old item receipt and no vendor to pay

Novice338 · ‎October 14, 2021

We have an item receipt from 2019. The supplier is gone. How should I handle this item? It already hit AP and Inventory Asset when the item receipt was created. I can create a bill with the same date so that it does not affect AP and Inventory Asset then issue a credit memo against an other income account. Is this the best way to handle this?

Archie_B · ‎October 14, 2021

Hello there, Novice338.

That's correct. Since a bill replaces an item receipt, you can enter a bill for the item receipt with the exact date item and amount.

After that, you'll only have a bill instead of an item receipt. Then, you can create a credit and apply it to the bill.

To create the credit:

From the Vendor menu, select Enter Bills.
Select the Credit radio button to account for the return of goods.
Enter the Vendor name.
Select the Expenses tab and enter the Accounts on the original bill.
Enter the amount.
Click on Save and Close.

You can now apply these credits to the vendor bill.

Here's how:

From the Vendor menu, select Pay Bills.
Check the Deposit that matches the Vendor cheque amount.
Select Set Credits and apply the Bill Credit you created earlier then select Done.
Select Pay Selected Bills, then select Done.

I also recommend consulting an accountant for the best option to handle your item receipts.

Here's an article for more tips and related articles that will surely help you with your future tasks: Expenses and vendors

Let us know if you still have other questions or clarifications about item receipts. I'll be here to help. Keep safe.

View solution in original post

Archie_B · ‎October 14, 2021

Hello there, Novice338.

That's correct. Since a bill replaces an item receipt, you can enter a bill for the item receipt with the exact date item and amount.

After that, you'll only have a bill instead of an item receipt. Then, you can create a credit and apply it to the bill.

To create the credit:

From the Vendor menu, select Enter Bills.
Select the Credit radio button to account for the return of goods.
Enter the Vendor name.
Select the Expenses tab and enter the Accounts on the original bill.
Enter the amount.
Click on Save and Close.

You can now apply these credits to the vendor bill.

Here's how:

From the Vendor menu, select Pay Bills.
Check the Deposit that matches the Vendor cheque amount.
Select Set Credits and apply the Bill Credit you created earlier then select Done.
Select Pay Selected Bills, then select Done.

I also recommend consulting an accountant for the best option to handle your item receipts.

Here's an article for more tips and related articles that will surely help you with your future tasks: Expenses and vendors

Let us know if you still have other questions or clarifications about item receipts. I'll be here to help. Keep safe.

Novice338 · ‎October 14, 2021

Thanks, that is what I did. Just was not sure if there is another option.

Charies_M · ‎October 14, 2021

I appreciate you for coming back, Novice338.

The solution shared by Archie_B is already the best option to handle the item receipt from the year 2019 in QuickBooks Desktop (QBDT).

Learn more about paying bills by visiting this article: Pay bills in QuickBooks Desktop.

To review the bills you've paid, you can run the Custom Transaction Detail report and filter it to show bills.

To do so, please follow these steps:

Go to Reports.
Select Custom Reports.
Choose Transaction Detail.
In the Display tab, set the date range. Then, mark Paid Date and Amount Paid.
Go to Filters.
Enter Transaction Type in the Search Filters field.
Highlight the Transaction Type and choose Multiple Transaction Types in the drop-down arrow.
Select Payment, Bill, and Bill Payment. Then, click on OK.
Click on OK to close the Modify Report window.

For further guidance in customizing a report, you can also check out this article: Create, access, and modify reports.

For tips and related articles in the future about the "How Do I" steps in QuickBooks Desktop, visit our QuickBooks Community help website for reference.

You can always get back to me here in the Community if you have any other questions. I'll be more than happy to assists you.

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old item receipt and no vendor to pay