How do purchase orders, receives and bills work in Zoho Inventory?

In Zoho Inventory, a purchase order is created under Purchases, Purchase Orders and becomes Issued once sent to the vendor. When goods arrive, click Receive on the order to record a purchase receive, which updates stock on hand. When the vendor's invoice comes in, convert the receive or the order to a bill and record the payment against it.

How do you create a purchase order?

1. Go to Purchases, then Purchase Orders, and click + New (or the quick create + icon next to the Purchase Orders tab).
2. Choose the Vendor. The PO number can be generated for you or typed in.
3. Set the date, Expected Delivery Date and shipment preference.
4. Add items with quantity, rate and tax, and any discount.
5. Under Deliver To, choose your organization, or a customer for a drop shipment.
6. Click Save to keep it as a draft, or send it to the vendor.

You can also start a purchase order from a vendor's record in Contacts, using the New Transaction menu.

What do the purchase order statuses mean?

Draft and Issued orders can be edited. Zoho's help warns to email the edited order to the vendor afterwards, or the vendor may fill the old version. An order can be deleted only while it is Draft or Issued and has no bills or receives.

How do you receive the goods?

A purchase receive records what the vendor actually delivered, and Zoho uses receives to calculate stock on hand.

1. Open the purchase order under Purchases, Purchase Orders.
2. Click Receive.
3. Enter the Purchase Receive# and Receive Date, and the quantity of each item that arrived.
4. Choose Save as In Transit if the goods are on the way, or Save as Received from the dropdown if they are in hand.

Partial deliveries are fine. Record only what arrived; the order shows Partially Received until the rest comes in.

How do you turn the order into a bill?

A bill records what you owe the vendor. There are two ways to create one from the order:

• From a receive. On the purchase order, open the Receives section and click Convert to Bill on the receive. You are billed only for what was received.
• From the order. On an Issued purchase order, click More, then Convert to Bill.

Save the bill as a draft or as open. A draft bill has no effect on accounts or inventory. When you pay, open the bill and click Record Payment; it then shows Paid or Partially Paid. A bill created without a purchase order can be marked as received so the stock still goes up.

What does a good weekly routine look like?

• Check the Low Stock filter in Items and the quantity ordered in the Inventory Summary report.
• Create one purchase order per vendor and send it, so it moves to Issued.
• Record a receive the day goods arrive, not when the bill comes.
• Bill from the receive so you pay only for what arrived.
• Review open orders in the Purchase Order Details report and chase anything past its expected delivery date.

Can ReorderOwl help build the purchase orders?

Yes. ReorderOwl reads your Zoho Inventory exports, works out what to reorder from each vendor, and, when you ask, builds the purchase orders with items, quantities and costs. Today you enter them in Zoho Inventory or send them to the vendor; creating them in Zoho for you is coming soon. It works in ChatGPT today, and Claude setup is coming shortly. See ReorderOwl for Zoho Inventory.

Frequently asked questions

Does a purchase order change stock in Zoho Inventory?

No. Stock goes up when you record a purchase receive, or when a bill created without an order is marked as received.

Can I receive part of a purchase order?

Yes. Enter only the quantities that arrived; the order shows Partially Received until the rest is received.

Should I bill from the order or from the receive?

Billing from the receive charges only what arrived, which avoids paying for short shipments.

Can I delete an issued purchase order?

Only while it is Draft or Issued and has no bills or receives attached.

Sources

1. Managing Purchase Orders, Zoho Inventory Help, accessed 2026-10-01
2. Purchase receives, Zoho Inventory Help, accessed 2026-10-01
3. Bills, Zoho Inventory Help, accessed 2026-10-01
4. Purchase order - Recording Receives, Zoho Inventory Knowledge Base, accessed 2026-10-01