When you purchase inventory on credit in QuickBooks, you need to create a purchase order and later record the bill. Here’s a step-by-step guide on how to do this:
Step 1: Create a Purchase Order:
- Go to the QuickBooks homepage.
- Click on the “Create” button (usually represented by a plus “+” sign) at the top of the screen.
- Under the “Vendors” column, select “Purchase Order.”
- Select the vendor from whom you’re purchasing inventory. If the vendor isn’t in your system, you can create a new vendor profile.
- Fill in the purchase order with the details of the inventory you’re ordering, including item names, quantities, rates, and any additional information you want to include.
- Save the purchase order.
Step 2: Receive Inventory:
- When you receive the inventory, go back to the “Create” menu.
- Select “Receive Inventory” under the “Vendors” column.
- Choose the purchase order you created earlier.
- Verify that the items received match what’s on the purchase order.
- Save the received inventory.
Step 3: Record the Bill:
- After receiving the inventory, you’ll need to record the bill from the vendor.
- Go to the “Create” menu.
- Select “Bill” under the “Vendors” column.
- Choose the vendor from the dropdown or create a new vendor if needed.
- Select the purchase order associated with the bill. QuickBooks will automatically fill in the details from the purchase order.
- Review and confirm that the information is accurate.
- Save the bill.
By following these steps, you’ve successfully recorded the purchase of inventory on credit in QuickBooks. QuickBooks will now keep track of your accounts payable, and you can make payments when they become due.
It’s important to ensure that you set up your inventory items and vendors correctly in QuickBooks to make this process as smooth as possible. If you’re unsure about how to categorize your inventory items or vendors, it’s a good idea to consult with your accountant or a financial advisor.
A proficient bookkeeper for small business can use QuickBooks to maintain accurate financial records, track expenses, and ensure compliance with tax regulations.