QuickBooks Desktop Tutorial: Purchase Workflow - Purchase Orders, Item Receipts, and Bills

[@vipergod2000]

Thanks so much Hector. Great that you do these videos using a very practical dialogue that is very articulate. Keep them coming - really appreciate it!

[@HectorGarciaCPA]

Glad you liked it

[@gissellegeiling8933]

Hector thank you so much! This video was amazing. You’re a blessing. Be safe! Thank you for sharing your knowledge.

[@pussy00]

Thanks Hector for giving me a few examples of vendor orders Trying to get a promotion at a casino warehouse dept

[@HectorGarciaCPA]

NITEOWLS you welcome

[@josh1667]

Another helpful video Hector, a.k.a QuickBooks Guru.

[@HectorGarciaCPA]

Josh Edwards` :)

[@youniqueboutique2134]

Thank you!

[@HectorGarciaCPA]

:)

[@rosies1645]

So happy to see your videos online again :-)

[@HectorGarciaCPA]

Thanks

[@yamasakhizada3563]

Thank you for your great video and explanation

[@shawkathossain5877]

Sir i want to know how to daily cash purches products and return in quickbook.Also purches and sales by credit card

[@pcngo1]

Great video! What GL is being credited for item reciept to offset the debt to inventory? Also, would you know if QB automatically corrects any price and quantity variances in the background when posting an invoice against the item reciept? Thanks again for all your hard work!

[@user-gn4vf3zv4v]

Is there a way to copy purchase order data from excel and paste it into a purchase order template in quickbooks desktop?

[@angelaw6858]

very nice Hector thank you!

[@gk73988]

Thanks for the video. My problem is that we won't know which inventories will come from which suppliers until we receive invoices after sea containers are arrived. Its usually 3~6 months later. We put bulk orders on one PO and left the vendor's information blank. Here comes the problem because QB doesn't let the user to change different vendors on same PO. So, the accountant uses enter bill in order to processing payment. This way cause hard to track PO's backorders because QB wont deduct quantities from the PO. When there are bulk POs, what is efficient way to do payment, inventory receipt and backorders management?

[@jackimyers7818]

Thank you for these videos and taking time to answer questions! We have ran into an issue, after an item is received and we are waiting on our invoice to come in, on our AP report it shows that we are past due in paying this? We have changed the terms to 30 days but it still shows that on the AP report, is there anyway to change it so it does not show? Thanks for all of your help

[@kennethabshire9669]

I pay invoices before I receive inventory usually . In desktop premier how to I pay my purchase order without receiving items

[@naimahmadi6969]

Hi, Hector thanks for your great videos please work on bank reconciliations properly

[@HectorGarciaCPA]

Naim Ahmadi there are a few videos on that.

[@davidjcamacho]

Thank you Hector. We pay sales tax to all of our suppliers, do you or would you include sales tax in the price of the item or how would you include the sales tax on vendor invoices?

[@HectorGarciaCPA]

I would

[@alanbaker8337]

Hector, thank you for all the great information you provide. Is there a way to create a PO with multiple lines, by doing a copy/paste of a batch of part numbers? I'm looking for a similar process as to when adding a batch of item numbers to the item list by copying from Excel to QB. Does that process exist for POs? I ask because sometimes I need to release a PO with 50+ lines and looking for an easier way to accomplish.

[@CrossFit-Carnivore]

How do you get that nice workflow dashboard? We are on QuickBooks Plus... I'd like to setup the same workflow... purchase order --> receive inventory... etc...

[@HectorGarciaCPA]

That was QB Desktop… you have QB online

[@mbecker1313]

Thank you Hector for all of your great videos. They've been really helpful. One thing I notice when I watch QB videos is that the creator rarely mentions the version of QB that they are using. Going forward would you mind adding that to your tutorials?

[@HectorGarciaCPA]

Mary Becker nice observation... so I'm ALL my videos, is QuickBooks Desktop (2013-2018) Pro, Premier, or Enterprise... OR QuickBooks Online (when is this one, I mentioned it!)

[@EvolvedApe]

Our president pays for the vendor invoices, then hands us the invoice to create a PO. So even before the PO is created, it's already paid. Do we create the PO, then "Enter Bill", and select the vendor, and check the PO?

[@suzannelynch4931]

Does the desktop version have a system for approvals of PO's with in QB?

[@janeywright]

How do you have online bank pymt in the pay bill method? I have set up ACH in my QB method setup but it doesn’t show up when paying bills.

