GRNI

Hi vhache,

Welcome to the QuickBooks Community! This is where our members comes together to share their knowledge and ideas. Picking the right accounts for your transactions is the corner stone of bookkeeping. I'd be happy to point you in the right direction for this.

Setting up accounts in QuickBooks Desktop is a quick process designed to help you keep your books accurate. When it comes to what accounts to make it's recommend that you reach out to your accountant as they are trained in where your transactions are tracked to. If you don't have an accountant no worries, we have just the tool for you. You can go to our find an accountant page to find one in your area that can help.

Once your accountant tells you what kind of accounts you need to track to you can make it in your Chart of Accounts by following these steps:

1. Go to the Lists menu, then select Chart of Accounts.
2. From the Account ▼dropdown, select New.
3. Select an account type, then select Continue.
4. Complete the account details.
5. Select Save & Close.

Feel free to reach out to us if you have any further questions and we'd be happy to help!

Hello @vhache ,

Unfortunately, there isn't really a way to do GRNI in QBD because the built-in Receive Items is inherently tied to the system A/P account.  The Receive Items form is basically a Bill form and simply allows you a way to acknowledge and record receipt of the items prior to receiving the vendor's invoice.  But it makes all the same accounting entries as though you had entered the invoice; all except for Bill Payments.  As I'm sure you've discovered, when a bill is marked as an item receipt only, there is no bill to show up in the Pay Bills function.

I agree with you that when you receive many of your goods ahead of the invoice, it would be a good thing to see them separated on the Balance Sheet.

The only suggestion I could make is that you create a custom report that shows you all your receipts for a day or a a week, and then make a JE to transfer a lump sum amount out of A/P and into the GRNI account.  Then, when the invoices are received from the vendors, make a reversing JE for the same.  It sounds like a PITA, but once you got into the routine of doing it, it wouldn't be too bad.  My suggestion:

1.  Create a Vendor called GRNI.

2.  Receive items against your PO's as you normally would, but put in an "E" in the tax column so there will be no tax implication yet.

3.  Create a Vendor called GRNI.

4.  Create a Custom Transaction Detail Report, filtering for Account Accounts Payable and Transaction Types Journal and Item Receipt and remove columns as necessary.  Use the appropriate date range you want to use on the report.  Re-name report appropriately and memorize.

5.  Create a JE.  When posting to Accounts Payable in a JE, the first line must always be Accounts Payable.  DR Accounts Payable account, tab over to Name column and enter your vendor name GRNI.  CR GRNI other liability account on second line. Memo could be something to the effect of "To account for GRNI".

6.  When you receive the vendor's invoice, go to Enter Bill for Received Items which will bring up your Item Receipt window for that bill.  Check off the Bill Received check-mark, and enter the proper tax code.

7.  Create a JE, CR Accounts Payable - GRNI vendor, and DR the GRNI other current liability account.  This is basically a reversal of the JE you did initially.  However, while the JE you did initially may account for several vendor's item receipts (the total amount that you took from your report), in this step, you would do one JE for each vendor invoice you receive as you may not receive all the vendor invoices included on your report on the same day or at the same time.

8.  You will note that each time an Item Receipt is converted to a Bill, that line will disappear from your report, while the amounts from the JE's will remain, showing the A/P amount going up and down, depending on what transpires with Item Receipts and Bills received from vendors.

Because you are basically following the normal procedure for recording an item receipt and then the bill, the financial entries attached to those documents are still going to be made to your G/L.  But your JE adjustments will temporarily relieve your A/P accumulated $ amount and send it to GRNI instead, then back again.I know these steps sound like a long process, but it really isn't once you get a routine in place.  It's basically taking the gross amount of your purchase, moving it to a "holding tank" called GRNI, and then moving it back to A/P once the invoice is received.  This way your Balance Sheet will display the correct $ amounts at any time that you pull a B/S report.

These are the types of hoops you must jump through to get what you want when the software just won't quite get you there.  I hope this doesn't sound too convoluted and will be a workable process for you.

Good luck!