Creating and managing purchase orders can be time-consuming and prone to errors, especially if you manage multiple vendors.

QuickBooks simplifies this process by automating tracking, linking POs to expenses or bills, and keeping inventory accurate.

This guide will show you how to create POs in QuickBooks Online and Desktop.

Let’s begin!

What is QuickBooks?

QuickBooks is an accounting software that helps businesses manage their finances, including invoicing, expense tracking, payroll, and purchase order management.

It provides two primary versions for PO management:

• QuickBooks Online: A cloud-based solution offering flexibility, real-time data access, and automated financial tracking.
• QuickBooks Desktop: A locally installed software with advanced inventory and PO management features.

❗ To manage purchase orders in QuickBooks, you’ll need QuickBooks Online Plus or Advanced or QuickBooks Desktop Pro, Premier, or Enterprise pricing plan.

Why create purchase orders in QuickBooks?

Without a structured system, purchase management can lead to stock shortages, overspending, or supplier disputes.

Using POs in QuickBooks ensures:

✅ Accurate order tracking: Link POs to expenses and bills for seamless financial management.

✅ Better inventory control: Monitor outstanding orders and track received stock.

✅ Improved vendor communication: Standardized order details help suppliers process requests efficiently.

✅ Financial transparency: Keep purchase records organized for budgeting and expense tracking.

What should every purchase order include?

There are various types of purchase orders, including:

• Standard POs, 
• Blanket POs for recurring purchases and 
• Contract POs for long-term agreements.

However, regardless of the type, every purchase order should include the following details:

• Vendor details: Name, address, and contact information.
• PO number: A unique identifier for tracking.
• Order date: The date the PO is issued.
• Shipping information: Destination address and preferred shipping method.
• An itemized list of products: Including quantities, unit prices, and total cost.
• Payment terms: Agreed-upon payment method and due dates.
• Additional notes: Special instructions or vendor-specific details.

For further details, check out this article for a Free Purchase Order Template tailored for eCommerce needs!

How Fabrikatör and QuickBooks work together?

Fabrikatör's QuickBooks integration simplifies inventory and accounting management by automatically syncing purchase orders (POs) between the two systems.

With this integration, you can easily create and manage POs in Fabrikatör for inventory planning and then seamlessly transfer them to QuickBooks for financial tracking.

This solution provides real-time synchronization of purchase order details, including product names, SKUs, quantities, and total costs, directly into QuickBooks.

Fabrikatör's integration ensures that financial records are always up-to-date and eliminates the need for manual data entry, saving time and reducing errors.

How to create and manage POs in QuickBooks Online

Now, let’s go through each step of creating and managing purchase orders in QuickBooks Online.

The first step is to enable POs in QuickBooks. Let’s see how it’s done.

1. Enable purchase orders in QuickBooks Online

Before creating POs, you must activate the purchase order feature.

1️⃣ Click the Gear Icon (⚙️) in the top-right corner.

2️⃣ Select Account and Settings > Expenses tab.

3️⃣ Find the Purchase Orders section and click the Edit (✏️) icon.

4️⃣ Toggle Use Purchase Orders to ON.

5️⃣ (Optional) Add up to three custom fields for vendor-specific details.

6️⃣ Click Save and then Done to apply changes.

2. Create and send a PO in QuickBooks Online

Once POs are enabled, follow these steps to create and send them.

1️⃣ Click + New on the left sidebar.

2️⃣ Select Purchase Order under the Vendors section.

3️⃣ From the Vendor Dropdown (▼), select the supplier.

4️⃣ Review the Mailing Address (update if necessary).

5️⃣ If shipping directly to a customer, choose Ship To ▼ and verify the address.

6️⃣ Enter the Purchase Order Date.

7️⃣ Click Settings (⚙️) to add custom fields if needed.

8️⃣ In Item Details, enter the products/services, including quantities and unit prices.

9️⃣ Click Save and Close or Save and Send to email it to the vendor.

💡 Need to send the PO later?

Go to Expenses > Find the PO > Click Send under the Action column.

3. Convert a PO into a bill in QuickBooks Online

Once a vendor accepts a PO and ships the goods, you need to update the PO status and convert it into a bill.

1️⃣ Click Expenses > Vendors in the left-side menu.

2️⃣ Locate the vendor and select the corresponding Purchase Order.

