What is a Purchase Order in QuickBooks?

A Purchase Order in QuickBooks serves as a document that a business creates to order goods or services from a vendor. It details what the business intends to purchase, including quantities and prices, thus facilitating the procurement process. The correct answer, highlighting that a purchase order can be created using estimates, underscores the importance of estimates in the purchasing process. Estimates allow a business to provide potential costs and quantities to customers or vendors before finalizing the purchase. This connection is crucial because businesses often convert estimates into Purchase Orders when they decide to proceed with a purchase based on the initial estimated costs. It ensures that there is a clear and formal agreement on what is being ordered, helping to avoid any misunderstandings later on.

The other options do not accurately describe the role of a Purchase Order in QuickBooks. The first option does not align with the function of a purchase order, which is focused on purchases from vendors, not customers. The second option describes a request for payment, which pertains to invoicing rather than ordering. Lastly, a record of customer balances is relevant to accounts receivable but does not pertain to the specifics of a Purchase Order, emphasizing its distinct role in the purchasing workflow.