Rustler’s Quickbooks Tips

Occasionally you pay for an order of inventory items ahead of time and when the shipment arrives there are missing items that will not be shipped at all. When you paid for the purchase a couple of things happened. You told QB to increase the inventory asset account by the amount of the purchase, and you increased the quantity on hand for everything you thought you were getting. Since you will not be getting some of the items, there is a credit with the vendor.

But there is more than a credit memo to deal with, when you paid for the items you told QB you receivied them so they were put in inventory. Quantity on hand increased as did the inventory asset account.

Since you didn’t get them, they need to be backed out of inventory asset and the quantity on hand needs to be backed out too.

Use the icon receive inventory with bill, select the vendor, mark it as a credit, enter the item(s) not received, the quantity and the cost, click save.

This takes the items out of inventory, and creates a credit to the vendor. The next time you buy from the vendor when you go to pay bills there will be a credit sitting there waiting to be applied if you want to.