How to Receive Inventory in QuickBooks

QuickBooks allows users to receive the inventory without or with bill in QuickBooks Desktop, once the purchase order is recorded. By recording the inventory which is received as well as corresponding bill if provided, helps in updating the quantity for every item as well what is payable to vendor.

1. Inventory Recording with Bill

This option can be used if items are received by you as well as corresponding bill of those items.

  • Go to Home page and from the drop-down select the Receive Inventory also choose the Receive Inventory with Bill.
  • Now on the window of Enter Bills, which appears:
    • Select vendor name from the available drop-down
    • Click on Yes, in order to receive the purchase order of a bill
    • Select the PO, a correct one and then click on OK
    • Review information present on Bill. Keep in mind that except Memo field, remaining fields which were filled in the PO are moved to Bill
    • Then click on Save and Close
  • Once you are sure that you can pay the bill now proceed towards Pay Bills

2. Inventory Receiving without the Bill

This option can be used, in case items are received by you but you haven’t received the bill yet from vendor. This will lead to the creation of Item receipt, which will increase the inventory asset account of yours and also the account payable.

  • Go to Home screen and from the drop-down select Receive Inventory and select Receive Inventory without a bill.
  • Now on the window of Item receipts, which will appear:
    • Select vendor name from the given drop-down
    • Click on Yes, in order to ensure that purchase order is received for bill
    • Select OK by selecting the PO, which is correct
    • Make sure you carefully review the Item Receipt and information present on it. Keep in mind that except Memo field and of the field that was filled on PO, is moved to Item receipt
    • Then select the Save and Close
  • As soon as the bills are received for inventory, proceed towards entering the bills for Inventory

3. Making the Payments

When the bill arrived for merchandise, which is already bee recorded for the Item receipt.

This procedure will be used by you to pay it:

  • Click on Vendors| Enter Bill for Received Items, by doing this window of Select Item Receipt will open up
  • Choose the vendor and then select correct Item Receipt
  • Then tap on the box, present adjacent to the, Use the item receipt date for the bill date, in case you are willing to match the same with the inventory availability date
  • Click on OK, screen of Enter Bills will open up, you can easily process it the same way you handle other bills

Make sure that you same inventory item is not recorded twice.

4. Adding the Inventory to QuickBooks

Undoubtedly managing and tacking inventory is the task which takes lots of time, but an important one. With inventory managed properly you will be able to keep a track of the products in stock and ensure that all your customers are served properly.

  1. You can enable the inventory tracking in QuickBooks by tapping on the Edit present at the toolbar’s top and then clicking on Preferences present in drop-down list. Then go to the box’s left-hand side of the list and tap on Items and Inventory. After that tap on the tab of Company Preferences, so that your options are indicated. Do not forget to put a check mark on Inventory and purchase orders are active, you have freedom to choose whether a warning should be displayed regarding the duplicate purchase order numbers, in case you are having sufficient inventory to sell. After that tap on OK.
  2. Get the record on inventory item created by tapping on List, present in main menu and then from drop-down menu select the Item List. Now at Item List box’s bottom tap on Item and after that on New, in order to get the new inventory record added. Now select Inventory Part from the given options and then get the information filled, for example purchase information, cost, item as well as part number, and other required information. Once you are done then tap on OK.
  3. Get the item added to inventory. Go to top main menu and tap on Vendors and then click on Vendor Center. In order to get the already paid inventory entered, tap on New Transactions and then on Received Items. In case payment is not yet made by you then tap on Receive Items and Enter Bill, in order to get the time added and for generating the bill. Now go to drop-down list and select the time which you re willing to add and after that get the needed information entered, for example: cost, quantity and description. In case you are having a bill that is related with the item, then check the box of Billable. After you are done tap on Save and Close, or if in case you have more items to add then tap on Save and New.

Issues faced by the Users

  • How the inventory is received from the Purchase Orders?
  • How the inventory is received from the vendor who has no PO and also been added to the inventory?
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