3️⃣ Click Copy to Bill to transfer all PO details into a new bill.

4️⃣ (Optional) Add any additional charges or items received.

5️⃣ Click Save and Close.

💡 Once converted, QuickBooks automatically marks the PO as ‘Closed.’

How to track open POs in QuickBooks Online

To view pending POs, run one of these reports:

📌 Open Purchase Order List – Displays all POs that haven't been converted to bills.

📌 Open Purchase Order Detail – Shows a detailed breakdown of open POs.

📌 Purchases by Product/Service Detail – Analyzes purchase patterns based on products/services.

📌 Purchases by Vendor Detail – Tracks vendor-specific purchase activity.

To access reports:

1️⃣ Click Reports on the left menu.

2️⃣ Search for your desired PO report.

3️⃣ Apply filters to refine the data.

How to create and manage POs in QuickBooks Desktop

Now, let’s see how this works in QuickBooks Desktop.

1. Enable PO in QuickBooks Desktop

1️⃣ Go to Edit > Preferences.

2️⃣ Select Items & Inventory > Company Preferences.

3️⃣ Check the Inventory and purchase orders are active box.

4️⃣ Click OK to save changes.

2. Create a purchase order

1️⃣ Go to Vendors > Create Purchase Orders.

2️⃣ Select a Vendor from the dropdown list.

3️⃣ Enter the PO Date, Shipping Address, and Terms.

4️⃣ Add items under the Item Details section (quantity, rate, and amount).

5️⃣ Click Save & Close to finalize the PO.

💡 To convert a PO into a bill, simply open the PO and select ‘Copy to Bill.’

Managing purchase orders in QuickBooks Desktop

• Track Open POs: Go to Lists > Customer & Vendor Profiles > Purchase Orders > Change view to Open Purchase Orders.
• View PO History: Click the History Icon within the PO window.
• Generate PO Reports: Go to Reports > Purchases > Open Purchase Orders.

📄 Need a printed copy?

Go to File > Print Forms > Purchase Orders and select the PO to print.

Fabrikatör: A smarter way to manage purchase orders

Managing purchase orders manually can lead to delays, errors, and inefficiencies.

Fabrikatör simplifies PO management with automated workflows, real-time tracking, and seamless supplier communication, ensuring you can create, share, and track purchase orders effortlessly.

1️⃣ Effortless purchase order creation & customization

Fabrikatör allows businesses to create supplier-specific purchase orders with minimal effort. Instead of manually sorting through suppliers, you can:

✅ Automatically filter products by the supplier for quick PO creation.

✅ Include supplier-specific SKUs to eliminate errors and improve order accuracy.

✅ Customize order quantities, add notes, or remove line items as needed.

📌 Want even more control? Use Replenish, Plan, or Standalone PO creation modes to tailor orders to your business needs.

2️⃣ Streamlined PO sharing & supplier communication

Once a PO is created, Fabrikatör makes it easy to send orders directly to suppliers while maintaining a professional and organized approach.

🔹 How to share a PO in Fabrikatör:

1️⃣ Navigate to the Purchase Orders page.

2️⃣ Click the Share button on the PO you want to send.

3️⃣ Customize the email subject, message, and attachments (PDF or CSV).

4️⃣ Choose your preferred email sender from pre-approved addresses.

5️⃣ Click Send to share the PO with your supplier instantly.

💡 Need a custom PO template? You can select from available templates or create new ones for a consistent format.

3️⃣ Importing & bulk managing purchase orders

Handling purchase orders across multiple suppliers can be overwhelming, but Fabrikatör lets you bulk import POs effortlessly.

🔹 How to import POs from spreadsheets:

✅ Upload .xls or .csv files directly into Fabrikatör.

✅ Match column names to ensure correct data mapping.

✅ Click Import and let Fabrikatör handle the rest.

4️⃣ Advanced shipment tracking & freight management

Once a PO is sent, tracking shipments is crucial for efficient inventory management. Fabrikatör can provide:

🚚 Tracking code integration: Easily add tracking codes to purchase orders for real-time shipment monitoring.

🚛 Freight planner: Select from Air, Ocean, Rail, or Road shipping methods or create custom options.

📊 Tracking & freight reports: Analyze shipping performance directly within Fabrikatör.

💡 Want to analyze freight costs? Include freight details in POs and generate cost reports effortlessly.