[@emilydiaz8202]

Hi Hector! Can you tell me if there is an easier way to receive in 1 line item from a 10 line item PO without going through a zeroing out the 9 lines you don't receive in yet? I know when I ship a multi line SO it gives me the option to choose which lines I am sending, is there a similar option for receiving?

[@HectorGarciaCPA]

No, you just need to zero them :(

[@nancyblake6515]

Hi Hector, could you tell me if I am able to process an Estimate to my supply (for the purpose of getting a quote on material) then convert that Estimate to a Purchase Order? Thank you Nancy

[@richardandcelestechannel8615]

can I change also the item received against PO once the bill arrived?can I edit it before I click the bill received?

[@HectorGarciaCPA]

Yes

[@oliviaboss1739]

how do you unreceived a PO that was already received and paid. incorrect PO was received

[@HectorGarciaCPA]

Delete the bill

[@ara4jeff]

Hi Hector, how would I post a payment made by credit card after it's gone through the Purchase Order created and received item without bill? Now I have the credit card bill to pay.

[@nicoleking2696]

When do you use the expenses tab?

[@HectorGarciaCPA]

With any transaction that would not involve inventory items.

[@nicoleking2696]

@@HectorGarciaCPA like if there was a freight or some other charge that was not specifically for the items ordered?

[@Sanjafterdollars]

What do do when you have paid in advance And also if you receive partial delivery ?

[@HectorGarciaCPA]

sanjeet kohli write a check to accounts payable

[@catreelsonline]

For partial delivery .. U can pay for just what u recieved ... By changing the quantity and the cost respectively in the enter bill section

[@olinbordig]

hi hector, creating a purchase order with 1000 items for one supplier from the list of 12,000 items list is a daunting task. i try to make it simplier by having two windows on my screen ITEM LIST window and PURCHASE ORDER window. now the question is how to drop the item im trying to order from item list window to purchase order windows. do you some tricks so I can do it? the tricks im using now is i click the item, highlight the item name/number, right click the mouse and click copy. go to purchase order window then paste.

[@HectorGarciaCPA]

CRTL L and CTRL U

[@olinbordig]

Hector Garcia CPA hi hector, many thanks. CTRL U then CTRL Tab to go back to item list.

[@dougarmstrong5120]

Hi Hector, thanks for the great video, I'm so glad I came across this! What if your PO was paid from an employee that was reimbursed on an expense report? How would you receive and show that PO as paid? (Check was written for employee already).

[@HectorGarciaCPA]

PO’s are not paid... only bills can be paid

[@rosanava2346]

what if we receive more items than what was on the purchase order?

[@HectorGarciaCPA]

That’s ok

[@bijendrajit]

How do you enter a purchase order for items that have free stuff. Lets say I wanna put an entry for 10 candies, but I got 1 free candy. i.e i got 11 candies for the price of 10. Please help

[@HectorGarciaCPA]

Add a line of an 11th one for zero dollar

[@krishnakumarta8243]

Does QB create vendor liability automatically when the item is received without a bill or should the user pass a journal to record the expense in the relevant period?

[@HectorGarciaCPA]

It creates the Accounts Payable automatically.

[@lse9926]

We are using QKBKS for our accounting needs and have been for years. However, now we are currently recording all purchases made for our ongoing project by giving each purchase specific number, detailing who is requesting the purchase, what they need in detail, the department needing item, where in the building it will be used as well as how much the item costs all in excel. Is QKBKS 2018 able to enter all of this information and sort the information as needed so we can use one software. I hope this made sense. Thanks.

[@HectorGarciaCPA]

Yes.. you can do purchase orders and invoices for each project.. is great for job costing!

[@jackimyers7818]

Thanks for the videos, they have helped so much. I do have a question, when I go to Enter Bills Against Inventory and find my PO, the vendor has started sending us 2 Invoices (different invoice numbers) for the one PO. Is there a way to "split" the PO? I have tried taking off the items not listed on one of the invoices but when I go back into Enter Bills Against Inventory the PO is not there. Thanks for your help

[@HectorGarciaCPA]

yes you can partially receive the PO's by modifying tue quantities

[@rizwanbaig4328]

How can we show sales tax in Purchase order, which we have to pay to our vendor, separately as we can while making invoices!! Secondly, how can we customize invoices & Purchase orders for large number of line items (100 items), as QB only give options for one page in customization. Please reply.

[@HectorGarciaCPA]

For purchase orders, you can enter a separate line for sales tax, but when you received it; sales tax should be included in the cost of the product. You can only customize one page

[@bdesilva]

@hector Is it possible to use Purchase Orders for a services org that doesn't use Inventory? We do hire subcontractors to do work. They submit time just like employees and that time creates a bill for them. I'd love to start the project relationship with the sub using a PO. The time coming in for that project would reduce the amount avail in the PO and we'd be able to track how close to the max time agreed to we are for every sub for every project.

