Workflow for Purchasing Inventory items with a Credit Card

Hello, raes88.

I'm here to guide you about the right workflow when purchasing inventory items with a credit card.

The first step is to create a Purchase Order (PO). In case you haven't turned on your PO feature, follow the steps below:

1. Go to the Edit and select Preferences. 
2. Select Items & Inventory, then the Company Preferences tab.
3. Check the Inventory and purchase orders are active checkbox and select OK.

Then, record the vendor payment by creating a check for the vendor:

1. Go to the Banking menu, then select Write Checks.
2. Enter the vendor name, date, and payment amount.
3. Go to the Expenses tab. In the Account column, enter Accounts Payable.
4. In the Customer:Job column, select the drop-down, then choose the vendor name.
5. Click Save & Close.

After that, you copy the PO to Bill. This will include the items in your inventory.

To do that:

1. From the PO page, click on Copy to Bill.
2. Enter the information.
3. Click on Save and Close.

Finally, you can apply the prepayment to your bill. I'll show you how below:

1. Go to the Vendors menu, then select Pay Bills.
2. Highlight the bill you want to associate with the prepayment.
3. Select Set Credits.
4. The prepayment will display on the Set Credits screen. Make sure it is checked, then select Done.

For the complete process of recording vendor payments,  check out this article: Record vendor prepayments or deposits for prepaid parts or services.

You might also be interested to learn more about the Accounts Payable workflows used in QBDT: Accounts Payable workflows in QuickBooks Desktop.

Keep me posted for additional questions or other concerns. I'd be more than happy to help. Wishing you the best of luck.

Thank you for your reply. We typically pay by credit card, rather than check as you specified in your instructions.

On Step 2, would we just Enter Credit Card Charge and choose Accounts Payable for the vendor? If yes, than would anything else change?

Also I don't think this follows the EIR workflow. We do not want financial transactions to update the inventory count. We only want to manually update inventory using EIR > Receive Inventory. We do not want entering a bill to impact inventory counts.

Could you please update the Workflow instructions based on using a Credit Card to Purchase Inventory and receive the items using Enhanced Inventory Receiving?

Thanks for coming back and adding more details, raes88.

When using the Enhanced Inventory Receiving (EIR), you’ll have to enter two separate transactions to receive and pay the items.

• An item receipt to receive items
• A bill to pay for the items

Input these entries in any order. You can still increase inventory quantities and pay for items in one step with checks and credit card charges.

Once the feature is turned on, bills don't increase inventory quantities. This means that QuickBooks has to create an item receipt for every bill that included items. This increases the number of transactions in your company file.

Since you’ll be using a credit card, create a bill first, and then pay it using the appropriate card. Here’s how:

1. Tap the Vendors menu at the top menu bar to select Enter Bills.
2. Then, fill in the field boxes with the appropriate information.
3. Click the Save icon.
4. Next, hit the Pay Bill menu in the upper right to open the Select Bills to be paid page.
5. Tick the box of the transaction you’re working on.
6. Go to the Method section and click the drop-down to select Credit Card.
7. In the Account section, make sure the appropriate card is selected.
8. Press the Pay Selected Bills menu and follow the on-screen instructions to complete the process.

Let me share this guide to learn more about how the EIR feature works: Turn on Enhanced Inventory Receiving (EIR).

Aside from that, we have built-in resources that cover all the details about Enhanced Inventory Receiving. Follow these steps to access them.

1. Click on the Help icon at the top menu bar to select QuickBooks Desktop Help F1.
2. In the Have a Question window, type Enhanced Inventory Receiving.
3. This will display a list of related articles.
4. From there, click the link to view more details.

If you have any clarifications or questions, click the Reply button and post a comment. I’ll get back to answer them for you. Have a great day ahead.