Lesson 8-6: Receive Inventory From Vendor and Create A Bill – This free QuickBooks tutorial will show you how to receive inventory that was ordered from a vendor and create a bill for the related inventory to be paid according to the vendor’s payment terms. In the previous lesson, I showed you how to create a purchase order which was used to place an order for inventory. Now the inventory has arrived and we need to account for the inventory and create a bill based on the invoice that was received from the vendor. The invoice that was received from the vendor will be paid according to the vendor’s terms, which should be located on the invoice. When you receive inventory from a vendor, it is not considered an expense, it will be accounted for as an asset until it is sold. When a sale is made, and an invoice is created, QuickBooks will expense the item at the cost in which it was purchased. To learn how to receive inventory from a vendor and create a bill for the inventory, perform the steps in the video below:
Here is a summary of the steps that were performed in the video:
1. Click the Receive Inventory icon on the QuickBooks homepage, then click Receive Inventory With Bill, or you can click the Enter Bills icon, or you can click the Vendors menu, then click Receive Item and Enter Bill. .
2. In the vendor field, select the vendor that your company purchased the inventory from.
3. If you created a purchase order for the inventory that was received, then you will see a dialog box called Open POs Exist. If there is a purchase order related to the inventory that was just received, click Yes. If no PO was created then click No.
4. A purchase order was created for this order, and a dialog box called Open Purchase Orders will appear with a list of open purchase orders.
5. Select the purchase order related to the inventory that was received by placing a checkmark in the far left column next to the purchase order, then click OK.
6. After you click OK, the bill will be automatically populated with the information that was entered in the purchase order. Review the bill to make sure that the information is correct. If the vendor has changed the price for the items that were purchased, be sure to change the price in the cost field.
7. If you did not create a purchase order for the inventory that was received, then enter the information into the respective columns.
8. Make sure that you enter the vendor’s invoice number in the Ref. No. field
9. Be sure to enter the date of the invoice in the date field.
10. If shipping expenses exist, click the Expenses tab and select the proper expense account to allocate shipping expenses to.
11. After you have entered in all of the information, click Save and Close at the bottom right.