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How do i receive inventory from purchase orders

How do I receive inventory/create a bill for my purchase order when I get the inventory delivered?

Solved
Best answer 10-15-2018

Accepted Solutions
QuickBooks Team

Hello reggiesroast, Thanks for posting! I'd be pleased to...

Hello reggiesroast,

Thanks for posting!

I'd be pleased to help. Here's how to create a bill for your purchase order:

  1. On the purchase order created, click on the drop-down arrow under Action.
  2. Click Copy to bill.
  3. Click Save and close.
I have attached screenshots for your reference.

If you have other concerns, don't hesitate to let us know. Thanks again!


View solution in original post

16 Comments
QuickBooks Team

Hello reggiesroast, Thanks for posting! I'd be pleased to...

Hello reggiesroast,

Thanks for posting!

I'd be pleased to help. Here's how to create a bill for your purchase order:

  1. On the purchase order created, click on the drop-down arrow under Action.
  2. Click Copy to bill.
  3. Click Save and close.
I have attached screenshots for your reference.

If you have other concerns, don't hesitate to let us know. Thanks again!


View solution in original post

Established Community Backer ***

And before saving, insure the total amount per items orde...

And before saving, insure the total amount per items ordered equals the total of the bill received.  In the US, per the IRS that means you have to adjust the total amount per item by a portion of the shipping and/or taxes or any other charges you incurred, they are all part of item cost.
Established Community Backer ***

@ Kristene - something to consider for the future would b...

@ Kristene - something to consider for the future would be to use a screen shot showing inventory type items on a PO and Bill since that was the point of the question, might be more clear to a new user.
Not applicable

Thanks for answering. I have come over from the desktop v...

Thanks for answering. I have come over from the desktop version and find the online version A LOT less functional. Is there an upgrade/another version that works more like the desktop? It seems odd that you cant navigate straight from the PO, rather that you have to go into transactions....
QuickBooks Team

Hello reggiesroast, That's how QuickBooks Online was desi...

Hello reggiesroast,
That's how QuickBooks Online was designed. But your idea is great! What you can do is to send feedback to our product developers so that they can check on that feature. Just click on the Gear icon and choose Feedback. Thanks!
Established Community Backer ***

@ Reggie QBO is very very limited, if you are coming over...

@ Reggie
QBO is very very limited, if you are coming over from desktop, see this to check if the functions you relied on in desktop are even in QBO
a non partisan comparison of QBO vs QB desktop
<a rel="nofollow" target="_blank" href="http://onsale-apparel.com/Rustler/qbo-or-qbdt">http://onsale-apparel.com/Rustler/qbo-or-qbdt</a>
Not applicable

Hi Kristine How do I differentiate a stock item I have bo...

Hi Kristine
How do I differentiate a stock item I have bought for stock and the same stock item I sell to a customer.
In short. The same item is inventory that I sell to customers.
I'm using quickbooks online with bank feeds
( payment to supplier of inventory is already in the bank feed)
Frequent Explorer ***

Re: Thanks for answering. I have come over from the desktop v...

Agreed, QB Online stinks and is difficult to navigate, especially the Reports, compared to the Desktop version.  It is not user friendly and the naming of reports was changed (which makes it more difficult).  I'm not sure what the benefit is on QB Online v Desktop is but I much prefer the Desktop version.  

Frequent Contributor *

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

I am still unclear about when the inventory is updated and how we ensure that inventory corrections are made.

 

I understand that process as follows - please correct anything I have got wrong:

  1. We raise a PO in QBO and send to vendor.
  2. We raise a Bill to match one or more POs.
  3. Vendor makes full or partial shipments against each PO.
  4. We check packing slip against PO. Vendor may also notify on packing slip items unable to be fulfilled. Vendor may have issued some items short of or over the number we ordered. What action should we take in QBO at this stage for each of these variations?
  5. Vendor sends an invoice which may be for an entire PO or for one or more partial shipments. This includes shipping cost for items covered by that invoice.
  6. We add the shipping cost to the related Bill in QBO. Each Bill may end up with several lines for shipping cost.
  7. We pay the invoice and apply it to the Bill. Even when that vendor has completed all shipments for a PO, the Bill total may not match the total of all invoices (usually the total of all invoices will be less than the Bill total.

(Note that I have not included a reference to the situation where a packing slip is incorrect as obviously we talk to the vendor and sort out how to resolve it.)

