QuickBooks 2012 Purchase Order Tips and Tricks
You should be aware of a few items when creating a purchase order in QuickBooks 2012. 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 you’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 gets a purchase order. If only you can issue purchase orders, you’ve effectively controlled purchasing activities through this procedure.
Following are a few important observations for you to note:
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 first 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, either. You definitely do need a way to control these expenditures, but purchase orders are probably not 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.