# Vendors - Purchase Orders

Purchase orders are used to enter inventory and services purchased from a vendor. Reports can be generated to list the inventory shortfalls and inventory purchases. Each inventory item has a minimum balance field that can be used to help identify when inventory needs to be ordered. Purchase orders do not affect your financial situation, income statement or balance sheet. they merely act as a placeholder to determine inventory stock levels needed to add or replace inventory stock levels.

Purchase Order features:

- Multiple inventory line items
- Separate billing and shipping address
- Drop ship ability
- Individual general ledger accounts for each line item
- Freight estimator to calculate shipping costs
- Sales tax can be added to PO
- Customizable payment terms

### Related Topics

#### Vendor Accounts

Entering a new vendor
Editing a vendor account
Deleting a vendor account
Setting vendor payment terms and credit limits

#### Purchase Orders

Entering a purchase order
Editing a purchase order
Deleting a purchase order
Closing a purchase order
Checking purchase order status (Purchase Order Manager)

#### Purchases/Receive Inventory

Receiving inventory from a purchase order
Receiving inventory directly from a vendor

#### Other Vendor Actions

Generating a request for quote (RFQ)
Writing a check to a vendor
Issuing a vendor credit memo

#### Reports and Forms

Checking vendor balances