Recording a bill without inventory

It's good seeing you here in the Community, Paradise3!

I'll be sharing some steps in recording and paying a bill from your Purchase Order (PO) before you receive the items in QuickBooks Desktop (QBDT).

First off, using the expense tab, you'll need to create a temporary holding account and use Other Current Asset, then enter a name for that account.

Here's how:

1. Go to Company and select Chart of Account.
2. Click on Account dropdown, then choose New.
3. Select Other Account Types and choose Other Current Asset in the dropdown arrow.
4. Click Continue.
5. Name the account, then Save and Close.
6.  

Now, create a bill from your purchase order, then on the Items tab, make the quantity into 0 for all the items so you won't receive an inventory. After clearing, go to the expense tab and use the temporary account you created.

If you want to receive the item, you can go to the Vendor Center and locate the bill, then populate the proper quantity of the items you received. After that, you can now delete the temporary holding account.

In case you need to track your vendor expenses and accounts payable, we can customize your vendor reports based on your business needs.

Return to this post if you have other concerns about recording and paying your bills in QBDT. The Community is always here to help.