Purchase order and bill

aiyub · ‎October 19, 2018

We are a manufacturer of frozen foods. we want to add finished product as an inventory. For this, I would create a purchase order and convert to bill. This would then ask to make the payment for that bill to the supplier and this would also reflect the balance sheet with an outstanding creditor and current liability.

We want to add finished product to the inventory so we can make sales invoices.

any idea how we can create purchase orders but not to reflect this in balance sheet?

Thanks

Rustler · ‎October 19, 2018

@ Alyub

A PO is non posting, so it does nothing to the accounting.

This is accounting, a bill posts to accounts payable and what ever account or item in inventory is listed on the bill. There is no way around that.

I do not know if international versions always have inventory, but if you do then good, turn it on (qty tracking) in company settings and insure that in company settings>expenses>bills & expenses turn on the items table and purchase orders.

Then when you enter an expense or bill, about half way down the left side is a title "item Details" click that and a table opens where you can select the item, qty and item total cost for purchasing inventory

View solution in original post

Rustler · ‎October 19, 2018

@ Alyub

A PO is non posting, so it does nothing to the accounting.

This is accounting, a bill posts to accounts payable and what ever account or item in inventory is listed on the bill. There is no way around that.

I do not know if international versions always have inventory, but if you do then good, turn it on (qty tracking) in company settings and insure that in company settings>expenses>bills & expenses turn on the items table and purchase orders.

Then when you enter an expense or bill, about half way down the left side is a title "item Details" click that and a table opens where you can select the item, qty and item total cost for purchasing inventory

aiyub · ‎October 19, 2018

Hi, Thanks for the response. If the PO is non posting then it can work for us however to receive the inventory, you have convert the PO into bill. if we can receive the inventory without converting PO then it could really work for us.

Rustler · ‎October 19, 2018

you can not receive inventory in QBO without either a bill, or a payment to the vendor for those items

aida · ‎October 19, 2018

Hi, I use QBO Plus. Is it possible to receive inventory partially (already paid in full) for a PO/ Bill? In other words, I have an order of 5,000 units. 1,000 are being shipped via air, the other 4,000 by sea. Can I reflect the 1,000 as being received into inventory and waiting on the 4,000?

Rustler · ‎October 19, 2018

Not unless you enter a bill for the 1,000
QBO does not have receive only the way desktop does

support7 · ‎April 06, 2019

I am having a difficult time understanding QBO concept of a PO. When a company provides a vendor with a PO it is committing to the service or product they offered. It is an obligation. Now.. we would include terms to this PO. Like 50% to start and the remainder at the completion. I want to show this obligation in the report and what was paid to these obligations. I would also like to include the two bills (50% and remainder) against the PO.. This is standard operations for most companies... How do i do this

Catherine_B · ‎April 08, 2019

Hi there, support7.

Purchase Order is a non-posting transaction. You need to create a bill first so you can make a payment. When you create a purchase order you can link it to a bill. If your vendor paid 50% of the purchase, you can make a payment from the bill and modify the line item having the 50% payment. To pay the remainder, you can go back to the bill and create a payment again.

Here's an article that you can read through about purchase order. I also have provided a few screenshots as you reference.

Let me know if you need further assistance. I'm here to help!

nealf · ‎August 20, 2019

My challenge is a bit different - I just converted from QB Enterprise Desktop to QB online. We purchase from China and prepay for all goods. On the Enterprise version, when we made the payment, the funds sent are placed into a Prepaid Inventory Account. When the product is received, the bill is listed with $0.00 cost and the inventory is received and the inventory assist account is debited and the prepaid inventory account is credited so it all balances. I don't see that option available in QB Online - how do I receive the inventory and not create a payable and how do I relieve the Prepaid Inventory account?

ShiellaGraceA · ‎August 20, 2019

Hi nealf,

You can create the inventory asset and prepaid inventory accounts in QuickBooks Online. Then, create a bill with quantity and zero rates or cost. Let me guide you through of the detailed steps.

Click Gear.
Click Products and Services.
Edit the inventory item. Under Inventory asset account, select your preferred account or click the drop-down to Add new.
Under Expense account, choose your "prepaid inventory account".
Click Save and close.

Once done, go to Create (+), then Bill to receive the item.

Please check out these articles for more information:

You might also want to visit our page for future help: Inventory and projects.

Don't hesitate to comment anytime if you have other questions.

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Purchase order and bill