Inventory - shipping 1 item to a vendor and they add something to it and ship it back and it becomes a new part number

Hello there, @CROGERS1. I've got your back, and I'll share some insights on how purchase order works here in QuickBooks Desktop (QBDT), so you can get through this and complete your tasks.

QuickBooks won't let you input a negative amount when creating a purchase order. You can continue adding a positive quantity for Item B, which will leave a difference because of the cost of the coating. With this, it'll increase your item B. Since you're unable to enter a negative amount, I recommend an inventory adjustment to decrease the quantity on hand of your item A.

See this article to learn more about inventory adjustment in QBDT: Adjust your inventory quantity or value in QuickBooks Desktop.

Additionally, here's an article in case you'd like to update your items: Add, edit, and delete items.

You can also check this page to know more about the money in and out of your business in QBDT: Track your cash flow in QuickBooks Desktop.

Our door is open 24/7 in case you need further assistance with this, @CROGERS1. You can also post here again if you need help performing specific tasks in QuickBooks. I'll be more than happy to help you out again. Take care, and have a great weekend.

Hi @Kurt_M!

Thanks for the response!  From the time I posted the question, I came up with somewhat of a solution that would work (I think).  I created a service item called "Epoxy" and put the associated GL to go to Cost of Goods Sold..... since it will get to that point eventually.  I then created the PO to the vendor for the Epoxy Coating.  I will then do an inventory adjustment to -500 Item A and +500 Item B.  That should work shouldn't it??  I don't think it would work to do the PO for Item B only since it is for the whole cost of the item (including the epoxy coating) - the PO needs to only be for the coating itself (not including the actual product) ... ? - TGIF!!

Quickbooks was stumped by my question when I called them.

I'm glad to have you back in this thread, CROGERS1.

Your inventory adjustment should work. If you want other options or need assistance with the solution you're currently using, I recommend consulting your accountant. They may have other methods you can use to have an accurate inventory record in QuickBooks.

In addition to this, I'm adding this article to help track purchase orders: Learn about the Accounts Payable (A/P) workflows you can use in QuickBooks Desktop. It'll tell you what to record next after entering the transaction.

Let us know if you need more help by commenting below. I'll be around to provide the information that you need.