Overview of the Purchases window

Purchases window

Item layout -- Receive Item

The Purchases window allows you to create transaction records for the items and services you buy. The window has four layouts. You'll choose a layout that best suits the type of transaction you want to enter -- Item purchase, Service purchase, Professional purchase or Miscellaneous purchase.

The Item purchase layout has four statuses -- Quote, Order, Receive Item or Bill.

Using Receive Item

Notes:
The use of the Received column for purchases has changed

Quantities appear in the Received column only if you use the Receive Items feature

You don't have to use the Receive Items feature if your business needs don't require it

Item purchases have a fourth status -- Receive Item that other types of purchases don't offer. This status can be used with inventoried items only.

Use the Receive Item status of the Item layout to record the receipt of an inventoried item when the item has been received with no vendor's bill.

When you record an item receipt:

The item is added to your inventory on hand.

The purchase price of the item is added to your Linked Account For Item Receipts (A/P Accrual - Inventory). Your Accounts Payable account isn't affected at this time.

When you're ready to 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.

The information entered on an item receipt is transferred to an order.

In most cases, you'll use the Receive Items feature after you've created an order for the item and before receiving the bill for the item. That is, you've entered an order for the item, the item you ordered arrives, but no bill is included with the item. Using the Receive Items feature, you'll add the item to your inventory, allocate the purchase price of the item to your Linked Account For Item Receipts (A/P Accrual - Inventory) and update your order by adding the quantity of items received. The item is ready to be sold.

Note: If you receive a message to update an order or create a new order

You can also receive items without first entering an order; the order will be created when your record the item receipt. Before you can record the item receipt, though, you must enter a quantity in the Order column of the item receipt. You must enter a quantity that is equal to or greater than the quantity in the Received column.

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

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

Use this status to record the receipt of an inventoried item when a vendor's bill didn't accompany the item. That is, you've received the item, but you're not sure of the purchase price.

The Receive Item status is available for Item purchases only.

The Receive Items feature is used only for entering quantities that you receive without a vendor's bill.

When you record an item receipt, your on-hand inventory is adjusted.

When you record an item receipt, the cost is assigned to the linked Liability Account for Item Receipts; the Accounts Payable account isn't affected at this time.

When you record an item receipt:

If you received the item against an existing order, the order is updated with the quantity of the item received.

If no order existed before receiving the item, you'll enter quantities in the Ordered and Receive columns; an order is created and the quantities entered on the item receipt are included on it.

If you receive a message to update an order or create a new order

The Receive Item window can be considered a data entry window. Display and print the order to review item receipt information.