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Level 1

Inventory management

I have a small retail store. The problem that I have is that I sell items that is delivered in batches i.e. I order 1 box of cat food and receives 5 packages in the box which I sell separately. So if my stock level is down to 3 items and I create a Purchase order I need to order 1 items (box of 5). So when delivered I copy PO to Bill which automatically increase my stock levels. the problem is that it only increase the stock level by 1 instead of 5. I can't amend the qty before I copy to bill as that will increase the PO value incorrectly. 

 

I would appreciate any advise on how to deal with this. currently after I copied to bill I manually adjust quantity but it assigns it to stock shrinkage which is messing up my financial information.

 

Regards,

Danie

Solved
Best answer December 14, 2018

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Level 15

Inventory management

For this part, Yes, you control it: "I can't amend the qty before I copy to bill as that will increase the PO value incorrectly."

 

Of course you can and should change it on the Purchase Payment transaction, when things are not the same. Example: I order 10 and get 5. I don't put 10 on the bill; I change that to 5. Or, I ordered 10 and got 12, and am fine with that. The Bill or Check or Credit Card I make selecting, yes, this is fulfillment of the PO, has to be your Reality. The PO is a nonposting Planning tool. The purchase is the Real Event.

 

For you, only you know what this means. If you order Boxes from the supplier, and they know this is the retail box that is 5 to their own shipping carton, then you know you need to order 5 units as Boxes, and they will ship you one carton. The program doesn't control this. It's just your tool. You and your Suppliers control this.

 

You didn't tell us which program you are using. There are ways to manage Units of Measurement, such as One Carton = 5 Boxes, so that means you can manage that item with Either Unit of Measure. But you don't typically need that complexity. Just place on the order what you intend to buy and get. Then, show what you actually Purchased on the Purchase transaction (check or bill or credit card charge) because this is what puts it On Hand and in stock for this date.

View solution in original post

4 Comments
Highlighted
Level 15

Inventory management

For this part, Yes, you control it: "I can't amend the qty before I copy to bill as that will increase the PO value incorrectly."

 

Of course you can and should change it on the Purchase Payment transaction, when things are not the same. Example: I order 10 and get 5. I don't put 10 on the bill; I change that to 5. Or, I ordered 10 and got 12, and am fine with that. The Bill or Check or Credit Card I make selecting, yes, this is fulfillment of the PO, has to be your Reality. The PO is a nonposting Planning tool. The purchase is the Real Event.

 

For you, only you know what this means. If you order Boxes from the supplier, and they know this is the retail box that is 5 to their own shipping carton, then you know you need to order 5 units as Boxes, and they will ship you one carton. The program doesn't control this. It's just your tool. You and your Suppliers control this.

 

You didn't tell us which program you are using. There are ways to manage Units of Measurement, such as One Carton = 5 Boxes, so that means you can manage that item with Either Unit of Measure. But you don't typically need that complexity. Just place on the order what you intend to buy and get. Then, show what you actually Purchased on the Purchase transaction (check or bill or credit card charge) because this is what puts it On Hand and in stock for this date.

View solution in original post

Highlighted
Level 1

Inventory management

Thank you for your feedback. I am using QuickBooks Online Plus. I had a look and you are correct; I can increase the qty on the bill but then I have to manually amend the total value back to the original amount. I just hoped that this could be done as part of the purchase information. But this will help alot already. Have a nice day

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Level 1

Inventory management

This helped a lot for me as well, we are using Quickbooks Desktop and needed to know about the part about the units of measurement. Thank you! 

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Level 4

Inventory management

Hi Danie,
As you already know, you can manually change the quantity on the bill. However, if you want automatic unit conversions, you’re probably better off checking the QuickBooks App store for a 3rd party solution. There’s bound to be a tool that can help you make these conversions like Katana Smart Manufacturing Software has a feature that converts your PO items into the desired measure that you want to track your raw materials. However, it should be mentioned that this tool has been built specifically for manufacturers.

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