Entering Bills for Received Inventory

1. Click on the Bills on the main menu
2. Click on the 'New Bill' hyperlink
3. Select the date of the bill.
4. Select the name the supplier whose bill you wish to enter.
   • You will notice that the Link To Shipment Receipt drop-down list populates when a supplier with existing unbilled Shipping Receipts is selected.
5. Select an item from the Link To Shipment Receipt drop-down list or select a PO , then click on create item to have entire PO be brought into as a bill.
6. You will notice that the line item fields populate with the details of the item received. The pricing is taken from the Purchase Order against which the item was received.
7. If the pricing on your bill differs from what was entered on your purchase order, then enter it now.
8. Click the Submit button to save the bill line item.

Repeat the above steps to enter all items on your bill. You can mix linked items (as the one is above) with other types of items on a bill.
When you are finished entering your bill's items, click the Done hyperlink. This will take you to a screen that allows you to review then Post, or Post & Pay the bill.

 

Shipping Charges

Often, shipping charges need to be applied to received materials. That way the shipping charges, which might otherwise be posted to an expense account, get added to the value of the materials; the charges then become an integral part of the firm's Cost of Goods Sold.

 

Charges from the Supplier

If the shipping charges are on the same bill as the materials, then do not enter the charges as a separate line item if you want to include these costs in your inventory values. Instead, do the following:

• Adjust the material costs by the amount of the charges when you enter the individual line items on the bill.

Charges from a Carrier

If the shipping charges are from a company other than your supplier, then you will need to enter them on a separate bill -- a bill related to that particular supplier of shipping services. In order to allocate these charges to your inventory value, we suggest the following procedure:

1. Expense the charges to your usual Shipping Charges expense account when you enter the bill from the carrier.
2. Use a manual General Ledger posting to allocate the charges to the related inventory sub-account(s). 
3. or enter a bill and have the bill cost be allocated to the shipment receipt. See here.