Payroll Purchase Order Setup and Calculation ChecklistA payroll purchase order is a payroll calculation type that creates a purchase order for the remaining contract balances and entries in the selected batches of pay period entries. With the payroll purchase order, the purchase order is posted to Accounts Payable and the encumbrances from the purchase order are posted to General Ledger. To see what is left of the budget for the salary and benefit expense accounts, calculate and update a payroll purchase order before printing the financial reports from General Ledger each month.