Receiving inventory WITHOUT using purchase orders in QBO + and recording supplier invoice (CANADA)

RicBruce · ‎January 01, 2024

Hi All,

I am struggling a bit to understand the best steps for me in receiving inventory.

We just started use QBO Plus and plan to use it for inventory tracking for products that we resell.

We buy all products electronically through online vendors without using POs as it seems very redundant, so i have not enabled it in QBO+.

In the past, We place the order, pay by credit card, the supplier provides sales order or invoice shortly afterward via email or in online account. We have no suppliers with credit terms, all is by business credit card.

Can anyone help with the workflow question marks here . . . I am a bit confused on the getting the items into inventory with the current cost . . .

1.) Place order with supplier

2.) Pay by credit card

3.) Goods received at my location

4.) Receive goods in QBO+ . . .

How do i do this . . through inventory adjustment? If so what should the entry look like, what account should be use?

5.) Record supplier invoice (already paid by credit card)

How do i do this, via journal entry? If so what should debit /credit sides of entry look like?

Note: all of our expenditures on credit card get charged to account we named "Credit Card Payable", and we clear the credit card balance of course monthly.

Any Help Appreciated... I have read many posts but they all seem to point to use purchase orders which seems like creating work after the fact . . . .

Ric

Trish_T · ‎January 02, 2024

HI RicBruce,

It's a pleasure to see you in Community. Welcome! QuickBooks Online provides the features you need, so you can accomplish your daily bookkeeping goals with confidence. You can record and track your inventory, from the invoices you receive. I'd be glad to assist!

Based on the details you've provided, I suggest creating an Expense. When doing so, you'll be able to enter the associated products directly from the expense form, by selecting +Add new from the ▼ dropdown menu, under products/services listed under the Items list. In addition, you can add the supplier directly on the expense form, rather than doing it ahead of time, by clicking on +Add new, in the Payee field. Here are a couple of valuable guides to assist you;

Enter and manage expenses in QuickBooks Online

Add and manage suppliers in QuickBooks Online

If you have any other questions, feel free to reach out. We are always happy to help!

RicBruce · ‎January 25, 2024

Thanks Trish this works fine!

Alex M · ‎January 25, 2024

Hi there RicBruce.

I'm happy to hear that you got the answer you were looking to find. If you have any other questions, feel free to reach out here.

Clara Cleverence

Hey Ric, let's get right into it. You got a workflow in mind, but the tricky part is figuring out how to handle inventory without POs. If you're using QuickBooks Online Plus, receiving inventory without a purchase oder isn't that tough. Since you already have electronic transactions sorted out, we can keep it easy.

When you recieve the goods, head to "products and services" in qbo and pick the product. Click on "adjust quantity on hand" to update stock. Make sure you got the cost info ready, 'cause that'll hit your COGS and inventory value.

For the supplier's invoice, since you've paid by credit card, a journal entry makes sense. You'd debit your "inventory" account and credit "credit card payable" - keeping it clear until you've paid that off monthly. Skipping POs can make it easier, but they do help with forecasting, so maybe consider them down the line.

It's not as simple as it seems sometimes, so don't hesitate to test it out and see what works best. I once had to tweak this approach cause every business is a bit different. Good luck with it!

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Receiving inventory WITHOUT using purchase orders in QBO + and recording supplier invoice (CANADA)