How do I enter a bill from a vendor for an inventory item before I receive the items?

Thank you!  I'll give that a go.

Hi,
When I can find the process for QB Desktop? I buy a vendor and received invoice from them when they dispatch the goods, the transit is 15 - 30 days. The invoice is credit.

Thanks a lot.

Alfredo

Thanks for joining in on the thread, Alfredo_R.

If your scenario is the same with the initial customer who posted the question, the items were paid partially or in full. Since you haven't received the items physically, we can follow Rustler's suggestion.

We can record the payment you've made affecting the Accounts Payable account. Here's how to do it:

1. Click Banking at the top menu and select Write Checks.
2. Selectthe BANK ACCOUNT and the vendor.
3. Enter the Date and other necessary details.
4. Click the Expenses tab and select Accounts Payable in the ACCOUNT column.
5. Enter the payment you've made in the AMOUNT column.
6. Click Save & Close.

Once you received the items, you can already create the bills:

1. Click Vendors at the top menu and select Enter Bills.
2. Select the Vendor and enter the Date.
3. Enter the necessary details and go to the Items tab.
4. Enter the inventory item you received.
5. Click Save & Close.

When paying the bill, we can apply the available credit. This credit comes from the Check we created earlier.

1. Click Vendors at the top menu and select Pay Bills.
2. Mark the bill you want to pay.
3. Click the Set Credits button under the DISCOUNT & CREDIT INFORMATION FOR HIGHLIGHTED BILL section.
4. In the Discount and Credits window, go to the Credits tab.
5. Mark the available credit and click Done.
6. After entering reviewing the details, you can already click Pay Selected Bills.

You can also use these links for reference when managing your bills:

• Accounts Payable workflows in QuickBooks Desktop
• Enter bills in QuickBooks Desktop
• Enter bills against inventory

If you want to clarify something or have additional queries regarding the process, please feel free to get back to us. We'd be glad to further assist you until we get to the bottom of this. Have a great day!

Hi James,

thanks for your response. I will detail the 2 process in our importations:

1. We receive the final digital invoice with credit 60 days from the vendor. In same moment the vendor dispatch the articles from warehouse. The transit for articles is 15 - 30 days. We need register the bill when we received it. Then, when articles arrive we upgrade in inventory.

2. It is similar, only that, we not have credit and we need pay a variable % advance depend the vendor.

Thanks for help.

Alfredo

Thanks for posting back here, @Alfredo_R.

My colleague is right. You need first to record the payment by creating a check. In QuickBooks Desktop, you use regular checks to pay for a fixed asset, inventory and non-inventory part, service, other charges, and any expense you track. 

After creating the check, enter the bill once you receive the items. You may also check this article for the detailed process: Enter bills in QuickBooks Desktop.

Lastly, after you record what you owe your vendors, you can go to the Pay Bills window to settle your payables. If you received a discount or credit from a vendor, you apply it to your bill payment to reduce your total payable.

You can also directly pay your vendor bills in QuickBooks. It also records your payment automatically so your reports are accurate.

Don't hesitate to leave a comment down below if you have other concerns. I'll be more than happy to help you. Have a pleasant day.

But,

what happen with the credit bills with articles in transit? How can I registre the bills without have the articles on hand?

Thanks,

Alfredo

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@Rubielyn_J wrote:

Thanks for posting back here, @Alfredo_R.

 

My colleague is right. You need first to record the payment by creating a check. In QuickBooks Desktop, you use regular checks to pay for a fixed asset, inventory and non-inventory part, service, other charges, and any expense you track. 

 

After creating the check, enter the bill once you receive the items. You may also check this article for the detailed process: Enter bills in QuickBooks Desktop.

 

Lastly, after you record what you owe your vendors, you can go to the Pay Bills window to settle your payables. If you received a discount or credit from a vendor, you apply it to your bill payment to reduce your total payable.

 

You can also directly pay your vendor bills in QuickBooks. It also records your payment automatically so your reports are accurate.

 

Don't hesitate to leave a comment down below if you have other concerns. I'll be more than happy to help you. Have a pleasant day.

---

@ Rustler,

In a previous post you mention "in QBO if you enter a bill ,that stocks the item,  QBO does not have the same feature set as desktop, which allows for that."

I am running QB Desktop.  We purchase items from overseas.  We receive the invoice 1-2 weeks before we receive the inventory.  Can I enter the bill when I receive the invoice, then edit when we receive the product to make sure we actually receive all the items.  

It gets confusing to have to "hold" bills to enter until the product arrives.  

Thanks - AMG

We also purchase goods from overseas.  We get the invoice 1-2 weeks before product arrives in our warehouse.  Is there a way to enter the bill once we receive it, then enter inventory against that once the product arrives.  We want to keep track of open invoices, but we won't pay the bill until all product has been received at the warehouse.

Thanks - AMG

Does the inital payment just go into accounts payable because that is where it will show up as a credit with the pay bills screen?  It seems like it should be a receivable..

Hello there, @ndamo.

Once we create a bill payment, the program will not transfer the amount to the A/P account. It will deduct the amount of your A/P instead.

I also encourage reading our Reconciliation Guide to help keep your QuickBooks accounts accurate.

In case you need to track your vendor expenses and accounts payable, we can customize your vendor reports based on your business needs.

If I can be of any additional assistance, please don't hesitate to insert a reply in the comment section. Stay safe and healthy.

Dear @AMG02 

I am dealing with the same problem - I wanted to have the bills in the system (So that I can track the AP), but at the same time I can't put it to the inventory as separate products, as well as I can't put it to any expense account, as it would distort P&L. Maybe my solution can be helpful also for you: I have a created the account 'Goods on the Way' and I also put it on the same account types as the 'Inventory Assets' are - Other Current Assets/Inventory. So it is staying in the Balance Sheet, but it's still clear to me, that it's only on the way.

Monika

These solutions are far too complicated.

Create a service item that posts to a temporary inventory account, e.g., inventory in transit, so the bill amount can be recorded, and post the expenses where they belong.

Once the inventory is actually received, access the PO from the bill, this can be done even after the bill is paid.

If I am using QB desktop, have created a PO for a service or goods and received an invoice before the service is provided or good delivered, how do you record the invoice against the PO before items or service are delivered?

Good morning, @TFH3. 

It's great to see a new face here in the Community. Thanks for chiming in on this thread. 

I recommend consulting with your accountant to be sure of which route to go. They'll be able to give you the best advice based on how you run your business. 

Keep us updated on how the conversation goes with your accountant. I'm only a post away if you need me again. Have a great day! 

@MtnMoon - Exactly!  Almost everyone gets their Invoices emailed to them as soon as stuff ships, so this must be a problem for almost every single business.

The way it's set up, it looks like QB are stuck in the days when all invoices were posted out, and the goods sometimes arrived before the invoice did - but, those days are far behind us now.  The issue is that we have to now hold a bill until the goods arrive and enter it then - which has caused us a number of problems.

It's further proof that people that write software have no idea how people actually use it out in the real world.  QB is written for accountants, not the front-line people that enter orders and have to order & track inventory.
I submitted a similar request on their form on "Send Feedback Online" a couple of years ago - and nothing came of it...

I've been with QuickBooks Desktop for around 15 years now, but getting so frustrated with it's lack of basic functionality and does not meet the actual needs of my simple buy and resell type business.  I'm sure that there must be many other businesses in exactly the same situation.

Curious to know how you believe an accountant would be able to give the best advise on this.  This strictly a software deficiency issue, nothing for an accountant to give advice on.