A purchase order is an official agreement between a buyer and a seller. This official agreement technically outlines the details of a sale between a buyer and a seller. The agreement also contains the details of the name of the product, the quantity and the price. This document is crucial as it helps to avoid any errors throughout the transaction. The blog will cover the basics on how to create a purchase order in FreshBooks.
You can contact FreshBooks Support at 1-(855)-542-9309 for any professional advice or support if you encounter any problem, you can’t resolve.
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Table of Contents
The Basics of FreshBooks purchase order and Why do we Use Them?
As you know that the FreshBooks purchase order is a form generated by the customer that explains the specifics of a sale. Purchase order includes the following:
- A date.
- Purchase order number.
- Vendor contact information.
- Description, Quantity and price.
- Special notes that include any specific conditions that should be noted or are included.
With the basics of a purchase order, it’s best you know why we tend to use them. Using them benefits the buyer and seller separately. Let’s discuss both of them below:
For the buyer, a purchase order can:
- Help them manage and track incoming orders.
- You can also manage your budgets effectively.
- Planning inventory is easy with purchase orders.
For the seller, a purchase order can benefit them in the following ways:
- By giving them access to faster payments.
- A purchase order offers protection as it protects the seller against non-payment.
- You can also have better inventory control and tracking with a purchase order.
Now that you are aware of the basics and the benefits the next section will cover the fundamentals of how the purchase order works.
How does A Purchase Order work in FreshBooks?
The points below will explain the process through which the purchase order works. You’ll also see an example to understand the purchase order. Go through the steps given below:
- A purchase order allows for the entry of purchase order information, routing for digital approval, and automatic generation of a purchase order number.
- Let’s say a purchase order was approved six weeks ago for a large bottle water company. Finally, today the labels were delivered to the shipping department. The next step involves the company receiver (the one who signed the delivery) going online in the warehouse and punching the purchase order number. The purchase order number is found on the shipping form.
- This way the system updates the status of the purchase order to display that the product was received.
- You should also note that the company’s inventory also gets updated at the same time. Now, when the shipping label manufacturer moves to invoice the company then the transaction is done when the purchase order number will show. All this is possible at just one click. No need to email or search for anything as the system gets updated automatically.
Conclusion
This blog covers the fundamentals of how to create a purchase order in FreshBooks. You also saw the benefits that come with it and what information is included on a purchase order. With this, you should have a fair idea of how to create a purchase order in FreshBooks. You can certainly reach out to FreshBooks Help Desk via 1-(855)-542-9309 if you feel require additional support or assistance with any of the steps mentioned above.
Erica Watson is writing about accounting and bookkeeping for over 7+ years, making even the difficult technical topics easy to understand. She is skilled at creating content about popular accounting and tax softwares such as QuickBooks, Sage, Xero, Quicken, etc. Erica’s knowledge of such softwares allows her to create articles and guides that are both informative and easy to follow. Her writing builds trust with readers, thanks to her ability to explain things clearly while showing a real understanding of the industry.