How to Link Sales Orders to Purchase Orders in QuickBooks Desktop Enterprise

Before you start

• Intuit describes this feature for QuickBooks Desktop Enterprise 24.0, release R9. If you're on an earlier release, we suggest updating first.
• Sales orders must be on. Check Enable Sales Order at Edit > Preferences > Sales & Customers > Company Preferences.
• Turning on the linking preference closes every open window. Save your work first.
• Decide how to split lines when one item comes from more than one vendor. Intuit suggests a separate sales order line for each vendor.

We suggest linking for special orders, where you buy from a supplier because a customer ordered first. When the supplier ships straight to the customer, also see how to handle drop shipments. To get a current release, see how to update QuickBooks Desktop to the latest release.

Step 1: Turn on linking

1. 1Go to Edit > Preferences.
2. 2Select Items & Inventory, then Company Preferences.
3. 3Select Link and track sales order line items with purchase orders.
4. 4Select OK. QuickBooks closes all open windows to apply the change.

Step 2: Enter and save the sales order

1. 1Go to Customers > Create Sales Orders.
2. 2Choose the Customer:Job and the date.
3. 3Add the items, with quantity, amount and the other details.
4. 4Select Save.

The rest of the form is covered in how to create a sales order and turn it into an invoice.

Step 3: Create the purchase order from the sales order

1. 1From the saved sales order, select Create Purchase Order.
2. 2Choose whether to create it for all allowed items or only for items you select.
3. 3If you chose selected items, pick the lines to order and select OK.
4. 4Select OK. QuickBooks creates a new purchase order with its own number in P.O. NO.
5. 5Before you send it, we suggest opening the new purchase order and checking the vendor, items, quantities and costs.

Intuit's article doesn't explain which lines count as allowed, or how QuickBooks picks the vendor. That's why the last check matters.

Step 4: See which purchase order covers each line

1. 1Go back to the sales order. A new Linked PO column shows a link to the purchase order for each linked line.
2. 2Double-click the link to open that purchase order.
3. 3To order more lines, select them and repeat Step 3. Each run creates and links another purchase order.

When one item comes from two or more vendors, Intuit suggests splitting the quantity across separate sales order lines. Each line then gets its own linked purchase order, so every vendor's share stays easy to follow.

Show the link on printed sales orders

1. 1Open the sales order and select Formatting.
2. 2Select Customize Data Layout and open Columns.
3. 3Check Linked PO under Screen, Print or both. Change its Order number to move it.
4. 4Select OK.

Step 5: Track linked orders with the report

1. 1Go to Reports > Sales.
2. 2Select Sales Orders Linked to Purchase Orders.
3. 3Read the Linked PO column for the purchase order behind each line, and the Item Received column for how many have arrived.
4. 4Customize the report to show or hide columns, or filter it on a column.

What happens when the goods arrive

Intuit's linking article doesn't cover receiving, so we suggest receiving the purchase order the usual way. Open the Receive Inventory dropdown and choose Receive Inventory with Bill or Receive Inventory without a bill. Pick the vendor, select Yes to receive against a purchase order, and choose it.

Intuit says receiving updates quantity on hand for each item and the amount owed to the vendor. The Sales Orders Linked to Purchase Orders report shows the received quantity in its Item Received column.

Intuit's linking article doesn't say that received goods are held for the linked customer. Plan who makes sure they go to that order, and invoice the customer from the sales order when it ships.

The receiving steps are in how to receive inventory against a purchase order. If only part arrives, see how to handle backorders and partial shipments.

In Enterprise, the purchase order management worksheet tracks purchase orders by site, status or vendor. You turn it on in Advanced Inventory Settings. Intuit says you can do that only while Enhanced Inventory Receiving is off. See how to use the purchase order management worksheet.

Editing or removing a link

Intuit's articles don't cover editing a linked purchase order, removing a link, or what happens to the link if you delete either form. We suggest running the Sales Orders Linked to Purchase Orders report after any change, to confirm what QuickBooks now shows.

If the customer changes the order after you've bought for it, we suggest updating both forms and telling the supplier.

Things that trip people up

• The preference closes every open window, so unsaved work is at risk.
• Intuit's steps start from a saved sales order. Save it before you look for Create Purchase Order.
• Look for the Sales Orders Linked to Purchase Orders report under Reports > Sales.
• One line bought from two vendors is hard to follow. Put each vendor's quantity on its own line.

Where QuickBooks Desktop leaves the work to you

• Someone has to decide which customer lines to buy in, and from which vendor.
• Someone has to send each purchase order and get the supplier to confirm dates and quantities.
• Someone has to watch the Item Received column and invoice the customer once the goods are in.
• When the customer asks where their order is, someone has to open the linked purchase order and ask the supplier.

For chasing suppliers, see how to find open and late purchase orders.

How Logistify helps

The Sales Order Service enters customer orders that arrive by email, PDF, WhatsApp, SMS, voicemail or paper into QuickBooks Desktop as sales orders, with a person reviewing exceptions. The Procurement Service follows up with the supplier on the open purchase order. Your team still creates and links the purchase order.