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dianem1
February 27, 2023
Question

entering bills when inventory is already invoiced

  • February 27, 2023
  • 1 reply
  • 0 views

In QB Desktop;  many times we receive items without bill (because we haven't yet received the bill); 

the items go into inventory;  Then we invoice the items to our customers and the items go out of inventory.

NOW  we receive the Bill from the vendor and have trouble entering it into QB because there is NO inventory to enter the bill against and it won't let us enter as inventory will go into negative.

What is the best way to handle this situation?

1 reply

M
Mark_R
February 27, 2023

Hi there, @dianem1.

 

Let me help you manage inventory received without a bill and know how to handle them when you received the bill from your vendor.

 

When receiving items without a bill, QuickBooks will create an Item Receipt that increases your inventory asset account and accounts payable. To properly handle this situation, you'll need to record a Receive Inventory without a bill. Here's how:

 

  1. Open your QuickBooks Desktop company file.
  2. Go to the Inventory menu, then select Receive Items.
  3. On the Item receipt window, select the vendor name.
  4. Choose Yes to receive a purchase order for the bill.
  5. Select the correct Purchase Order (PO), then select OK.
  6. Review the information on the Item Receipt. 
  7. Click Save & Close.

 

Once you received the bill from your vendor, you can proceed to Enter bills against Inventory. To do so, you can follow the steps below:

 

  1. From your Home page, select Enter Bills Against Inventory.
  2. On the Select Item Receipt window, choose the vendor.
  3. To keep the original inventory availability date, select the  Use Item receipt date for the bill date checkbox.
  4. Select the Item Receipt that corresponds to your bill.
  5. Click OK. QuickBooks converts the Item Receipt into a bill.
  6. Once you're ready to pay the bill, you can proceed to pay bills.

 

I'm adding these articles for more guidance: 

 

 

Just in case you'll need to adjust the quantity or total value of your products in the future, you can check out this article for the detailed steps and information: Adjust your inventory quantity or value in QuickBooks Desktop. This will help you update inventory quantities and value as you track every purchase and sale.

 

Come back to this post if you have other concerns or follow-up questions about receiving inventory. I'll be around to provide further assistance.

D
dianem1Author
February 27, 2023

Hi Mark_R

Thanks for the reply!

But the items are no longer in our inventory because we have invoiced our customer BEFORE we get the vendor bill;  So I have trouble entering the Bill

QB shows me negative balances when I go to add an old invoice because the the items are no longer in our inventory

Please advise

 

G
Giovann_G
February 27, 2023

I'll share the steps to correct the negative balances of your inventory, dianem1.

 

A negative inventory problem arises when sales transactions are entered before purchases. This indicates that you've sold inventory goods that weren't actually on hand. It may also result in the following issues that could affect your company file:

 

  • Data Damage forces you to constantly rebuild the file to bring your B/S to balance
  • Cash-basis Balance Sheet is out of balance
  • Profit and COGS amounts are incorrect
  • Balance Sheet Inventory Account amounts are incorrect
  • Incorrect Vendor Reports

 

Let's correct this by adjusting the transaction dates on the bill to be before the invoice date. You can run the Inventory Valuation Detail report to see all negative values in the On Hand column.

 

Here's how:

 

  1. Go to the Reports menu, then hover over Inventory.
  2. Select Inventory Valuation Detail report.
  3. Click the Dates, then choose the correct reporting period or select All.
  4. Scroll down and find those items showing the negative amount in the On Hand column.
  5. Double-click the bill or invoice and adjust the date to make it earlier than the invoice dates.
  6. Repeat steps 3 and 4 for each item with a negative quantity.

 

For your reference, read this resource for more details: Fix negative inventory issues in QuickBooks Desktop.

 

If the issue persists, you can run the Verify and Rebuild tool to make sure your company file is free from any data damage.

 

Additionally, I've added this article to guide you with your payables for future use: Pay bills in QuickBooks Desktop.

 

If you require any additional help with QuickBooks inventory management, feel free to post a reply to this thread. We're available to help all the time.

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