Creating purchase orders in Xero is a helpful way to streamline your procurement process and maintain organized records of your orders with suppliers. Here’s how to create purchase orders in Xero:
- Log In to Xero:
- Start by logging in to your Xero account using your credentials.
- Access the Purchases Section:
- From the Xero dashboard, navigate to the “Purchases” or “Accounts Payable” section in the left-hand menu.
- Create a New Purchase Order:
- In the “Purchases” section, look for an option like “Create Purchase Order” or “New Purchase Order” and click on it.
- Select a Supplier:
- In the purchase order form, select the supplier for whom you’re creating the purchase order. You can choose a supplier from your contacts list or create a new contact if the supplier isn’t already in your contacts.
- Add Line Items:
- Begin adding line items to the purchase order. For each line item, include details such as the product or service, quantity, unit price, and any applicable tax rate. Xero will calculate the subtotal, taxes, and total for you.
- Delivery Date and Reference:
- Specify the delivery date for the order, as well as any additional references or notes related to the purchase order.
- Save or Send:
- After completing the purchase order, you can choose to save it as a draft, approve it, or send it to the supplier via email. Saving it as a draft allows you to review and edit the purchase order before finalizing it.
- Review and Confirm:
- Before sending the purchase order, review the details to ensure accuracy. Make any necessary adjustments or corrections.
- Repeat as Needed:
- If you have multiple purchase orders to create, repeat the process for each order.
- Print or Save as PDF (Optional):
- You have the option to print the purchase order or save it as a PDF for your records or for sharing with the supplier.
- Receive Goods and Services:
- After sending the purchase order and receiving the goods or services from the supplier, you can use Xero to record the receipt of items. This helps you track inventory and match received items with purchase orders.
- Convert to Bills (Optional):
- If you receive an invoice from the supplier for the items ordered, you can easily convert the purchase order into a bill in Xero, which simplifies the accounts payable process.
- Reports:
- Use Xero’s reports to track and monitor your outstanding purchase orders, review your accounts payable, and analyze your procurement activities.
Creating and managing purchase orders in Xero streamlines your procurement process, helps you maintain accurate records, and facilitates efficient communication with your suppliers. It’s a valuable feature for businesses that frequently purchase goods and services.
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