Processing bills for Online purchases

CaptureIT · ‎August 25, 2022

Hi, I'm new to QuickBooks.

I purchased IT software and licenses which I include in my sale to my clients. The purchases are made Online using my debit card.

How do I process this in QuickBooks? Do I create a bill and then process the payment immediately afterwards?

Also, which accounts should this affect? I created an inventory account called IT consumables for this, but when I process the bill, the purchases account gets debited.

I hope someone can assist.

Thank you.

MaryLandT · ‎August 25, 2022

I'm glad you've asked this question, CaptureIT.

Entering an expense without a purchase order won't increase the inventory. Since you've entered an expense, you need to manually adjust the quantity on hand.

Here's how:

Click + New.
Select Stock Qty Adjustment.
Enter the Adjustment Date.
In the Stock adjustment account drop-down, select the appropriate account.
Select the products in the Product field.
For each item, enter either a new quantity or a change in quantity.
In the Memo field, enter the details about the adjustment.
When you're done, click Save and close.

Aside from this, you also need to use the Item details section when creating an expense. Just make sure the IT consumables account as the Income account of the product.

If you don't want to manually adjust the inventory each time you receive an item, you need to create a purchase order. Then, add purchase orders to expenses, bills, or cheques to increase the inventory.

In addition to this, QuickBooks tells you when it’s time to restock. You can order stock right in QuickBooks. Then, track what you receive from suppliers and what’s still on order. When you do, the quantity on hand automatically increases by the number of items you receive.

That being said, you can browse these articles to learn when to restock. And, access reports to instantly see your best sellers, what’s on hand, cost of goods, and more.

Get back to me if you have additional questions about recording purchases in QuickBooks. I'm always around to help you.

View solution in original post

LollyNino_C · ‎August 25, 2022

Thank you for posting here in the Community, @CaptureIT.

I'll walk you through creating an expense transaction to record your online purchase.

You can directly record the purchase as an expense in QuickBooks Online(QBO).

Here's how:

Go to + New, then select Expense.
Under the Payee field, choose the supplier.
For the Payment account field, select the account you used to pay for the expense.
In the Payment date field, enter the date for the expense.
From the Payment method field, choose how you paid for the expense.
For the Category details section, enter the expense information. In the Category dropdown, select the expense account you use to track expense transactions. Then enter a description.
Enter the Amount and VAT.
Click Save and close.

I recommend consulting an accountant for further guidance regarding the account you can use to avoid messing up your books in QBO.

You can also check some information to get started with QuickBooks Online. It provides helpful tips about the available features.

You can always get back to me by clicking the Reply button below if you need additional assistance recording expenses in QuickBooks Online. Have a great day.

CaptureIT · ‎August 25, 2022

Thank you so much for these helpful tips!

Just a question - If it is inventory that I purchased online, will doing it this way increase my inventory quantity on hand? Or is there a different way that I need to do it to increase my inventory quantity?

MaryLandT · ‎August 25, 2022

I'm glad you've asked this question, CaptureIT.

Entering an expense without a purchase order won't increase the inventory. Since you've entered an expense, you need to manually adjust the quantity on hand.

Here's how:

Click + New.
Select Stock Qty Adjustment.
Enter the Adjustment Date.
In the Stock adjustment account drop-down, select the appropriate account.
Select the products in the Product field.
For each item, enter either a new quantity or a change in quantity.
In the Memo field, enter the details about the adjustment.
When you're done, click Save and close.

Aside from this, you also need to use the Item details section when creating an expense. Just make sure the IT consumables account as the Income account of the product.

If you don't want to manually adjust the inventory each time you receive an item, you need to create a purchase order. Then, add purchase orders to expenses, bills, or cheques to increase the inventory.

In addition to this, QuickBooks tells you when it’s time to restock. You can order stock right in QuickBooks. Then, track what you receive from suppliers and what’s still on order. When you do, the quantity on hand automatically increases by the number of items you receive.

That being said, you can browse these articles to learn when to restock. And, access reports to instantly see your best sellers, what’s on hand, cost of goods, and more.

Get back to me if you have additional questions about recording purchases in QuickBooks. I'm always around to help you.

CaptureIT · ‎August 29, 2022

Thank you so much :)

MJoy_D · ‎August 29, 2022

You're welcome, @CaptureIT.

It's our pleasure to help.

If you have further questions about your QuickBooks account, the Community is always here to help. Have a great rest of the day!

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Processing bills for Online purchases