 

Once we know that the vendor has finished issuing invoices against a PO and all invoices are paid, QBO still shows an outstanding amount due on each Bill. Presumably there is also a discrepancy between the inventory added in accordance with the Bill and the actual shipments received (on packing slips). How do we ensure in QBO that the inventory adjustment, the PO, the Bill and the goods received all match at the end?

 

Thanks in advance for any explanation and advice. This is causing a lot of stress because it is over 6 months since taking over the accounting for this and Bills are not being cleared and Inventory is going out of whack!

QuickBooks Team

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Hi @briton,

 

Allow me to clear things up for you and share how this process works.

 

Your inventory gets updated right after you mark a bill with the inventory items as paid. To ensure that its correctly updated, I suggest making changes to the bill you've created from the initial PO. Base your changes from the invoice your vendor sent you, including shipping costs.

 

With this, you won't have any issues with your inventory since the update will depend on the actual items you've received from your vendor. The bill will also close without any discrepancies since the total amount you paid for matches with the invoice you received.

 

Further details on inventory management by buying and selling products is in this article: Buying and selling inventory.

 

I'll be here to provide further assistance. Should you require it, drop me a comment below and I'll get back to you.

Frequent Contributor *

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Thanks Ryan.

 

So if I understand you correctly:

 

  1. We shouldn't create a Bill when a PO is raised, or when we get items delivered, but only each time we get an invoice (which is ALWAYS later than the shipment delivery).
  2. We can't use the system QBO provides of either (a) creating a Bill from a PO or (b) creating a new Bill and adding the POs which QBO offers from available ones. Those methods would only apply when we have a PO which is shipped to us completely filled and where the vendor's invoice shows the same items and quantities.

So unless we get a perfectly matched PO against deliveries and invoice, what you are saying is that we need to enter each item/quantity on an invoice in a newly created bill and merely annotate which PO it is a partial fulfillment of.

 

Did I understand your answer?

QuickBooks Team

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Thanks for getting back to us, @briton.

 

You can create a bill from the PO each time you receive a shipment according to inventory received. Used the Copy to Bill from the PO and reduce the QTY of items if you received partially delivered items, this way it will update the PO's open items.

 

Also, you can still use the feature as the PO in QuickBooks Online (QBO) will update each time you do a Copy to Bill and let you track how many inventories remained undelivered.

 

Once you received the invoice from the vendor, you can run the Purchase by Vendor Detail report to match the items that were billed and what was invoiced.

 

Here's how to run the report:

  1. Go to Reports from the left menu.
  2. Type in Purchase by Vendor Detail.
  3. Set the date and click Run report.

Also, just in case you want to adjust your inventory, please refer to this article for the detailed steps: How to Edit an Inventory Quantity Adjustment.

 

Let me know if you have other questions. I'm always here to help. Have a good day!

Not applicable

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

So, when you receive a PO and create a bill, the inventory is not added to the register until its paid?

Moderator

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Thanks for joining this conversation, DKolb.

 

To answer your question, when creating a bill from a purchase order (PO), the quantity of the item in that transaction will be added in the inventory (Products and Services) list automatically. It will also be posted in the expense and accounts payable account (AP). Once the bill is paid, that the time it will be posted in the bank's register.

 

For additional resources, consider checking out these articles:

 

 

Please reach out to me in the comment section below if you have any other issues or concerns. I'm always here to help. Have a great week!

Not applicable

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Thanks for the response! I am trying to figure out how to automatically add inventory received from a purchase order. Does QBO do that?

 

QuickBooks Team

Re: Hello reggiesroast, Thanks for posting! I'd be pleased to...

Good day, @davidkolb.

 

As of the moment, your inventory items from a purchase order won't automatically be added to your item's quantity on hand. This is because your purchase order is a non-posting transaction. Thus, it doesn't affect the quantity of your items and in any of your accounts.

 

With that being said, you can consider copying your inventory items from a purchase order to a vendor transaction once you received them. This way, QuickBooks will automatically add the quantity of your inventory items to your current inventory count. To do so:

  1. Go to the Plus icon.
  2. Under Vendors, select Expense, Check, or Bill.
  3. Select your vendor who sent you the purchase order.
  4. On the lest selection panel, find your purchase order.
  5. Select Add.
  6. Click Save and close.

Additionally, here's an article you can read to learn more about how you can add your purchase order to a vendor transaction: Apply a Purchase Order to a Vendor Transaction.

 

Lastly, I've also added this helpful article that'll guide you in identifying and finding your purchase order transaction: How to Run Purchase Order Reports?

 

If there's anything else that I can help you with, please let me know ion the comment section down below. I'll be always around ready to help.

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