vendor prepayment - inventory tracking

[monsterinfl]

Have searched many places on this and seems to be a common questions and also a custom solutions towards each companies work flow and deliverable they want in QB.

• 
  We prepay for inventory items to vendors using our bank account in full
  we need to send vendor "reference" (preferably PO) for inventory items purchasing, qty of each and price for each
  the vendors are not always accurate on the items they ship - 80% of purchases from vendors are short on stock ...some take forever to ship when they should ship right away
  we need to receive in based on the expected item and count in receiving
  we need visibility on items paid for but not yet received
  need visibility on vendors who's purchases are received, but have negative or positive $ that are owed to us or to them on next future order based on +/- of items received

Most options I account for the $, but make the inventory on hand out of wack. ...some account for the inventory but have painstaking procedure to input and some can work but do not exactly seem standard practice.

Thanks for your help in advance!

 

[maliachick]

In QuickBooks, you should make sure that Inventory and purchase orders are active in the Items & Inventory preferences. Edit, Preferences. You use the Create Purchase Ordrers in the Vendors menu. You will enter the inventory Items you order. As the inventory comes in, you will either use Receive Items and Enter Bill for all inventory received and billed at same time, Enter Bill for Received Items for only inventory received and billed at that time, so techincaly, back orders will come later and billed later (separately) or Receive Items to received inventory as it comes in but bill will result later, not now.
This helps keep track of what you have on order, what has been received and what is still on back-order and also track your payables. Also, don't forget that in any of the receiving items window, there is a Select PO button, which you would choose the PO that you originally created when you placed the order for the inventory. Hope this helps.