 QuickBooks Desktop 2023. Record receipt of inventory with bill linked to PO or purchase order. Let's do it within two weeks. QuickBooks Desktop 2023. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop. Get great guitars practice file. We started up in a prior presentation going to the setup process. We do every time maximized the home page and the view drop down noting we got the hide icon bar open windows list checked off open windows open left side reports drop down company and financial. Let's open up that profit and loss report change in the range 010123 to 123123 we will customize it fonts and numbers change in the font. Let's bring it on up to 14. Okay. Yes. Okay. Let's open up the balance sheet in the reports company and financial this time the big balance sheet customize it change in the range in 010123 to 123123. Fonts and numbers to change to 1414. That's what we want. I'm going to open up the trusty TB trial balance as well in the reports drop down company not company accounting and taxes category trial balance ranging its changing 010123 to 123123. Let's customize it to change the fonts and numbers. Let's bring it up to 16 for the TB. Okay. Yes. Okay. Trial balance is what I mean by TB. That's the setup process we do every time. Let's go back to the home page. Now in prior presentations we entered a purchase order remembering that the purchase order doesn't have anything to do with the financial statements does not record anything to the financial statements it being just a request for the inventory. We can track the purchase orders however by going to the vendors section here or vendors drop down up top the vendors center here. And so you could do that by going to the vendors we can imagine that we got a box of guitars that we ordered with the purchase order which we didn't yet pay for. But we requested because we have the control to do that in some cases depending on the type of industry we are in. So in the new vendor vendor down here we see the open purchase order here. We can also see the purchase order by going to the transactions and go into the purchase orders. We can look at all purchase orders or possibly just the open purchase orders. There's the one we're assuming we received the guitars from. If I open it up what did we order SQ Squire guitars 20 of them. We expect to have a box of 20 guitars now that we have received from the new vendor vendor. So let's go back on over to the home page then. Now note last time last month when we received the transactions we recorded them and entered them into the system directly with a check. So we just want to emphasize the difference between the bill in form or the bill that might be used in common terms in the bill and checks within QuickBooks. If we entered the purchase order requesting 20 guitars vendor Fender sends the guitars and we now receive them and in the box we have a bill. Remember that that bill in the box could be called an invoice because if they were using QuickBooks over at Fender they would create an invoice to bill us. When we receive it we commonly would call it a bill but that doesn't necessarily mean that we entered into our QuickBooks system as a bill because as we did last time we could just pay it off with a check. So we could use a check form to pay the bill but this time we're going to do the accrual process entering a bill which is similar to just a bill here but I'm just going to go to the next link in the chain creating the bill from the purchase order. So we receive inventory with a bill. So I'm going to say OK. And then we'll type in Fender which is the new vendor and it's it's paraphrasing. I'm paraphrasing it saying hey we got an open purchase order. So do you want to connect that. I'm going to say yes please. That's the one. Let's check it off and say OK. I'm going to close up the detail on the right hand side. And so now it's populating based on the purchase order. Let's change the date. I'm going to go for a lot of a lot of twos 0 2 22 23 0 2 22 23 and amount is pulled in for us. The do the bill date is the 34 23 because we said it was let's say the terms here. Let's say our 30 days. So now we've got it moving out to 3 24. So this is the date that we input the bill. This is then when it's going to be due. We set the terms to be the 30 days. We could then add a memo if we so choose. Notice at the bottom of the bill we've got expenses. If it was going to simply an account category but we are using items because we not only wanted to go to the account of inventory but also hit the sub ledger. We also want to make sure that we have the inventory properly tracking the inventory in a perpetual inventory system. This information is pulling in from the purchase order as we have the box of guitars. We would want to count them and make sure that they tie out to you know the 20 guitars that we should have. We also assigned it to the customer which is new music stuff because the customer asked us for guitars from this particular set up yet it was a new vendor vendor. So we set them up and requested these guitars specifically for the customer which isn't necessary to enter the bill or the purchase order but will be useful because now this is billable meaning when we create an invoice or sales receipt we should be able to pull this information into it and and invoice our client. So what's this going to do. It's going to increase accounts payable because it's a bill. It's going to increase inventory because that's what this item is assigned to do and it's going to increase the sub ledger of inventory for the 20 units of Squire guitars. Let's save it. Let's close it. Let's check it out. You've changed the terms. I'm going to say yeah I know that and if I go to the balance sheet now balancing the sheets we can say OK we know that the the inventory went up. So it's going to the inventory and say there's the bill. There's the three thousand three sixty if I go into that boom there it is closing it back out closing this back out. The other side went to the accounts payable double clicking on the AP accounts payable. There's the bill increasing the accounts payable representing a liability. What we owe to a third party the new vendor vendor that is closing it out. We can see the sub ledger related to the accounts payable. We can find that by going to the reports dropdown. We can go to the vendors and payable. Let's look at the vendor balance detail account. And so now we can see here's the bill for for Fender the total AP lines up to the three thousand three sixty. Normally we might not use this report as much because we could find the same information in the vendor center over here although the total isn't in the vendor center. In other words I can go to the vendors. I can sort the vendors by open balance vendors and there's vendor right there. We could see the detail. We could see that now we have a bill and the purchase order. If I go into the purchase order we can see we've received in full from the purchase order here closing this back out. And then we've got our bill outstanding. We can also go to the transactions up top. We can look at the purchase orders. There's no more open purchase orders. All purchase orders are here. We can look at the bills as well. We can look at all bills or simply the open bills which now we have that one bill for Fender that we need to be paying at some point in the future. If I go back to the balance sheet we can also say OK the inventory should have changed. It should go up by those 20 guitars. I believe it was 20 reports drop down inventory. Let's look at the inventory valuation summary. Change the date twelve thirty one two three. And we could see there's our twenty square guitars are on the books now we're now at the nine thousand six twenty six which should match what is on our balance sheet nine thousand six twenty six. So the next thing we expect to happen would be that we're going to pay the bill and that would be just the normal process. It's similar to us if we entered the bill this way we just entered in essence the same kind of bill form but we went in this track so it's up up here. But next time we're going to pay the bill or at some point we'll pay the bill would be the next format or the next part of the cycle and there we can see the bill here and we would use the pay bill form to do that and we might see that in a future presentation. For now let's go to the trustee trial balance over here and we can see where we stand also just want to point out there was no impact on the profit and loss so we bought the inventory even if we paid cash for it it wouldn't go on the P&L so we didn't have any change. Note that you could run the P&L just for one month instead of two say 020123 and so so we can kind of see one month instead of two months but again no no transaction here when will the inventory hit the P&L the profit loss the income statement when we sell it in the form of cost to get sold that will happen when we create an invoice or sales receipt. Now let's go to the trial balance which is running for the two months I put it for the full year but we only have two months worth of data. You could check your numbers up here and see if everything ties out if not then try changing the date see if it's a date issue you can drill down on the data and go to the source document to make changes if necessary at the end of the data input for the second month we will be running transaction detail reports to further check our numbers.