Creating Purchase Orders and Receiving Items in QuickBooks Online #

For businesses that manage inventory, keeping track of purchase orders and receiving items efficiently is crucial. 

With register as your checkout, you will use QuickBooks Online to handle purchase orders and bills also known as receiving in stock which will simplify operations and keep your inventory records accurate. 

This guide explains how to create and receive purchase orders directly in QuickBooks Online, and how that integrates with register.

Why Use Purchase Orders? #

Purchase orders (POs) are documents sent to vendors to confirm an order of goods or services. Using purchase orders offers several benefits:

• Provides a formal record of the items ordered and agreed-upon prices
  
• Prevents duplicate or unauthorized purchases
  
• Helps manage inventory levels and costs
  
• Streamlines receiving and reconciliation

Note: QuickBooks Online allows for multiple ways to navigate to the same feature. This guide offers one common method, but your layout may vary depending on your version (Simple Start, Essentials, Plus, or Advanced) or your personal preference for navigation. 

Step 1: Creating Purchase Orders in QuickBooks Online #

1. Log in to QuickBooks Online.
   
2. Select the + New button and click Purchase Order under the Vendors section.
   
3. Choose your vendor from the dropdown list.
   
4. Enter the item details:
   
   • Select products/services from your QuickBooks Online item list.
   • Enter quantities and rates.
   • Set the Ship To address.
   • Add a message to the vendor. (optional)
   • Add a memo. (optional)
   • Add attachment. (optional)
5. Click Save and send to email the PO to your vendor, or Save and close to save it without sending.
   

Tip: Keep your item list up-to-date in QuickBooks Online so your POs and inventory tracking stay accurate.

Step 2: Receiving Items in QuickBooks Online #

When your vendor ships the goods, you’ll need to record the bill/receipt in QuickBooks Online:

1. Navigate to the + New menu and choose Bill or Item Receipt (if you have QuickBooks Online Plus or Advanced).
   
2. Select the vendor.
   
3. If there is an open purchase order, QuickBooks will prompt you to add it.
   • If you did not create a PO, simply add the items to the bill and save.
     
4. Choose the PO and click Add to bring the details into the bill.
   
5. Update received quantities:
   
   • If you’re doing partial receiving, adjust the quantities accordingly.
     
6. Save the bill to finalize the receipt of items.
   

This process:

• Updates your inventory counts in QuickBooks Online
  
• Records the cost of goods received to an asset account until they are sold or adjusted.
  
• Creates a payable for the vendor invoice

How register works with this #

register is not used to receive items directly. Instead, it reads the updated inventory and product data from QuickBooks Online. When you receive items into QuickBooks Online:

• Inventory counts automatically update.
  
• register syncs with QuickBooks Online to reflect the updated quantities and costs of goods when a product is sold on a transaction. 
  

This ensures:

• Inventory accuracy at the register checkout
  
• Real-time access to stock levels
  
• No duplication of effort—everything happens in one system (QuickBooks Online)
  

Benefits of This Workflow #

• Centralized purchasing and receiving in QuickBooks Online
  
• Real-time inventory visibility in register
  
• Accurate cost tracking and financial reporting
  
• Seamless sync—no need to re-enter data into the register
  

Final Tips #

• Check your item setup in QBO to ensure inventory is tracked correctly.
  
• Set vendor defaults for items to speed up PO creation.
  
• Use reports like Open Purchase Orders or Inventory Valuation Summary to monitor outstanding orders and stock levels.

Final Notes #

By handling purchasing and receiving in QuickBooks Online and using register to manage sales and transactions, your business benefits from:

• Streamlined workflows
  
• Reduced manual entry
  
• Unified inventory and accounting

Need Help? #

If you need assistance with understanding how your product list, purchase order and receiving workflow for inventory syncs with register contact our support team at support@abilitybusiness.com or visit Ability Wiki — register help center.

If you need help setting up, our support team is here to help.

More resources for QuickBooks Online.