I added a new item to item list. I directly input the item inventory, should have used PO and bill to receive inventory.How do I correctly tie this inventory to payment?

Wailele · ‎April 23, 2020

ReymondO · ‎April 24, 2020

Thanks for getting back to us, @Wailele.

Allow me to help you fix this concern. When creating an inventory item, let's make sure that the quantity on hand is zero. This will allow you to delete it if you need to.

If this item has a quantity on hand other than zero, we can create an inventory adjustment to zero out its quantity on hand. This way, we can make sure that your inventory asset account balance will match to your reports. Here's how:

First, let's create a separate account in your chart of accounts to track your adjustments.

Click Company and select Chart of Accounts.
Click the Account drop-down, then select New.
From the Other Account Types drop-down, click Cost of Goods Sold.
Name this account “Inventory Adjustments”, and then Save and Close.

Then, you can now create an inventory adjustment. Let me show you how:

Go to List, and select Item List.
Click Activities, then select Adjust Quantity/Value on Hand.
Click Find & Select Items and check the box for the inventory item you wanted to adjust.
Click Add Selected Items, then enter the account you've created for the adjustment in the Adjustment Account drop-down.
Enter the new quantity amount in the NEW QUANTITY column and click Save & Close.

Once done, you can also make this item as inactive to remove this on the Item List. Simply go to List and select Item List. Then, right-click the item and select Make Item Inactive.

After this, you can now follow the Accounts Payable workflows you can use in QuickBooks Desktop. Just follow the steps provided in this article: Accounts Payable workflows in QuickBooks Desktop.

To make sure your inventory status is correct, you can check your inventory status reports. Here's how:

Go to Reports and select Inventory.
To check your product’s quantity, select the Inventory Stock Status by Item.
Look for the items you adjusted and make sure everything is correct.

That's it! Please let me know if there's anything else I can do to be of assistance. Have a great weekend!

View solution in original post

KlentB · ‎April 23, 2020

I'm here to help you in correcting this, Wailele.

Generally, we'll have to create a purchase order and receive the items, then enter your bills against the inventory if your business tracks the goods and services you order. Since you've directly received the item, we'll have to enter the appropriate bill against the inventory to record the corresponding payable for the item receipt. I'll guide you how:

Click the Home icon.
Select Enter Bills against Inventory to open the Select Item Receipt window.
From the Vendor drop-down, choose the correct vendor name.
To keep the original inventory availability date, select the Use Item receipt date for the bill date checkbox.
Select the item receipt that corresponds to your bill.
If there are multiple item receipts, we'll have to convert each bill separately.
Click OK to convert the item receipt into a bill.

Once done, we can use the Pay Bills function to settle your payables.

I recommend visiting this link to see the complete list of A/P workflows and other vendor-related transactions: Accounts Payable workflows in QuickBooks Desktop.

In case you need to keep track keep track of your inventory and the revenues for the items you sell, you can refer to this article in customizing item reports.

I'll be right here to continue helping if you have other inventory-related questions or concerns. As always, assistance is just one comment away.

Wailele · ‎April 24, 2020

Hello,

Thank you for responding to my question.

I have tried your suggestion however I have no item receipt created for the input of the inventory that I entered when I created the new item listing.This is part of the problem I created by entering the item inventory directly when I created the item. I have the inventory in QB but no way to tie the inventory to the payment for that inventory.

Ashley H · ‎April 24, 2020

Hello there, @Wailele.

I recommend deleting the Inventory Item then recreating it with zero on hand. After doing this, then you can Receive Inventory or enter Purchase Orders / Bills to add quantity to the Item. This will tie to your payment for your Inventory with ease.

Let me know if you have further questions or concerns. I'll be here. Have a beautiful day!

Wailele · ‎April 24, 2020

Aloha Ashley,

Thank you for responding.

Quick Books states I cannot delete an inventory item if it has been used in a transaction.

The only transaction this item has been used in was when I created it, no invoice or anything, very confusing.

I tried to delete it when I realized what I had done but it was too late, damage done by the entry itself being done incorrectly on my part. Still trying to figure this out and correct the error. Any further help would be appreciated.

Wailele · ‎April 24, 2020

Aloha Ashley

Quick Books states I cannot delete an inventory item if it has been used in a transaction.

I have not used the item in any transaction other than creating it, no invoice or sales receipt, very confusing.

Any further suggestions would be appreciated.

ReymondO · ‎April 24, 2020

Thanks for getting back to us, @Wailele.

Allow me to help you fix this concern. When creating an inventory item, let's make sure that the quantity on hand is zero. This will allow you to delete it if you need to.

If this item has a quantity on hand other than zero, we can create an inventory adjustment to zero out its quantity on hand. This way, we can make sure that your inventory asset account balance will match to your reports. Here's how:

First, let's create a separate account in your chart of accounts to track your adjustments.

Click Company and select Chart of Accounts.
Click the Account drop-down, then select New.
From the Other Account Types drop-down, click Cost of Goods Sold.
Name this account “Inventory Adjustments”, and then Save and Close.

Then, you can now create an inventory adjustment. Let me show you how:

Go to List, and select Item List.
Click Activities, then select Adjust Quantity/Value on Hand.
Click Find & Select Items and check the box for the inventory item you wanted to adjust.
Click Add Selected Items, then enter the account you've created for the adjustment in the Adjustment Account drop-down.
Enter the new quantity amount in the NEW QUANTITY column and click Save & Close.

Once done, you can also make this item as inactive to remove this on the Item List. Simply go to List and select Item List. Then, right-click the item and select Make Item Inactive.

After this, you can now follow the Accounts Payable workflows you can use in QuickBooks Desktop. Just follow the steps provided in this article: Accounts Payable workflows in QuickBooks Desktop.

To make sure your inventory status is correct, you can check your inventory status reports. Here's how:

Go to Reports and select Inventory.
To check your product’s quantity, select the Inventory Stock Status by Item.
Look for the items you adjusted and make sure everything is correct.

That's it! Please let me know if there's anything else I can do to be of assistance. Have a great weekend!

Wailele · ‎April 26, 2020

Aloha ReymondO,

Thanks for responding to my question.

Your help worked and was appreciated! I can sleep sound tonight!

Mahalo

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I added a new item to item list. I directly input the item inventory, should have used PO and bill to receive inventory.How do I correctly tie this inventory to payment?