In QuickBooks Desktop Enterprise, Enhanced Inventory Receiving or EIR separates Item Receipts from Bills and creates a new process for receiving and paying Items.
|Important: You can NOT turn off EIR once turned on. Create a backup of your company file before following the steps in this article. Run a test using a copy of your file and weigh if it works with your business process. If your company file is too big, consider condensing your file.|
Answer the following questions. If you answered "Yes" to any of these, EIR might be beneficial for your business.
Inventory Offset Account is a liability account created by QuickBooks Desktop when you turn on EIR. When Bills and Item Receipts are entered, the amount for these transactions are cleared from the Offset account.
QuickBooks Desktop creates the following Journal Entry when you enter an Item Receipt:
|Debit||Inventory Asset Account|
|Credit||Inventory Offset Account|
QuickBooks Desktop creates the following Journal Entry when you enter a Bill:
|Debit||Inventory Offset Account|
Because of the way QuickBooks Desktop creates these transactions after you turn on EIR, common reports may not look the way they used to.
Example: Act. Cost shows 0.00 in Job Profitability Detail report in a company file after turning EIR on.
With EIR turned on, the item used in creating bills is associated with Inventory Offset Account (Type: Other Current Liability) instead of the account that you used when you set up the item (Expense or Income Account). The default filter of Job Profitability Detail report is Account: All income/expense and Name: . Thus, adding or changing the Filter “Account” to Inventory Offset Account gives the right amount for Act. Cost column.
There are two ways to receive and pay inventory when EIR is off.
After turning EIR on, you have to record two transactions in any order:
|Reminder: This process only applies to Bills. You can still increase your inventory quantities and pay for items in one step using Checks and Credit Card.|