How To Add Purchase Orders to Expenses, Bills, or Checks in QuickBooks Online (QBO)?

For businesses leveraging the best bookkeeping services in the USA, mastering QuickBooks Online (QBO) is essential to streamline workflows. One powerful feature that often goes underutilized is linking purchase orders (POs) to expenses, bills, or checks.

This guide will walk you through integrating POs into your QBO transactions—boosting accuracy, simplifying audits, and enhancing vendor management.

Why Integrate Purchase Orders with Expenses, Bills, or Checks in QBO?

Purchase orders are the backbone of organized procurement. By connecting POs to expenses, bills, or checks in QBO, you:

• Improve financial accuracy by matching transactions to approved orders.

• Simplify reconciliation with a clear audit trail.

• Enhance vendor relationships through timely payments and reduced disputes.

• Optimize inventory tracking for businesses managing stock.

For companies partnering with top-tier bookkeeping services in the USA like Acgile, this integration ensures seamless financial reporting and compliance.

Prerequisites for Adding Purchase Orders in QBO

Before diving in, ensure your QBO setup includes:

Enabled Purchase Order Feature: Go to Settings > Account and Settings > Expenses > Purchase Orders > Edit. Toggle the feature on.

Vendor and Product/Service Details: Confirm vendors and items linked to POs are added to QBO.

User Permissions: Grant access to employees managing POs, expenses, or bills.

Step 1: Create a Purchase Order in QBO

Navigate to the + New button on the left menu.

Under Vendors, select Purchase Order.

Choose the Vendor and fill in item details (quantity, rate, description).

Save or send the PO directly to the vendor.

Pro Tip: Use the Memo field to add internal notes for your bookkeeping team.

Step 2: Linking Purchase Orders to Expenses

Expenses in QBO typically represent immediate payments (e.g., cash, credit card). Here’s how to attach a PO:

Go to + New > Expense.

Select the Vendor and Payment Account.

Under the Category column, choose the item linked to your PO.

Click Add Purchase Order below the item line.

Select the relevant PO and click Apply.

Why It Matters: This ensures expenses align with pre-approved budgets, a critical step for businesses using professional bookkeeping services to track cash flow.

Step 3: Attaching Purchase Orders to Bills

Bills are used for credit transactions where payment is deferred. To link a PO:

Click + New > Bill.

Select the Vendor and input bill details.

Under Category, pick the item tied to your PO.

Click Add Purchase Order and select the applicable PO.

Save or schedule the bill for payment.

Best Practice: Review open POs under Reports > Purchases > Open Purchase Orders to avoid duplicate entries.

Step 4: Connecting Purchase Orders to Checks

Checks in QBO represent direct payments from your bank account. To attach a PO:

Navigate to + New > Check.

Choose the Payee (vendor) and Bank Account.

Select the Category related to your PO item.

Click Add Purchase Order and link the PO.

Print or e-send the check.

Note: Unlike bills, checks are recorded as instant payments, so ensure your PO balances match the check amount.

Best Practices for Managing POs in QBO

Regularly Reconcile POs: Match open POs with received goods/services weekly.

Use Customizable Templates: Tailor PO forms under Settings > Custom Form Styles.

Automate Alerts: Set reminders for due payments or pending POs.

Collaborate with Your Bookkeeper: Share PO reports with your trusted bookkeeping services provider like Acgile to ensure tax-ready records.

Common Challenges & Solutions

PO Not Appearing? Confirm the PO is marked “Open” and the vendor/item matches.

Duplicate Entries? Use the Find tool (Ctrl + F) to search existing transactions.

Incorrect Amounts? Edit the PO before linking it to expenses/bills.

Conclusion

Linking purchase orders to expenses, bills, or checks in QBO eliminates guesswork and strengthens financial integrity. For businesses seeking the best bookkeeping services in the USA, Acgile’s expertise in QBO optimization ensures your accounts payable process is efficient, audit-ready, and scalable. Start integrating POs today—your bottom line will thank you!

FAQs

Can I attach multiple POs to a single bill or check?

No, QBO currently allows one PO per transaction. Consolidate POs into a single order if needed.

How do I track open POs in QBO?

Run the Open Purchase Orders Report (Reports > Purchases > Open Purchase Orders).

What if a vendor sends an invoice without a PO?

Create the invoice in QBO, then manually link it to an existing PO using the Add Purchase Order button.

Can I edit a PO after linking it to a bill?

Yes, but edits will not update the linked bill. Adjust the bill separately for accuracy.

Why should I partner with bookkeeping services like Acgile for PO management?

Professional services ensure error-free PO tracking, compliance, and real-time financial insights, freeing you to focus on growth.