order.
Enter the Vendor information.
From the PO page, click on Copy to Bill.
Enter the information.
Click on Save and Close.

We are here to support your business. Just let us know if you have any questions.

K

KoalaAuthor

Thank you for the quick reply.

Not sure if I am understanding correctly - please will you advise why we cannot delete the PO once it has been converted to a bill or alternatively if we cancelled the purchase.

TIA

A