Setting Purchases and Vendors Preferences

Before you use the purchases and payments features of QuickBooks, you need to set some preferences to establish how the program will function. Some of these preferences might have been set when you used the EasyStep Interview, but it's worthwhile to examine the preferences that are in place and make sure you are taking advantage of all QuickBooks has to offer in this area.

Set Purchase Orders and Inventory Preferences

Select Preferences from the Edit menu.

Click the Purchases & Vendors icon.

Click the Company Preferences tab.

If you plan to use the inventory or purchase orders features in QuickBooks, check the Inventory And Purchase Orders Are Active box.

Check Warn About Duplicate Purchase Order Numbers to be warned that you are about to use a duplicate purchase order number.

Check the inventory warning box to receive a warning message when you try to issue an invoice for items not in your inventory.

Set Bills Preferences

Fill in the Bills Are Due field to indicate how many days after receiving a bill the bill is due.

Did You Know?

QuickBooks assumes bills are due in 10 days. Because some vendors offer a discount for bills paid within 10 days, QuickBooks sets the bill due date at 10 days and adds the bill to your reminder list at that time. If you typically pay bills in 30 days, enter 30 here, or whatever timeframe is standard for your company.

Check the warning box if you want to be told you have received a bill with a duplicate number from the same vendor.

Check the box if you typically take advantage of discounts and credits.

If you check the discounts and credits box, you must enter an account that will be credited with your discounts and credits.

Click OK.