Receive inventory with an Item receipt

Learn how to receive inventory with or without a Bill in QuickBooks Online.

You can receive inventory with or without a Bill after you record a Purchase order. Recording the inventory received and the corresponding Bill, if given, updates the quantity on hand for each item and the amount payable to the supplier.

Switch from Bills to Item receipts to quickly update your inventory

Use Item receipts instead of Bills if you received the items but the supplier didn't provide the Bill yet. This increases your Inventory Asset account only. Bills will no longer update the quantity on hand.

1. Go to Settings and select Account and settings.
2. Select the Sales tab.
3. Select the edit icon in the Products and services section.
4. From the Inventory receiving method dropdown ▼, select Item receipts.
5. Read the instructions, then select Switch and save to confirm.
6. Select Save, then select Done.

Note: Once Item receipts are turned on, they can’t be turned off. If you need help, please contact our support team.

Receive inventory without a Bill

Pro Tip: To maintain accurate records, ensure the Item receipt matches the Purchase order and is linked to the correct supplier Bill.

If you got the items but the seller didn't give you the Bill yet, you can make an Item receipt. This will increase your Inventory Asset and Accounts Payable (A/P) accounts.

Step 1: Create an Item receipt

You can view received quantities on the Purchase order.

1. Follow this link to complete the steps in product
2. Select New item receipt.
   Note: If you are adding it for the first time, select Receive items.
3. Select a Supplier from the dropdown ▼.
4. From the Add items section, select Add on the Purchase order you want to add.
   Note: If you don't have a Purchase order, enter the details manually in the Item details section.
5. Select Save and close.

Step 2: Enter the Bill when you receive it from your supplier

The Purchase order will be closed only when the Bill is created. This can’t be undone. The Cost of Goods Sold (COGS) will come from the Item receipt, even if there's a linked Bill.

1. Select + New or + Create.
2. Select Bill.
3. Select a Supplier from the dropdown ▼.
4. From the Suggested transactions section, select Add to link a Purchase order or an Item receipt.
   Note: Select the appropriate option in case you see a pop-up for a partially received Purchase Order.
5. If necessary, change the dates, amounts, or any other details in the Bill.
6. Enter the supplier's Terms.
7. Select Save and close.

Related links

• Create and send a Purchase order.

If you received your items from a corresponding Purchase order, there are two ways you can track what you receive from a supplier:

• Create a Bill from the Purchase order if you’ll pay your supplier later.
• Create a Cheque or an Expense from the Purchase order if you paid your supplier on the spot.