Briton, the problem with the default arrangement regarding a separate Receiving document between a PO and the Bill is that if I receive in one location and pay from another I have a communication link missing. Using the "Create A Bill as the receiver instrument there is no way to know if that is a bill or a item receipt only. This can get confusing when the person posting the bill on arrival already sees a bill for that item. No it is confusing as to whether there is already a bill posted or if what the  poster is looking at is an already entered bill. If one person is doing everything from one location maybe that can be done somewhat satisfactorily but when multiple persons at various locations need to manipulate information (Isn't that what the QBO was all about in the first place) there is no accurate audit trail. In my opinion this violates even the most basic of accounting practices. It is time for a separate receiving report. 

Why is there not an option to receive inventory from a PO without having to enter it as a bill? For most businesses inventory is received and then a bill follows at a later date. To keep information in real time we need to be able to receive inventory and only enter the bill later on after it is received. The only option we see now is to wait to receive the inventory until we have the bill which is useless. Alternatively we could enter a "bill" as soon as the inventory is received but we will not have the vendor invoice number/date/etc. so that is a poor option as well. 

If I understand correctly the current QBO process is to enter a PO, then create a bill which receives the inventory and creates the inventory/AP entry. It should be a 3 step process: PO, then receive inventory, then create bill. Accounting wise the inventory receipt should increase your inventory and credit a temporary AP account such as "accrued payable". Then when the actual bill is received and posted it moves from accrued payable to A/P. 

Hi there, @joncraw4d. 

Thanks for taking the time to follow along with the thread and sharing your concerns. 

In QuickBooks Online, when the purchase order is created, the status is Open. Once your vendor accepts the purchase order, you can then add it to an expense or bill transaction in QuickBooks to make the transaction official. This keeps all the transactions connected and your accounts balanced. 

However, you can manually adjust an item's quantity without recording a purchase or sale to match what is in your account. To do this, you'll need to use the Inventory Adjustment feature to increase/receive what you need. 

Although this is our current process of receiving inventory in QuickBooks, I can see the importance of getting the feature needed that fits your business needs while handling inventory entries. For now, you can use the Feedback feature to send this idea directly to our Product Development Team. Our developers review each request and consider them for future updates. 

Here's how:

1. Sign in to QuickBooks.
2. Select the Gear icon at the top, then Feedback.
3. Enter your comments or product suggestions. Then select Next to submit feedback.

Please let me know if you have any additional questions or concerns. Take care! 

How do I receive only part of the inventory in a purchase order? 

Hi there, @MO50

Receiving only part of the inventory in a purchase order (PO) can be done with ease. I'd be glad to show you how.

You can accept inventory with an expense, bill, or check after you record a PO. Recording the items acquired and the corresponding vendor transaction updates the quantity on hand for each item.

Here's how:

1. Click on the + New button.
2. Select Expense, Check, or Bill. 
3. From the Payee dropdown, pick the vendor. This opens a window with their open purchase orders.
4. Select Add for the correct purchase order. This adds the items from the purchase order. They appear in the Item details section.
5. Adjust the quantity or amount for each line item to reflect the portion you received or plan to pay for.
   
6. Hit Save and close.

If you need to unlink a PO, check out this article for the detailed steps: Add purchase orders to expenses, bills, or checks in QuickBooks Online. On the same link, you'll find a write-up about when to use expenses or bills in QuickBooks Online.

You can always count on me if you need additional assistance and let me know on how these steps turn out. I'm just a post away. Have a great rest of your day!

You received inventory that was ordered last week, along with a bill for the inventory for $1,000 PLUS $150 in shipping charges. Explain the journal entry that is made and the accounts that are updated when you enter this inventory and bill into QuickBooks.

I can't find the Action on the purchase order created, can you help where to find it?

Welcome to the Community, JenSu.

The Action column mentioned in Kristine Mae's post is located on vendor profiles. After clicking a transaction's Drop-Down Arrow (▼) icon, you can then use its Copy to bill option.

You can also find a Copy to bill button when viewing a purchase order.

I've also included a detailed resource about working with purchase orders which may come in handy moving forward: Create & send purchase orders

Please feel welcome to send a reply if there's any additional questions. Have a lovely Wednesday!