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KevvyB
Level 1
posted
‎August 19, 2020 06:42 AM
last updated ‎October 05, 2020 9:15 PM

How to resolve inventory when you need to invoice the customer prior to processing the supplier invoice

Hi there

 

We are a trading business, that generally does not hold stock (and when we do so, it is only for a short period of time). As such we frequently process the customer invoice, prior to there being any stock on hand (as we have not yet received the supplier invoice). 

 

How best should we track our product sold (we would like to track profits by product), considering the cost of sale often looks like it is zero due to the fact we have not yet processed the supplier invoice?

 

Thanks

Kevin

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4 Comments 4
RaymondJayO
Moderator
Moderator
‎August 19, 2020 08:28 AM

How to resolve inventory when you need to invoice the customer prior to processing the supplier invoice

Hello there, @KevvyB, 

 

I'll provide the details regarding your concern. 

 

QuickBooks Online (QBO) uses the FIFO concept, which considers the first items you purchase as the first items you sell. The Cost of Sale is also likely to be zero since you process the invoice before receiving the inventory from your supplier. Here's a sample screenshot below: 

 

I'd suggest tracking your profits per product by creating an invoice after you've received the inventory from your supplier. Since your business has the other way around, it'd be best to consult your accountant. They can provide the appropriate workflow to ensure your inventory reports and books are accurate. 

 

Also, I recommend running the Sales by Product/Service Detail report to view all your sales transactions for your stock item (see the screenshot below). Just go to the Reports menu and enter its name in the Search box. For more information, visit this article: Check Your Sales And Inventory Status in QBO. 

 

Lastly, you can click the Customise button on the report to focus on the details that matter the most to you and your business. 

 

I'll be right here to help if you need further assistance. Keep safe always, and stay healthy. 

 

Best Regards, 

Raymond Jay

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Fiat Lux - ASIA
Level 15
‎August 19, 2020 07:49 PM

How to resolve inventory when you need to invoice the customer prior to processing the supplier invoice

@KevvyB 

Consider having an inventory management app with the back order feature to do so.

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KevvyB
Level 1
‎August 23, 2020 03:26 AM

How to resolve inventory when you need to invoice the customer prior to processing the supplier invoice

Thanks. Do you have any apps in mind?

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Fiat Lux - ASIA
Level 15
‎August 23, 2020 04:08 AM

How to resolve inventory when you need to invoice the customer prior to processing the supplier invoice

@KevvyB 

You may start exploring from these apps.

https://go.tradegecko.com/register?code=fiat-lux

https://www.zaperp.com/ref/25/

 

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