I was talking with an accountant in an office supply business who was used to linking to purchase orders for item receipts into inventory but wasn’t sure how to handle POs for non-inventory items that were drop-shipped from suppliers to customers. You can use purchase orders for services as well. Here’s how…
In the figure below, I am creating a purchase order for a service. Note that I have entered information in the “memo” field. This can be very helpful in identifying the correct purchase order from a list of POs.
If there are outstanding purchase orders for a vendor, you will be able to select from outstanding POs to complete your bill.
And that’s all there is to using purchase orders for non-inventory items and services.
Robert Guild is Advanced Certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users. His company at www.QBCoach.biz, maintains a sixteen-station QuickBooks lab, providing hands-on training. You can contact him directly at rguild@QBCoach.biz or follow him on twitter at QBPro