[@HectorGarciaCPA]

Yes..

[@kristenkivett9135]

What happens when there is a back order for an item on the p.o. and the vendors are putting the back ordered item on the bill, but there may be several weeks before we actually receive the back ordered part. It seems to have been confusing our inventory as just accepting these items as a "item receipt".

[@HectorGarciaCPA]

+Kirsten Kivett exclude the items that are on back order (modify the QTY column)

[@kssautosparesealimited3555]

Hi Hector, the moment one closes the p.o do the items automatically save themselves as part of the inventory or do you have to input them again in the inventory?

[@HectorGarciaCPA]

Kss Autospares EA limited closing a PO doesn’t affect inventory; you would need to RECEIVE it with an item receipt or Bill.

[@sandraweddle1574]

Thank you Hector. Do you have to use a PO? Usually i just get a bill from the vendor.

[@HectorGarciaCPA]

Tnkrbll2k you don't.... POs are optimal.

[@Dave-tz9zx]

Does an item receipt add to inventory on the balance sheet, therefore creating some type of liability? Or does it not affect the balance sheet/inventory list, etc.?

[@HectorGarciaCPA]

Yes it does.. is the same as a Bill

[@Dave-tz9zx]

@@HectorGarciaCPA Thanks Hector!

[@jaycogswell5716]

Hector what if I pay a deposit on a PO? So I pay, say, 20% deposit on a PO, actually do not receive physical possession of any items at that time, then pay the balance due on items as they physically arrive in my warehouse over time. Is this controllable in QBO?

[@HectorGarciaCPA]

You using the same process in QBO

[@gabss2618]

Hello Hector, how would I go about recording a purchase order and then only receiving one of the items? would I have to edit the purchase order I made?

[@HectorGarciaCPA]

Gabriella Veliz just change the QTY on the item receipt / bill, no need to change the PO

[@rosaynescurbelo9339]

Hector, i entered bill instead of choosing "enter bill with inventory". I went straight to enter bill and input the items. How can I now receive these items without doing a PO or having to redo the the bill as "enter bill with inventory"

[@HectorGarciaCPA]

The bill is enough.

[@sanbii7470]

What if the items where not fully available?

[@HectorGarciaCPA]

You shouldn’t sell it if they are not in stock

[@sanbii7470]

@@HectorGarciaCPA what I meant is what if the items where received partially. Anyways I saw another video of yours explaining that. Thank you!

[@DianneLeigh]

I have been using Quickbooks since 1997 however, I am new to the Purchase Order side of it. My question is. If I set up an item, let's say brooms and set the account to operating expense then create a po, receive against it and enter the bill. Is the cost automatically reflected in the operating expense account? When I enter the bill the item costs are showing but the account isn't and there is nothing in the expense tab. Hope that makes sense. Thanks for your help! I am using QB2017Pro.

[@HectorGarciaCPA]

Dianne Leigh the item needs to be an inventory part in order to avoid having it hit the expense right away.

[@DianneLeigh]

I want it to hit the expense when the invoice comes in. How do I verify that it is hitting the correct expense category?

[@Paige_Me2]

Hello Hector, There is sales tax I am paying on my bill. Do I need to make a item for the sales tax? Or do I use the expense account I am using for the items on the bill? Your example only shows shipping costs being added. Thanks!

[@HectorGarciaCPA]

Include the sales tax as part of the cost of the item/expense you are incurring

[@Paige_Me2]

Hector Garcia CPA If the purchase is for raw material through a purchase order will I need to adjust the cost of each raw material item with the sales tax or make a separate item for sales tax on the bill?

[@ProgressiveID]

OK. Great. You can create a bunch of documents related to vendor. PO, credit, claim, note etc. If you not sent the information to the vendor nothing will happen? Correct? So the workflow is not complete! Right? What is the next step? How do you inform the vendor and how to be sure vendor read it? If I have 78 open purchase orders to this vendor where is the connection between PO and Credit?

[@HectorGarciaCPA]

Iliyan Draganov there is no answer for that.. you need to make sure the vendor gets the info via email or call them.. i don’t know what you are asking.

[@lorenafuentes1884]

Hi Hector you channel is so full of great info! I am new to QB and I just have a quick question.. let say that the purchaser ordered 100 boxes and we only received 50 today they come back the next day and deliver the other 50 can the purchaser turn in 2 different item receipts with the same PO and the vendor only sends me 1 invoice for both item receipts. how can I enter a bill for received items when its just one invoice but multiple item receipts?

