Returned items on PO

Welcome to the QuickBooks Community, joneill1186.

Thank you for providing detailed information. It would be my pleasure to help you with any questions you may have regarding the returned items.

In QuickBooks Desktop, there are two Accounts Payable (A/P) workflows you can use. You can choose either of the two depending on what suits your business process.

Workflow one:

Workflow two:

Based on what you've said above regarding the returned inventory items, you may need to record a Deposit and a Bill Credit to link them. For the detailed instructions, you can visit this article (scroll down to Scenario 2):

Record a vendor refund in QuickBooks Desktop.

Please be sure to let me know if you need additional clarification about the process, and I'll be more than happy to help you accomplish it.

So even though we return the 5 widgets, we still want our PO to remain open until we receive the PO complete with "good widgets". That is the problem that I am having is how to take off received items from the purchase order. 

Good day, Joneill1186.

You can delete the bill, create another one from the purchase order, then add 45 in the QTY column. This way, QuickBooks will recognize you only received 45 widgets only.

First, here's how to delete:

1. Open the bill.
2. Press Ctrl + D on your keyboard.
3. The Delete transaction window will appear, just click OK.

Next, recreate the bill. Here's how:

1. Click Vendors, then choose Enter Bills.
2. Choose the vendor.
3. The Open POs Exist window will appear, just click Yes.
4. In the Open Purchase Orders window, choose the purchase order, then click OK.
5. In the QTY column, enter 45, then click Save & Close.

Please check the screenshots for your guidance.

When you open the purchase order, it will show 45 widgets as received and 5 as back ordered. I've got a screenshot for your reference.

Let us know if you need more help. We're just around. 

@AlcaeusF 

Your graphic for what you call two work flows shows the exact same thing for both

and has nothing to do with the OP question

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@joneill1186 wrote:

Hi All! 

 

We create a PO for 50 widgets. We receive the 50 widgets. We "entered a bill against inventory" for 50 widgets.  We find out that 5 of them are bad. We return 5 of the widgets. We receive credit for the widgets.  

In our old system we "unreceived" the widgets and matched that up with the vendor credit. The PO showed that we were still due 5 more widgets. The new widgets come in and we receive the 5 widgets. We "enter a bill against inventory" for those 5 widgets.

Is there a way to do something like this in Quickbooks? 

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You do not unreceive what you did in fact receive

enter the bill for the full qty, that stocks the item

5 are bad, so do a vendor credit memo in QB (enter bill, at the top left set it to credit, list the item and qty on th item tab and save.  (in real life you send them back or not depends on what the vendor wants).  That vendor credit memo set a vendor credit for the 5 returned

when you get the 5 in, enter the bill and then in pay bills apply the credit to the bill, save the zero dollar bill.  That puts them back in stock

I think this is the way we are probably going to have to do this. The reason to "unreceive" the 5 from the PO is to show that the PO is still open (good widget qty not fulfilled yet). 

We have a person who "receives items". If there is a return (even though we are getting replacement items)  the PO shows closed and there is nothing to receive. If there is no way to do this, then we will just go the route you said, but it would be nice to have the PO remain open until we get all of the items.