When you issue an purchase order to a vendor via QB, how does QB record this transaction?When you make a payment, how does QB record?

Hi there, suhdavidj.

Purchase orders tell vendors your intent to make a purchase.

In QuickBooks Online (QBO), when you issue a purchase order to tell vendors your intent to make a purchase, it's not recorded as a financial transaction in the accounting records.

Once the vendor accepts the purchase order and agrees to the given terms, you can quickly add it to an expense or bill transaction in QuickBooks. This will keep all the transactions connected and your accounts balanced. Then, when you make a payment to the vendor, it's recorded in the accounting records by reducing the accounts payable balance and reflecting the payment made to the vendor.

To know more about how in managing purchase orders and receive payments, see these articles:

• Create and send purchase orders in QuickBooks Online
• Enter and manage bills and bill payments in QuickBooks Online

For future reference, here's a great resource to help you close out your current year and prepare for the new year in QuickBooks with your accountant: Year-end guide for QuickBooks Online.

If you have other questions concerning QuickBooks, let me know in the comment section below. I'm always here to help. Have a good one!