QuickBooks 2014 Purchase Order Tips and Tricks
You should be aware of a few items when creating a purchase order in QuickBooks 2013. Many small businesses don’t use purchase orders. But when they grow to a certain size, many businesses decide to use them because purchase orders become permanent records of items that they’ve ordered. What’s more, using purchase orders often formalizes the purchasing process in a company.
For example, you may decide that nobody in your firm can purchase anything that costs more than $100 unless he or she gets a purchase order. If only you can issue purchase orders, you’ve effectively controlled purchasing activities through this procedure.
Here are a few things you should know about purchase orders:
Not every purchase deserves a purchase order. If you’re not used to working with purchase orders, it’s easy to go overboard when you start using this handy tool. Nevertheless, keep in mind that not all purchases warrant purchase orders.
Use purchase orders to manage buying. Typically, businesses use purchase orders as a way to control and document purchases. In fact, many purchases don’t really require a purchase order.
Amounts that you’ve agreed to purchase that are documented through standard contracts — such as bills from the telephone company, the gas company, and your landlord — don’t need purchase orders, obviously. In addition, modest purchases like office supplies often don’t need purchase orders. You definitely need a way to control these expenditures, but purchase orders probably aren’t the way to go.
Consider other, complementary control tools. Other budgetary controls, such as approval from the supervisor or a simple budget, often work just as well.