Purchase Orders - Mark billed after draft bill approval
I believe it would be possible to change the current behaviour where a Purchase Order is automatically marked as Billed when it is copied to a Draft Bill.
I think it would be more accurate if the Purchase Order remained open and was only marked as Billed once the related bill has been approved and the full Purchase Order value has been billed.
The current process can be misleading, as a Purchase Order is shown as billed even though the bill is still in draft status and may be amended, partially billed, or not approved at all.
Marking the Purchase Order as billed only after the bill is approved for the full Purchase Order amount would provide a more accurate reflection of its actual status and improve visibility for users managing purchasing workflows.
Karolina Brodacka
shared this idea
Thank you for sharing your idea about preventing a purchase order from being marked as Billed while the related bill is still in Draft.
While Xero will still mark a purchase order as Billed once all of its quantities have been billed and the bill is approved, you can now partially bill a purchase order instead. This means you only bill the items or quantities you’ve received, while any remaining quantities stay on the purchase order and it remains open for future billing.
To create a partial bill:
- Go to Purchases → Purchase orders.
- Open the approved purchase order.
- Select Create bill.
- Adjust the quantities on the bill to match what you’ve received.
- Select Create bill.
- Review and approve the draft bill when it’s ready.
The purchase order will retain the remaining quantities until the bill is approved, then update to show what has been billed and what remains. You can repeat these steps for future deliveries against the same purchase order.
For more information, see Create bills from purchase orders. 😊
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Steph Wilson
commented
We create draft bills for cashflow and changing the PO to billed instantly means having to go back and un-bill the PO.