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 vendor.

Switch from Bills to Item Receipts to quickly update your stock

Use Item Receipts instead of Bills if you received the items but the vendor 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 Edit ✏️ in the Products & Services section.
4. Switch on Use item receipts to update quantity.
5. Select Save, then Done. 

Note: Once item receipts are enabled, 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 vendor 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 account and accounts payable.

Step 1: Create an item receipt

You can view received quantities on the Purchase Order. 

1. Go to Inventory, then select Create item receipt.
2. Select the name of the vendor.
3. Select the purchase order, then OK.
   Note: If you don't have a purchase order, enter the items in the detail area.
4. Select Save.

Step 2: Enter the bill when you receive it from your vendor

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, then Bill.
2. Enter the vendor's name.
3. Select the item receipt for the bill, then select OK.
4. If necessary, change the date shown and the amount in the bill.
5. Enter the vendor's terms.
6. Select Save.

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 vendor:

• Create a bill from the purchase order if you’ll pay your vendor later.
• Create a check or an expense from the purchase order if you paid your vendor on the spot.