How to Receive Partial Deliveries Against a Purchase Order in Intuit Enterprise Suite (Item Receipts)

Before you start

• Intuit's item receipt article is shared with QuickBooks Online. Its video walks through the workflow in Intuit Enterprise Suite.
• Your inventory items are set up, and purchase orders are turned on: Settings > Account and settings > Expenses tab > Purchase orders > Edit > Use purchase orders. This comes from Intuit's purchase order article, which lists Intuit Enterprise Suite in its product label but is written for QuickBooks Online.
• Decide before you switch. Once item receipts are turned on, they can't be turned off, and bills no longer update quantity on hand.
• Intuit's article doesn't say which user role or permission can change the receiving method or create item receipts.

Step 1: Switch from bills to item receipts

1. 1Go to Settings, then select Account and settings.
2. 2Select the Sales tab. Intuit's video adds that you find the Products and Services section and select the pencil icon to edit it.
3. 3From the Inventory receiving method dropdown, select Item receipts.
4. 4Read the instructions, then select Yes, permanently switch to confirm.
5. 5Select Save, then Done.

After the switch, item receipts update quantity on hand the moment goods are received, and bills no longer do. Intuit's note says the setting can't be turned off, and to contact its support team if you need help.

Step 2: Record what arrived against the purchase order

1. 1Go to All apps > Inventory > Item receipts.
2. 2Select New item receipt. If this is your first one, select Receive items.
3. 3Select the Vendor from the dropdown.
4. 4In the Add items section, select Add on the purchase order you're receiving against. If you don't have a purchase order, enter the details manually in the Item details section.
5. 5Make the receipt match what actually arrived. Intuit says that if a vendor sends half your order today and the rest next week, you can record exactly what arrived. The article doesn't name the quantity field.
6. 6Select Save and close.

An item receipt created from a purchase order is linked to it automatically, and you can view received quantities on the purchase order. Intuit's article doesn't walk through receiving the second half of a split delivery, and it doesn't say how a partly received purchase order appears when you add it to the next item receipt.

Intuit's article isn't consistent about Accounts Payable. Its section on switching to item receipts says they increase your Inventory Asset account only. Its section on receiving inventory without a bill says an item receipt increases your Inventory Asset and Accounts Payable (A/P) accounts. Ask your accountant to check the balance sheet after your first receipt.

Step 3: Check what's still to come

1. 1Open the purchase order to see the quantities received so far.
2. 2To see every open purchase order, go to Reports > Standard reports and run Open Purchase Order List or Open Purchase Order Detail. These report names come from Intuit's purchase order article.

Step 4: Enter the bill when it arrives and link it

1. 1Select + Create, then Bill.
2. 2Select the Vendor from the dropdown.
3. 3In the Suggested transactions section, select Add to link a purchase order or an item receipt.
4. 4If you see a pop-up for a partially received purchase order, select the appropriate option. Intuit's article doesn't list the options.
5. 5If necessary, change the dates, amounts or other details on the bill.
6. 6Enter the vendor's Terms.
7. 7Select Save and close.

The purchase order is closed only when the bill is created, and that can't be undone. Because Intuit doesn't explain the partially received pop-up, check your choice before you save a bill against a purchase order that's only partly received. Cost of goods sold comes from the item receipt, even if there's a linked bill.

Matching the purchase order, item receipt and bill

In a three-way match, you check the purchase order, the item receipt and the bill against each other. Intuit Enterprise Suite links all three, so you can see the chain from ordering to receiving to payment. Intuit's article tells you to make sure the item receipt matches the purchase order and is linked to the correct vendor bill.

If something doesn't look right

• A bill didn't change quantity on hand: after the switch to item receipts, bills no longer update quantity on hand. Create an item receipt for the goods.
• You want to go back to bills: you can't. Once item receipts are on, they can't be turned off. Intuit says to contact its support team if you need help.
• The purchase order closed: it closes when the bill is created, and that can't be undone.
• Goods arrived with no purchase order: create the item receipt anyway and enter the details in the Item details section.
• Cost of goods sold doesn't follow the bill: it comes from the item receipt, even if there's a linked bill.

Where Intuit Enterprise Suite leaves the work to you

• Comparing the purchase order, item receipt and bill. Intuit links them and tells you to make sure they match.
• Receiving the rest of a split delivery. The article gives the half-now, half-next-week case but doesn't walk through the second receipt.
• Choosing the right option on the partially received pop-up. Intuit doesn't document the options, and closing a purchase order can't be undone.
• Getting a date from the supplier for the quantity that hasn't arrived.
• Deciding whether to switch at all. The change to item receipts is permanent.

How Logistify helps

Logistify doesn't create, receive or close purchase orders in Intuit Enterprise Suite, and receiving stays with your warehouse team. The Procurement Service follows up with suppliers on open IES purchase orders. A partly received purchase order stays open until the bill is created, so it's one of them. On the sales side, the Sales Order Service enters customer orders that arrive by email, PDF, Excel, EDI and other channels into IES as sales orders. To control who signs off purchase orders and bills, see how to set up approval workflows.