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Level 1

Recording inventory purchases

My client has received many product purchases this year but had never entered the inventory into Quickbooks until April 24th.  The purchases made in Jan-March (did not use POs) were recorded as an Expense.  Should I correct that or just leave it in the expense account?  I will be recording future purchases using POs moving forward.  Also, What subaccounts should I have for COGS and Inventory Assets for recording Vendor discounts on the purchases (at the time of purchase) and shipping fees? 

 

Thank you,

Laura Harkness

2 Comments 2
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QuickBooks Team

Recording inventory purchases

Good evening, @Laura Harkness

 

Thanks for posting your question here. 

 

In QuickBooks Desktop, purchase orders (PO) are non-posting entries, so they will require the expense type transaction to record the actual purchase. 

 

Workflows vary from business to business, so I recommend consulting with an accountant to ensure which sub-accounts to record the Cost Of Goods and assets in. This way, your books will be accurate. 

 

Also, for more information about PO's in QuickBooks Desktop, you can check out this article: Create purchase orders in QuickBooks Desktop

 

Feel free to comment below if you have any more questions or concerns. Take care!

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Level 12

Recording inventory purchases

@Laura Harkness 

Create all items with zero on hand. Then you can Receive Inventory or enter Purchase Orders / Bills to add quantity to the Item. This will tie to your payment for your Inventory with ease.

https://quickbooks.intuit.com/learn-support/en-us/item-receipts/receive-inventory/00/201307

 

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