Create a purchase order

Create a purchase order to let your supplier know you want to buy goods or services from them.

How to create a purchase order

  1. Go to Accounts > Purchases.

  2. Click the arrow next to the +New button.

  3. Select Purchase order from the menu.

    Image showing Purchase order selected from the New menu

  4. Enter information into the purchase order fields.

    Fields in purchase orders explained

  5. Save or approve.

    Save and approve options in purchase orders explained

Fields in purchase orders explained

This section provides guidance and tips on the purchase order fields.

Not all fields are compulsory. The only fields you need to complete so you can approve your purchase order are Contact, Date, Order number and Description. The rest of the fields help you keep track of your purchase order and improve communication with your supplier.

Purchase order header fields explained

Image showing purchase order header fields

Purchase order line fields explained

Image showing purchase order line fields

Purchase order delivery address options explained

Xero lets you choose a purchase order delivery address. To see the delivery address options, click on Delivery Address in your opened purchase order. Select from one of your organisation's addresses or add a different address if required.

Image showing options for delivery address.

  • + Add new address
  • Xero lets you create multiple delivery addresses which you can label. Enter address details and delivery instructions for a new delivery address for your organisation. Xero will save this new address and make it available on future purchase orders.

  • + Add one-off address
  • Enter address details and delivery instructions to apply to this purchase order only.

  • + Search from contacts
  • Select a contact if, for example, you want to send the ordered items directly to a customer. If no address is held for the contact, enter their address details and Xero will save them to the contact record.

    Video  Video: Purchase order delivery addresses in Xero accounting software (0:43)

    Save and approve options in purchase orders explained

    Xero has several save options and several approve options for purchase orders.

    Create a draft purchase order by selecting one of the save options

    1. Click the arrow next to the Save button.

    2. Select a save option from the menu.

    Image showing save menu

    All save options save your purchase order as a draft, however, if you select Save & submit for approval, your purchase order will be included in the Awaiting Approval status panel on the Purchases dashboard.
    Purchases dashboard

    Complete a purchase order by selecting one of the approve options

    1. Click the arrow next to the Approve button.

    2. Select an approve option from the menu.

    Image showing approve options