[@HectorGarciaCPA]

Lorena Fuentes you can’t.. just use the same invoice number for both bills and pay them both with one payment

[@lorenafuentes1884]

@@HectorGarciaCPA thank you!

[@lisamclaughlin8529]

Hello Hector, i am relatively new to this, but i keep finding when i go to inter the invoice, my PO is not there. I go over to the po and search for it and it says received in full . how can i find where this po is attached if i have not entered the inovice yet??? Thanks LIsa

[@HectorGarciaCPA]

PO and Invoice are two things that are not related to each other, so I do not really know what you are trying to do, sorry...

[@frankvaldes6442]

Hello Hector, watching your videos, very interesting. wanted to ask you Do Non Inventory items get received too in order to pay the bill ? do you have any video specifically on receiving and pay for non inventory items ? thanks in advance

[@HectorGarciaCPA]

Frank Valdes you dont have to receive non-inventory... that is the beauty of them. But you must pay your vendor eventually and send the expense to COGS

[@frankvaldes6442]

Thanks for replying hector I so appreciate it as I'm new to quick books. since all my part numbers at the moment are Non inventory, can you tell me what will the proper flow would be for me ? do I Create the Po and then go straight to Enter Bill and last Pay bill ?

[@HectorGarciaCPA]

Frank Valdes the flow is identical.

[@damu26basky]

hi sir, do we have any report for view the list of item received without supplier bill, so that it helps to have control over the bill pending to be recorded against item received

[@HectorGarciaCPA]

You need to customize a report to only show Open Item Receipts

[@damu26basky]

ok sir thanks for your advice, I shall try

[@guildtitan]

How would you record a credited check (refund) for items damaged?

[@HectorGarciaCPA]

To a customer? Or a check from a vendor?

[@TheBismila1]

HELLO, AND PLEASE LET ME KNOW WHERE IS THE SALES TAX THAT WE PAY IN THE INVOICE ?

[@HectorGarciaCPA]

Rosa Velez we don’t enter that as a separe line item... just add it to the items cost

[@TheBismila1]

@@HectorGarciaCPA thank you very much!!!!!!!!!

[@helenhayes5907]

Hi Hector - we used to use quickbooks for everything in our store but we have since purchased an epos system so i just use quickbooks for bookkeeping now. I have realised that i have made a mistake in that when i enter bills from suppliers for stock purchased i have been assigning it to stock fixed asset- however this is increasing my stock balance but not decreasing it when being sold. Should i be assigning it to the item tab instead under a item called general stock which is what i use to record the sales?? Please help

[@HectorGarciaCPA]

Helen Hayes if you are using a POS system... you should assign all purchases to the COGS account. And then adjust your inventory monthly using the reports from your POS... don’t use inventory items or fixed asset items in QB...

[@helenhayes5907]

Hector Garcia CPA thank you for replying. I really appreciate it

[@mudathernasr3947]

how remove tax FROM purchase order after cancel this purchase order because this tax in this purchase order a barrier from the budget in oracle r13

[@HectorGarciaCPA]

Mudather nasr are you in US?

[@mudathernasr3947]

@@HectorGarciaCPA no I'm in Sudan

[@BrunoAnjos21]

At which point does the system update the inventory?

[@HectorGarciaCPA]

when is received and when is sold

[@adamm2716]

werid i dont have those icons in the vendor section like that

[@maryleffler1894]

You have to choose to use them in preferences

[@melissasims1299]

What happens if you have deleted an item receipt and now it shows pending? It’s not showing my inventory now?

[@HectorGarciaCPA]

Melissa Sims it will reverse the inventory effect for sure

[@melissasims1299]

Hector Garcia CPA can it be reversed or corrected?

[@HectorGarciaCPA]

Melissa Sims re-enter the item recipt

[@newsandevents6278]

How to enter purchase with tax

[@HectorGarciaCPA]

I don’t support QB outside US

[@newsandevents6278]

OK but I need an answer how to enter purchase with tax

[@huotcharinaofficial8753]

You speak to fast

[@HectorGarciaCPA]

sorry

[@hughessemu5832]

is there a report in QBE that matches Purchase orders with Item receipts? Say if i want to match POs and Item receipts for audit purposes

[@HectorGarciaCPA]

No

[@hughessemu5832]

thanks @@HectorGarciaCPA. Is it possible to construct something like that i QBAR though?