QuickBooks Enhanced Inventory Receiving(EIR) changes the way you receive inventory from vendors, and how you pay for that inventory. Once you turn EIR on, there isn’t a way to turn it off again, so in order to make sure it’s the right move for your company, here are some helpful tips and questions about it!
When you turn on EIR
- Item Receipts don’t increase Accounts Payable
- Bills don’t affect inventory
- Bills against item receipts no longer replace item receipts
Here are a few questions on how to determine if Enhanced Inventory Receiving is right for you
- Do you receive one bill that covers multiple item receipts?
- Do you receive multiple bills for one item receipt?
- Do your inventory counts become incorrect when you enter a bill and Quickbooks changes the date of the item receipt?
- Do you pay for items before you receive them and don’t want your inventory quantities to increase?
If you said yes to any of these questions, consider using EIR to improve your inventory receiving process.
Before you turn on EIR though, make sure you know a few more tips about the changes being made.
- Once you turn on EIR, you can’t turn it off again, unless you created a backup of your company file before turning on EIR(I strongly recommend doing so)
- QuickBooks changes past transactions, and that may take up to a few hours depending on how large your company file is.
- EIR separates item receipts from bills, which creates a new process for receiving and paying for items.
- If you receive a bill with different item costs compared to the item in your QB file, QuickBooks changes the item cost to match the item receipt
- If you haven’t received a bill for an open item receipt, the bill won’t show up in AP(accounts payable) as long as there is an open item receipt.
- Quickbooks will show the bill in AP once you receive the items and the open receipt is closed.
Average Inventory Cost:
- QuickBooks recalculates the average inventory cost each time there is a new item receipt created. These item receipts change the order of inventory transactions within each day.
There are two ways to receive and pay for items.
1. Without EIR, you can receive and pay for inventory in two ways.
- First option: You can enter a bill for inventory items that increases your inventory on hand.
- Second option: You can enter an item receipt to receive the inventory, then enter a bill against the item receipt.
2. With EIR, you must enter two separate transactions.
- You must first enter an item receipt to receive the items.
- To do so, type in the vendor box or use the drop down to select a vendor.
- When you choose the vendor you want to receive items against, there will be a popup asking if you wish to receive against open PO’s.
- Say yes and there will be a list of Purchase Order numbers to select which orders you want to receive against.
- Next, select enter bill from the item receipt page to pay for the items you just received
- To enter the bill, you will need to reselect the purchase order number/numbers you selected from the item receipt page.
- Then you are ready to pay the bill.
Once you select pay bills, you can choose the bill you just recorded, and click on Pay Selected Bills on the bottom right of your screen.
That’s all about EIR and receiving/paying for items! 🙂