Payment on Purchase order issued.

Susan607 · ‎October 27, 2025

Hello Community,

I created a PO for a vendor. The vendor has sent the items and now I wish to apply the payment check against the PO. I don't see how to do this. The check has cleared but I've not issued an Invoice for payment. Is there a way to convert a PO to an invoice or apply invoices against a PO that has a given dollar amount on it for a vendor?

The payment in this case went via check to the vendor's bank so the vendor's name is not on the transaction that got uploaded to QB but rather QB added the bank as a vendor who got paid that amount.

Both vendor and bank have the same negative amount on the transaction amounts although the balances are zero in the vendor list pane to the left. There are no histories on either the vendor or bank.

How do I apply the bank amount to the PO issued to the vendor? Thank you. Much appreciated.

Jovelyn_M

I hear you, Susan, and I want to help.

I’ve read your original post about wanting to apply the check payment to the Purchase Order (PO), but the payment record is under a different vendor’s name (the bank).

You're actually on the right track, converting your Purchase Order into a Bill. It's just that you've missed putting a check mark on the listed PO, as shown in the screenshot:

That way, your PO will be linked to the corresponding bill. Once done, delete or void the check payment entry that’s under the bank’s name. After that, record a bill payment against the created bill using the bank account you actually used, and select Check as the payment method.

I’ll ensure this conversation remains open for any future updates and discussions.

View solution in original post

BabyB

Yes, you can convert a purchase order (PO) to a vendor invoice or bill and link it to the check to apply the payment, Susan.

Let's convert your PO to a bill first. Here's how:

Go to the Vendors and click Vendor Center.
Select the vendor for whom you created the purchase order.
From the New Transactions dropdown, choose Enter Bills.
After you select the vendor, QuickBooks will prompt you with a message; hit Yes.
Ensure all the details are correct, then click Save & Close.

Regarding the downloaded transaction that was labeled with the vendor’s bank as the payee, QuickBooks will use the details provided by your bank.

Now, let's link the bill to the payment to close the transaction. If the transaction is still on the NEED YOUR REVIEW page, we'll have to click the Select Bills to Mark as Paid to match it to the payment. Here's how:

Go to the Banking menu.
Choose Bank Feeds, then Bank Feeds Center.
Select the bank account used for the payment
Click on the Transaction List.
Locate the corresponding Purchase Order, and choose the Select Bills to Mark as Paid.
Enter the Vendor name.
Hit Add to QuickBooks.

If the transaction has already been added, we can utilize the Pay Selected Bill to link it to the check payment. Then, we'll update the Payee to the vendor's name and change the Account to Accounts Payable.

Let us know if you need further assistance. We're ready to help.

Susan607

This looks really good but I don't know where "New Transactions" dropdown is with Enter Bills

If I go here to top menu for Vendors and select Enter Bills this comes up, I select yes.

Then I get this which I select PO and hit OK:

Finally I get this bill generated which is not a conversion of the PO with it's line items and amount:

Is there something else that needs to be done to find New Transactions and to covert this PO to invoice/bill? This really isn't it. Thank you.

PS I don't see anyway a NEED TO REVIEW page. And Banking tab does not have a Bank Feeds Center:

If I go to Downloaded transactions I can bring up banking account that paid for that PO but there is no Transactions List let alone a Purchase Order etc on your instructions. Thank you.

ZackE

Thanks for getting back with the Community, Susan607.

When entering checks in QuickBooks, they'll need to be made out to your vendor's name, not the vendor's bank. This ensures proper recording and application to your vendor's account. Writing a check to the vendor's bank can possibly lead to reconciliation issues, unpaid bills remaining open, and incorrect vendor payment history within QuickBooks.

Once you've received the goods you ordered with your purchase order, you record it in QuickBooks. How you do this depends on when you pay for the items. You create an item receipt if you'll get a bill at a later date. A bill is created if you received a bill when you received your items. If you paid for the items as soon as you received them, you'd create a check or credit card charge.

To confirm everything's being entered correctly in your books, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a detailed resource about working with purchase orders which may come in handy moving forward: Use purchase orders

I'll be here to help if there's any questions. Have a wonderful Tuesday!

Susan607

Hello Zack - This is a worthless reply. It's like you hadn't read any of the thread before jumping in. You didn't answer any of the questions I posed even with images to let you know what I was seeing. You ignored my questions as where to find things and how to achieve the results needed to accomplish closing out a PO.

The link to the article was for 2020 versions of desktop and also doesn't answer any of the questions I asked. Had you read it? And finally I find it insulting to insinuate I need an accountant when I'm looking to navigate within QB and that I should find an advisor.

Hopefully, someone else on your staff can read this thread about my questions and be able to answer them. Thank you.

Jovelyn_M

I hear you, Susan, and I want to help.

I’ve read your original post about wanting to apply the check payment to the Purchase Order (PO), but the payment record is under a different vendor’s name (the bank).

You're actually on the right track, converting your Purchase Order into a Bill. It's just that you've missed putting a check mark on the listed PO, as shown in the screenshot:

That way, your PO will be linked to the corresponding bill. Once done, delete or void the check payment entry that’s under the bank’s name. After that, record a bill payment against the created bill using the bank account you actually used, and select Check as the payment method.

I’ll ensure this conversation remains open for any future updates and discussions.

Susan607

Thank you for tending to this thread and answering the question posed. I would suggest you get rid of the PO information from the original answer because it does not address the current version of QB desktop for MAC. Neither does the article recommended that was giving advice on 2020 versions.

Your solution worked and I can happily move on. I changed the check payment information to the vendor. This required a rebuild of the data but payment came out of correct reconciled bank account and there's a zero balance on the AP account for the vendor. Thank you, Jovelyn.

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Payment on Purchase order issued.