Go to Purchases, then Purchase Orders, and click New Purchase Order. Select the vendor: their GSTIN, GST treatment, and billing details auto-fill. Add line items with item name, quantity, rate, and applicable GST rate. Set the expected delivery date and any special terms. Save and send the PO to the vendor by email directly from Zoho Books. The PO is now a formal commitment but has not yet affected your accounts or created a bill.
When goods are received, open the purchase order in Zoho Books. If the full quantity was received, click Convert to Bill. If only a partial quantity arrived, enter the received quantity for each line before converting. Zoho Books creates a bill for the received amount and marks the PO as “Partially Billed” for the open quantities. This prevents paying for goods not yet received and gives you a clear record of pending deliveries.
Three-way matching compares the purchase order (what you ordered), the delivery receipt (what you received), and the vendor bill (what you are being charged). Zoho Books supports two-way matching (PO to bill) natively. For full three-way matching, many businesses maintain a separate goods receipt record in Zoho Inventory and link it to the Zoho Books PO via the integration.
A purchase order in Zoho Books is a formal document sent to a vendor specifying items, quantities, agreed prices, and delivery terms before goods are received or the bill is raised. It creates a commitment without affecting your accounts until converted to a bill.
Open the purchase order and click Convert to Bill. Review quantities received and amounts. Save to create a bill pre-filled with PO details. Zoho Books links the bill to the PO so you can track ordered vs. billed quantities.
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