How to Receive Inventory Against a Purchase Order in QuickBooks Desktop

Before you start

• Inventory and purchase orders must be on: Edit > Preferences > Items & Inventory > Company Preferences, then Inventory and purchase orders are active.
• Have an open purchase order for the vendor. Receiving against it carries the items and quantities over, so you don't retype them.
• Count what actually arrived and keep the packing slip next to you.
• In Enterprise, check whether Enhanced Inventory Receiving is on. It changes how item receipts and bills post, and it can't be turned off.

Step 1: Receive items that arrive with the bill

1. 1On the Home page, open the Receive Inventory dropdown and select Receive Inventory with Bill.
2. 2In the Enter Bills window, choose the vendor from the Vendor dropdown.
3. 3When QuickBooks asks whether to receive against an open purchase order, select Yes.
4. 4Select the purchase order you're receiving against, then select OK.
5. 5Review the bill. The Memo is the only purchase order field that doesn't copy over.
6. 6Change each quantity and cost to match what arrived and what the supplier billed.
7. 7Select Save & Close. Pay the bill later from Pay Bills.

Without Enhanced Inventory Receiving, saving adds the items to quantity on hand and records what you owe the vendor.

Step 2: Receive items before the bill arrives

1. 1On the Home page, open the Receive Inventory dropdown and select Receive Inventory without a bill.
2. 2In the Item Receipt window, choose the vendor.
3. 3Select Yes to receive against an open purchase order, choose it, and select OK.
4. 4Set each quantity to what arrived.
5. 5Select Save & Close.

The item receipt adds the stock to inventory right away. Without Enhanced Inventory Receiving, it also records the amount in accounts payable.

Step 3: Enter the bill when it arrives

1. 1On the Home page, select Enter Bills Against Inventory.
2. 2In the Select Item Receipt window, choose the vendor.
3. 3To keep the date the stock arrived, select Use Item receipt date for the bill date.
4. 4Pick the item receipt the supplier's bill covers. Each item receipt converts on its own, so repeat for any others.
5. 5Select OK. QuickBooks turns the item receipt into a bill, ready for Pay Bills.

How to record a partial receipt

• Receive only what arrived. On the bill or item receipt, change each line's quantity to the count on the dock.
• The purchase order stays open for the rest.
• When the rest ships, receive against the same purchase order again.
• In Enterprise with Enhanced Inventory Receiving, the purchase order shows both the quantity received and the quantity billed.

Short shipments on the sales side work differently. See our guide to backorders and partial shipments.

Receiving with the Enterprise warehouse worksheet

In Enterprise, the Purchase Order Management Worksheet tracks receiving by site, status or vendor. It's an Advanced Inventory setting. Go to Edit > Preferences > Items & Inventory > Company Preferences > Advanced Inventory Settings. On Site Operations, select Enable Purchase Order Management Worksheet, then open it from the Inventory menu.

• On the Purchase Orders tab, select the purchase order and send it to a device, or print it for manual receiving.
• On the PO Progress tab, the Actions menu can create an item receipt or a bill for the selected purchase order.
• Statuses run from Sent for Receiving to Received, then Complete once it is billed.
• The worksheet isn't available once Enhanced Inventory Receiving is on.

Troubleshooting

• The purchase order isn't offered: check you picked the same vendor, and that it isn't closed or already received in full.
• With Enhanced Inventory Receiving, item receipts can't carry expenses, and neither item receipts nor bills can have negative lines.
• With Enhanced Inventory Receiving, close a purchase order for non-inventory items with an item receipt.
• Bills no longer add stock once Enhanced Inventory Receiving is on. Record an item receipt as well.

If a later count still doesn't match QuickBooks, adjust the quantity on hand.

Where QuickBooks Desktop leaves the work to you

• Someone has to compare the packing slip with the purchase order and key in every quantity.
• QuickBooks only knows the expected date someone typed. Whether a shipment is really on its way, you learn from the supplier.
• Short shipments leave lines open until someone receives the rest or closes them.
• Matching the supplier's bill to the item receipt and the purchase order is manual.

How Logistify helps before the truck arrives

Logistify doesn't receive inventory or enter bills. The Procurement Service follows up with suppliers on open purchase orders and captures confirmed dates and quantities. If a supplier confirms a smaller quantity, that exception goes to a person on your team. Read how AI purchase order tracking works with QuickBooks Desktop Enterprise.