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Level 1

What to do when you have stock runs and products shipped at a later date, the stock runs are the ones billed yet we don't have it?

We have a company that makes our product and stores it there until ready to ship to us. So we get billed on a stock run (cases of product) and then we get billed (zero amount) for the products shipped to us. How do we go about doing this in QBO? We have tried using a case sku for the stock run and individual sku for the ship to us. This way we can see what our stock is there in cases and see what we have here in inventory as well with the individual skus. This creates a problem of not only have to do an inventory adjustment to remove the cases, but our COGS is showing as a zero dollar amount because of the blank bill. However if we use the individual skus on the stock run bill then we will show that we have that here with us when we do not. Is there any work around for this? I do not care if we are able to keep track of the inventory at their location, but inventory at our location is VERY important with the proper costing as well.

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QuickBooks Team

What to do when you have stock runs and products shipped at a later date, the stock runs are the ones billed yet we don't have it?

I appreciate the detailed information, Jmliles. It made me understand your concern clearly.

 

Creating a blank or zero bill will not affect COGS. This account is normally affected when you sell inventory items on invoices or sales receipts.

 

As what I've learned from your concern, I'd suggest creating a bill only when you receive the stocks or items. 

 

Or, you can create a purchase order. This is a form you send to your vendor to let them know the items you want to purchase. Then, create a bill from the purchase order when you receive the items. I'll share the reference on how to reorder inventory or supplies from vendors for more information. 

 

I'll also add the article on how to set up and track your inventory in QuickBooks Online as a future reference. 

 

As always, I'd suggest conferring with your accountant. They may provide a different idea that'll not affect any accounts or your inventory. 

 

Visit the Community anytime if you have other concerns. Don't hesitate to reach out to us. 

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Level 15

What to do when you have stock runs and products shipped at a later date, the stock runs are the ones billed yet we don't have it?

@jmliles 

 

QBO does not do unit of measure, especially multiple unit of measure. QBO is buy it sell it software.

 

Yes you do need to account for and track the product sitting at the production facility.

 

From what I understand, you pay for a production run that is package in cases, lets guess at 12 each per case.
then out of that production run they ship you x-number of cases for free and hold the rest waiting for you to ask for more to be sent.

 

with that in mind, you either sell by the case only, or you sell by each and by the case.

in QBO an inventory item is stocked as each. If you ONLY sell by the case, then a qty of one = one case.
BUT, if you sell by each (even if sometimes) then a qty of one = one each

 

Therefore, if you order a run of 20 cases with 12 each per case (and you sell both each and case), you stock 240 each.

create bundle item for the case, list the inventory item and qty of 12, and set it to not print all items - use that item only when you sell a case.

and use that inventory item when you sell by each.

 

When you enter the bill, you have to use the item details part of the transaction, that allows you to list the item, qty and total cost.  Doing that establishes the cost per item and qty on hand - then your cost per item will post to COGS when the item is sold as it should

 

If you do not have  the section for item table on your transactions, in company settings you turn on the items table and purchase orders. 

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Level 1

What to do when you have stock runs and products shipped at a later date, the stock runs are the ones billed yet we don't have it?

Kristine,

 

While I appreciate your reply you don't understand what is going on at all.

 

We have a PO for a stock run. The stock is made and we are billed for them making it. They store it at their facility until we are ready to receive the product. This could be months down the line. We cannot wait until product comes in to pay them as they have MADE the product already. 

 

When we are ready to receive the product they send a bill for that as well, but with a zero amount since we have already paid for this product. 

 

It DOES affect the COGS because when I pull a P&L it is showing a zero cost for these items.

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Level 1

What to do when you have stock runs and products shipped at a later date, the stock runs are the ones billed yet we don't have it?

Rustler,

 

Thanks for your response. We use the individual skus to bring in the product already and bundles for cases sold. That is not our issue. The issue is QBO is using our last bill for the individual sku as the cost of that item.

 

If we use our individual sku on the bill when we do the stock run then it will show that we have that in our inventory here which we do not. It is just what has been made. This is why we use separate skus when doing a stock run. That way we can keep a proper inventory count on what is here via the individual skus. 

 

However when doing this QBO pulls the cost of these individual items from the last bill, which in our case is a zero amount because we paid for the item when it was made not when it was shipped to us. THIS is our issue. We are not getting a proper P&L because of this.

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