cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

We purchase trailers for resale. Some trailers we pay for at time of receipt

We currently put the invoice account to Inventory Asset. But, then we add the trailers to inventory, which also goes to inventory asset. Therefore, my inventory asset is being overstated.
5 Comments
Highlighted
Level 15

We purchase trailers for resale. Some trailers we pay for at time of receipt

you are using inventory asset improperly.

 

create the inventory item for the newly purchased trailer

then enter the bill for the newly purchased trailer and in the item details portion list the inventory item, qty and amount, save

 

You may have to turn on Purchase orders and item details in company settings first

Highlighted
Level 1

We purchase trailers for resale. Some trailers we pay for at time of receipt

To be certain, I need to stock the items into inventory, then create a PO for those items and add them as the Item Details, correct? When I create the bill, will it allow me to attach the PO to the payment?  Also, if I'm financing the inventory with an outside finance company, how do I enter that liability after creating the PO?

Highlighted
QuickBooks Team

We purchase trailers for resale. Some trailers we pay for at time of receipt

Allow me to assist you further, midtexllc.

 

Yes, correct, you'll have to add the trailers as inventory items. Then, create a Purchase Order (PO), add the item in the Item details.

 

I've included the steps below for reference:

 

Here's how to create inventory items:

  1. Turn on inventory tracking
  2. From the Sales menu, select Products and Services.
  3. Click New, then select Inventory.
  4. Enter the necessary details.
  5. Click Save and close.

 

Then, we can now create a PO.

  1. Turn on purchase order.
  2. From the + New icon, select Purchase order.
  3. Select the name of the vendor.
  4. On the Item details section, select the inventory item.
  5. Enter the other details.
  6. Once done, click Save and close.

 

As for the payment, you'll have to open the PO to Copy it to the Bill. This way, you'll be able to link the payment to the item. Here's how:

  1. Go to the Expenses menu and then select Expenses.
  2. Locate the PO you created, then click to open.
  3. On the right side of the screen, click Copy to Bill.
  4. Once done, select Save and close.

 

To record the liability, let's create a liability account. I'll guide you how:

  1. Go to the Accounting menu and then select Chart of Accounts.
  2. Click New.
  3. Select the Account Type and Detail Type.
  4. Enter the name on the Name field.
  5. Click on Save and close.

 

Once done, you can now enter the liability.

 

Additionally, I've added an article that'll help you see the status of your inventory, the best sellers, the cost of goods, and more. This way, you'll be able to keep track of your items: Use Reports To See Your Sales And Inventory Status.

 

Keep us updated if you have other concerns in managing your QuickBooks transactions by clicking the Reply button. This helps us assist you on time.

Highlighted
Level 1

We purchase trailers for resale. Some trailers we pay for at time of receipt

Your response way helpful, thank you.  I have been entering inventory & I have the liability account setup.  I feel confident in entering inventory, creating the po, creating the bill & paying for the purchased inventory.

 

Can you tell me how to tie the PO to the liability? I entered the inventory, created the po and created the bill.  How do I show that bill as "paid" and increase my liability account?

Highlighted
QuickBooks Team

We purchase trailers for resale. Some trailers we pay for at time of receipt

Thanks for getting back to us, @midtexllc.

 

To show the bill as paid and increase your liability account, you can follow the steps given by my colleague @CharleneMae_F. To open the Purchase Order (PO) to link it to the bill. Then, followed by creating a liability account so you can enter it.

 

Also, I encourage checking our Help articles page to learn some tips and tricks in managing your QBO account. From there, you can read great articles that can guide you through the steps by steps process.

 

Stay in touch with us if you have other questions. We're always here to help. Take care!

Need to get in touch?

Contact us