Example #2: Enter an item receipt without first entering an Order

You've ordered a special tire for a customer's car over the phone and didn't enter an Order for it. 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.

Enter the vendor's name and other detail information about the purchase. Enter the quantity ordered, in this case, 1, in the Ordered column. Enter the quantity received, in this example, 1, in the Receive column. Enter information about the item, in this example, the tire. You'll also enter an estimated purchase price. (You can adjust the purchase price of the tire when you receive the bill from the vendor.)

Note: If you forget to enter a quantity in the Ordered column, when you click Record, you'll be prompted by an alert message to enter an amount in the Ordered column.

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).

• An Order is created using the information entered in the Receive Item window; the item receipt is no longer available. The order will show 1 in the Order column and 1 in the Received column.

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, you'll be prompted about the order. You'll choose the original order from the list. Click the Bill button at the bottom of the Order window.

The Bill will show a 1 in the Received column. (The quantity will be display-only.) You'll enter a 1 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.