How am I able to invoice a sales order when the item I put on a purchase order has not been received yet?

Thanks for checking in with us, MCsandhills.

Allow me to help and provide you with some information about creating an invoice for the items that have not been received yet in QuickBooks Desktop.

You can still make an invoice for those items that have not been received in QuickBooks. However, this will cause a negative in your inventory, but it will eventually return to normal once you receive the items.

Let me show you how to create an invoice from a sales order.

Here's how:

1. In the Sales Order screen, click Create Invoice.
2. Select Create an invoice for selected items.
3. Hit OK.
   
   

You may find this article helpful: https://quickbooks.intuit.com/community/Income-and-expenses/Create-an-invoice-in-QuickBooks-Desktop/....

This article is a good reference: Receive inventory.

Drop me a reply below if you have any other concerns about invoices and sales orders in QuickBooks Desktop. I'd love to help.

I appreciate the information.  I should have said why am I able to.  These items are not items in my inventory and since they are non-inventory part numbers, they do not create a negative inventory item.  In order for me to print accurate packing slip, meaning for non-inventory items I have purchased and received to show as to be picked, I need to invoice the sales order and then print a pick or packing slip.  Since we have more than one person in the system, I was hoping to find a way so that I wouldn't accidentally invoice something that has not been received yet.  Thank you.

Hello,

I have some questions about how Quickbooks post the COGS to expense if the inventory item has received.  I understand it would cause a negative inventory qty until the item is received.  Will the cost of good sold get posted to the P&L after the item is received?  What happens if the invoice takes place on December 30th but the item is not received until January 30?  Would this scenario affect the end of year cost/expense reporting?

Background:  We sell equipment.  We invoice customers and receive the deposit before the equipment is manufacture and ship.

Scott

Thanks for joining this thread, Seecott,

I can tell how QuickBooks post the COGS to expense if the inventory item has been received.

Once you create an invoice, QuickBooks will automatically post the entry on your Profit and Loss report under COGS. However, the result of the entry will depend on if you run the report on a cash or accrual basis. 

Feel free to read through this article: Differentiate Cash and Accrual basis to learn how accounting methods affects your reports.

Inventory COGS is only affected when you sell inventory items on invoices. You can open the invoice and run the Transaction Journal Report to see how QuickBooks debits or credits the accounts for the sales. I've added a sample screenshot below for your visual guide.

I've also added the Inventory assets and cost of goods sold tracking link for more details on how to track inventory.

Stay in touch with me by commenting below. Just tag my name and I'll get back to you.

Thank you and stay safe!

Mary, thank you for the reply and info.  I will check out the invoice transaction journal.

My concern is not understanding exactly the expected outcome in Quickbooks.  My example scenario, I create an inventory item which has 0 qty.   I generate a $3,000 invoice on December with the new item to the customer to collect the revenue.  (at this point, Cost is zero since Quickbooks doesn't know the average cost of the new item).  If I run the P&L, it will have a profit of  $3,000.  A month later in January, when I receive the inventory item for $2,000 cost, the cost is added to the item average cost.

Questions:

- Does Quickbooks goes back and apply the cost of $2,000 in December?  Or will the cost refect in January P&L?

Thank you for connecting with the Community once again, Seecott. QuickBooks will calculate the average cost on the date of the items received with the cost. The Inventory Valuation Summary Report would be the best course of action to show you how QuickBooks got the item's average cost.

1. Go the Report tab, and then Inventory.
2. Choose the Inventory Valuation report.
3. Adjust the dates to All.
4. Double-click the Inventory item in question.

I have attached some useful articles, which show how to receive inventory and ways to understand how inventory works in Quickbooks Desktop.

• How to receive and record Inventory
• Understanding Inventory

If you have any questions or need more clarification, please don't hesitate to let me know. Simply use the Reply button below, and we will be happy to help. Take care and enjoy the rest of your evening.