Purchase orders - Online view with option to convert to Quote
Purchase Orders - ability for the suppliers that you send the Purchase Order, to view the document online and have the option to import the Purchase Order to Quotes and Sales Invoices.
The Purchase order area of Xero feels a bit underdeveloped at the moment. However, one strong step would be to allow Purchase orders sent by Company A from their Xero account to be transferred to Company B's Xero Sales area at the click of a button (giving an option of Quote or direct to sales invoice).
This is already set up on the Sale side, where Company A sends an Sales invoice to Company B and Company B can add it to their draft bills directly. Creating a similar flow from Purchase Order to Sales Invoice/Quote would be a logical step.
Rebecca Johnson
shared this idea
Hi there, we appreciate your suggestion. It's a thoughtful idea that touches on a key part of the procurement process. We understand that the current method of emailing PDFs and relying on suppliers to recreate the information on their side requires some manual work.
An online view of purchase orders, along with the ability for suppliers to convert those into a quote or invoice in Xero, would help make this a much smoother experience for everyone involved.
At the moment in Xero, purchase orders can be converted into bills, which you can then send to suppliers, and quotes can be converted into invoices to be sent to customers. However, there isn’t a way for suppliers to view a purchase order online and import it into their organisation as a Quote.
This idea is currently in the Gaining Support phase, so we’re keeping a close eye on feedback and interest from the community. We’ll continue to update this thread as things progress.
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Rebecca Johnson
commented
With reference to the response given by Anis Anuar on 24 September 2025.
Suggesting that Xero users raise a bill and send that to a supplier is incorrect tax record keeping unless there is a legal "self billing agreement" in place. (see https://www.gov.uk/guidance/self-billing-notice-70062 for guidance)
Raising a bill when you haven't received supporting documentation creates a the impression that a "legal" business tax deductible and VATable transaction has occurred.
In the absence of a Self Billing agreement this is basically not legal. Having a "Bill" item on Xero does not prove that the Supplier has supplied you with the goods and services listed, or that the VAT stated has been paid over to HMRC by the supplier.
The primary most important part of business cost/expense records are the documents from the suppliers which confirm what was supplied, who supplied them, where the supply was made to enable the business to explain why that expense is tax deductible or VAT recoverable.
In the event of an HMRC enquiry, HMRC will ask for the primary documentation. This may also occur Due Dilligence on a business sale or investment activity.