5️⃣ Simplified inventory receiving & stock updates

When inventory arrives, updating stock levels manually can lead to delays and discrepancies.

With Fabrikatör’s Receive Inventory feature, you can:

✅ Update received inventory in real-time and sync with Shopify instantly.

✅ Accept or reject stock directly from the PO and track partial shipments.

✅ Use barcode scanners for fast and accurate receiving.

📌 Rejected inventory is automatically documented for reporting without affecting stock levels or restocking recommendations.

💡 Tip: Use the "Accept All" or "Reject All" buttons for quick bulk updates.

6️⃣ Managing minimum order quantities (MOQs) & batch sizes

Fabrikatör ensures bulk ordering efficiency by allowing businesses to set Minimum Order Quantities (MOQs) and batch sizes.

🔹 MOQ features:

✅ Set MOQs at the Product Group Level (e.g., all color variants must meet MOQ).

✅ Adjust individual product MOQs as needed.

✅ Receive real-time warnings if a PO does not meet MOQ requirements.

💡 Need to adjust batch sizes? Use the Round Up/Round Down feature to align with supplier constraints.

7️⃣ Customizing purchase order emails & numbering

Fabrikatör allows full control over PO emails and numbering formats to match your business’s communication style.

📌 Edit PO numbering preferences:

✅ Set custom prefixes (e.g., "PO#" or "LB123").

✅ Adjust the next PO number for sequential ordering.

✅ Update PO numbers manually for one-time adjustments.

8️⃣ Managing & sorting purchase orders efficiently

Keeping track of multiple purchase orders can be challenging, but Fabrikatör helps businesses stay organized and maintain clear records.

📌 Sorting purchase orders:

✅ Sort POs by product name, quantity, or fulfillment status for quick access.

✅ Automatically save preferred sorting settings for future use.

📌 Archiving & deleting POs:

✅ Archive old or completed POs to declutter your dashboard.

✅ Delete draft or approved POs if they are no longer needed.

✅ Keep a record of archived POs and restore them anytime.

9️⃣ Reverting received inventory in case of errors

Mistakes happen, and sometimes you need to reverse received inventory updates.

Fabrikatör makes this easy:

🔹 How to revert received inventory:

1️⃣ Go to the Purchase Orders page.

2️⃣ Click the Revert button on the PO you want to adjust.

3️⃣ Choose whether to update Shopify or keep changes local.

4️⃣ Confirm the action - once reverted, changes cannot be undone.

📌 All reverted items are documented with a strike-through in activity logs for transparency.

🔟 Supplier SKU & real-time Shopify syncing

Fabrikatör ensures accurate supplier communication and inventory syncing by allowing businesses to:

✅ Store supplier SKUs under each product alongside internal SKUs.

✅ Ensure supplier SKUs are included in POs, reducing miscommunication.

✅ Sync inventory in real-time with Shopify, preventing overselling.

💡 Need to order new products? Create placeholder SKUs in Shopify before placing a PO to keep records consistent.

Conclusion: Automate & optimize PO management with Fabrikatör

Fabrikatör is an inventory management tool for Shopify stores that takes purchase order management to the next level by integrating forecasting, automated order creation, supplier management, real-time inventory tracking, and shipping optimization into a single platform.

🚀 Key Takeaways:

✅ Create & customize POs based on suppliers and demand.

✅ Sync inventory with Shopify for real-time accuracy.

✅ Automate PO tracking, freight management, and inventory receiving.

✅ Eliminate errors with supplier SKUs and minimum order quantity warnings.

✅ Use AI-powered forecasting to optimize stock levels.

And much more:
✨ Dynamic inventory planning with customizable templates for peak shopping seasons like Black Friday or holiday events.

✨ Automated supply planning that generates PO recommendations based on sales trends, supplier lead times, and replenishment cycles.

✨ Configurable replenishment intervals to optimize restocking frequency and maintain steady inventory flow.

✨ Seamless backorder management by linking incoming stock to POs, allowing continued sales even when inventory is in transit.

✨ Analyze 100+ metrics for data-driven decision-making, including sales trends and inventory health.

✨ Integration with QuickBooks, Katana, and Klaviyo to automate workflows, improve supply chain visibility, and enhance inventory accuracy.

Looking to streamline purchase orders for your business?

Try Fabrikatör or request a demo today to take control of your inventory management and purchase orders!