# Closing a Vendor Purchase Order

Purchase orders can be closed for several reasons. They may be closed directly from the Edit PO screen by selecting the close button.Closed POs will not affect the inventory levels or appear in any inventory stock level calculations. POs may also be closed by PhreeBooks if all the items have been received through the Purchase/Receive screen. Closing a purchase order will remove all remaining 'quantity on order' quantities from inventory identified in the purchase order being closed that have not been received.

1. From the Vendors Menu, select Purchase Orders. The Purchase Order form will load.
2. Press the Open button and a popup will appear listing the purchase orders for the current period. Select the sales order to be closed and the sales order form will be filled in.
   NOTE: Use the period pull down and search box to facilitate locating the desired purchase order.
3. Check the Close selection box.
4. Press the Save button.

When a purchase order is closed, the quantity on order values are readjusted. This action will not affect the income statement or balance sheet since a purchase order represents an allocation of inventory and not an actual purchase (monetary transaction).

### 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
Checking purchase order status (Purchase Order Manager)