Inventory items on Purchase Order

When entering a P.O. for Vendor/Supplier and it is an inventory item, does it remove from Inventory when processing that order?

Or does it remove when it has been invoiced.

Our current process for inventory stock is done the following ways:

  -Sales (Parts personnel) receives (process) incoming stock through Inventory Adjustment module 

  -A/P processes invoices with received stock "without" physically entering "stock".  I use the description area to put stock items.

Is there there a better way of processing stock items without doing (2-steps) above

See below

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  • Generally Purchase Orders are for indicating what item and quantity is ordered and what price you expect to pay for each item.  The program does not record a journal entry yet for any item to be purchased.

    A Purchase Invoice will record the increase in quantity of each item purchased and increase the cost of those items in stock if you use an inventory item code when recording the purchase invoice.

    A Sales Invoice will record the reduction of quantity in stock for each item sold and decrease the cost of those items in stock as well as increase the revenue for those items sold, if you use an inventory item code when recording the sales invoice.

    From the message you posted, it looks like you are doing it the hard way and double-entering the information for purchases which may or may not be doubling your expenses, depending on the inventory adjustment entries.

  • in reply to Richard S. Ridings

    thank you for your help! 

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