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MrsH2
November 14, 2023
Question

Purchase orders -vs inventory -vs- invoices

  • November 14, 2023
  • 1 reply
  • 0 views

I am using Desktop Pro Plus 2022.  I have a couple of questions:

Purchase orders - I understand the flow to monitor open PO s.  As the inventory is received and moved to a bill, when does the inventory get added to actual on hand?  At time of receiving?

Inventory - I am working in a construction business.  Some of our projects can be several months out.  If we are invoicing for a deposit, and the inventory is pulled out at time of invoice, some of this product could be on hold for several months before it is actually pulled to install.  Is there a way to hold instead of pull out of stock?  If not, physical inventories will never match.

Also, our inventory is purchased by the square feet; I would prefer that the inventory on hand is by the piece and not by the square foot.  Can that be received that way?

I would appreciate any good feedback.

1 reply

L
LeizylM
November 14, 2023

I understand the importance of tracking inventory accurately, MrsH2. I'm here to provide answers to your inquiries. 

 

In QuickBooks Desktop Pro Plus 2022, the inventory is typically added to the actual on-hand count at the time of receiving. Once a PO  is converted to a bill, then, this will automatically increase your quantity on hand.

 

For your construction business, the option to hold stocks once an invoice is created is unavailable. As a workaround, you can create a sales order instead of an invoice to record a sale that you plan to fulfill in the future. 

 

Here's how to create a sales order:

 

  1. Go to the Customer menu, then select Create Sales Order.
  2. Select the name of the customer.
  3. Enter the necessary information.
  4. Once done, click Save and Close. 

 

Regarding your preference for inventory to be tracked by piece rather than by square foot, you can choose Multiple U/M per item. You select this mode if you buy, stock, or sell any item in more than one unit of measure. For example, you should select Multiple U/M Per Item if you buy an inventory item by square feet and sell it by piece.

 

Here's how:

 

  1. Go to Lists, then select Item List.
  2. Click Item then New.
  3. Select the type of item you want to create.
  4. Click Enable under Unit of Measure
  5. Choose Multiple U/M Per Item and click Next. 
  6. Set the name of UM and its abbreviation.
  7. Select the Default Units of Measure on the purchase form and sales form.

 

In case you need it, I'll add these articles that tackle managing PO and adjusting the quantity or total value of your products in QBDT for more information:

 

 

Please post again or leave a comment in this thread if you have follow-up questions about this or anything else QuickBooks. I'm more than willing to help. Take care always.

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