Example #1: Enter an item receipt after recording an Order

You've ordered a special tire for a customer's car, and you've recorded the order in MYOB AccountEdge. You receive the tire (without a vendor's bill), and you're ready to sell the tire and install it for the customer.

You'll enter an item receipt for the tire. There are several ways to open the Receive Item window. In this example, we'll open the window by selecting the Receive Items selection on the Inventory command center.

Because you've already entered an order for the tire, you'll be prompted about the order when you enter the vendor's name in the Receive Item window. You'll choose the original order from the list; the order is displayed in the Order window. Click Receive Items to transfer the order information to the Receive Items window.

You'll see the quantity you ordered in the Ordered column; the quantity will be display-only. You'll enter the quantity that you received, 1, in this example, in the Receive column. At this point, the information for the tire will show 1 in the Ordered column and 1 in the Receive column.

Also enter an estimated purchase price, if no price was entered on the order. (You can adjust the purchase price of the tire when you receive the bill from the vendor.)

When you record a purchase using the Receive Item window:

• The item will be added to your on-hand inventory.

• The purchase price of the item will be allocated to your Linked Account For Item Receipts (A/P Accrual - Inventory).

• The Received information will be added to the information already included on the Order; that is, when you view the Order, 1 will now appear in the Received column as a display-only quantity and 1 will show in the Order column. The item receipt that you used to enter the information is no longer available.

You can now enter a sale that includes the tire.

The purchase price of the item will remain in your Linked Account For Item Receipts (A/P Accrual - Inventory) until you record a bill for it.

When you receive the vendor's bill, you'll use the Bill status of the Enter Purchases window to record the bill for the tire. When you enter the vendor's name in the Vendor field of the Bill window, you'll be prompted about the order. You'll choose the order from the list. When the order is displayed, click the Bill button at the bottom of the Order window.

The Bill will show a quantity of 1 in the Received column. (The quantity will be display-only.) A quantity of 1 will also be displayed in the Bill column. When you record the Bill, the purchase price will be transferred from your Linked Account For Item Receipts (A/P Accrual - Inventory) to the Accounts Payable account.