Item Receipts in CustomBooks™

Item Receipts in CustomBooks™

The Item Receipt document in CustomBooks™ is essential for recording the receipt of goods ordered using a Purchase Order. It captures details such as items, quantities, and the time of arrival, ensuring accurate inventory tracking.

When created and posted, Item Receipts add the received goods to inventory, making them available for sale, manufacturing, or other inventory-related actions. Without Item Receipts, inventory transactions occur only when the Bill for the Purchase Order is created and posted.

Prerequisites for Using Item Receipts

To use Item Receipts in CustomBooks™, the following prerequisites must be met:
  1. Enable the Feature in Settings:
    • Navigate to Settings > Purchases Settings.
    • Toggle the Use Item Receipts checkbox.



    WarningNote: Once an Item Receipt has been created, this feature cannot be disabled.

  2. Activate Item Receipts on the Purchase Order:
    • Check the Use Item Receipt box on the Purchase Order.
    • Uncheck the box if you prefer not to use Item Receipts before posting the Purchase Order.


Viewing the List of Item Receipts

To view the list of Item Receipts:
  1. Navigate to Purchases > Item Receipts.
  2. From the Item Receipts List View, double-click the desired Item Receipt to open.


From the Item Receipts List View, you can:
  1. Create or copy Item Receipts.
  2. Generate Bills or Purchase Returns.
  3. View related Transactions, General Journals, Inventory Journals and Audit Logs.
  4. Attach files to the selected Item Receipt.
  5. Export the Item Receipts List to Excel, PDF, or other formats.
  6. Manage columns: add, remove, or reorder.
  7. Refresh the Item Receipts list.
  8. Create multiple custom views using: Filters, Sorting, Ordering, Conditional Appearance Settings.

Viewing an Individual Item Receipt

To view a specific Item Receipt:
  1. Navigate to Purchases > Item Receipts.


From the individual Item Receipt view, you can:

  • Edit the Item Receipt.
  • Generate a Bill or a Purchase Return document.
  • View related details, including Transactions, the General Journal, the Inventory Journal, and Audit Logs.
  • Attach files to the selected Item Receipt.
  • Reload/refresh the Item Receipt.

Creating a New Item Receipt

Bill Payments can be created manually or generated from a Purchase Order.

To create an Item Receipt:

  1. Navigate to Purchases > Item Receipts.

  2. Click Create > New or Copy an existing Item Receipt.

  3. Fill in the following fields:
    Main Tab:

    • Vendor: Select from the drop-down list.
    • Address: Specify the vendor's address.
    • Item Receipt Date: Enter the date of the item receipt.
    • Item Receipt Number (Ref #): Optional.



  4. Receiving Tab:

    • Shipping Method: Enter the shipping method or courier.
    • Receipt Date: Enter the receipt date.
    • Ship To: Specify the location or warehouse where the goods are being received.



  5. Project and Class Tab:
    Enter the applicable Project or Class information.



  6. Memo Tab:
    Add an internal memo (for internal reference only).



  7. Line Details Table:

    • Click Add to include product line items.
    • Select the Item from the drop-down list.
    • Enter the Received Quantity.
    • Enter the Lots/Serial Number, if applicable.
    • Enter the UoM (Unit of Measure).
    • Enter the Cost.
    • Specify the Ship To Location.
    • Customize details such as Receipt Date, Project, and Class for each line.



  8. Save changes by clicking Save or Save and Close.


Creating an Item Receipt from a Purchase Order

If the Item Receipt is associated with a Purchase Order:
  1. Navigate to the Purchase Orders List View. Go to Purchases > Purchase Orders.
  2. Select the relevant P.O. record.
  3. Click Create > Item Receipt. Fields will auto-fill based on the selected Purchase Order or Item Receipt.

For a step-by-step walkthrough, check out the video below.
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Under-receiving and Over-receiving (Backordering)

There may be times when your vendor will send more or less than the quantity that was ordered on the Purchase Order. The system will allow for over and under-receiving on both the item receipt and the bill, so there is no need to change the original quantity on the Purchase Order in this event.

Under-receiving is when the total quantity received on the item receipt or the bill is less than originally ordered on the Purchase Order and there is no plan to receive the balance. In this case, close the Purchase Order by clicking the Status and choosing Closed.

Over-receiving is when the total quantity received exceeds the item receipt or the bill exceeds the original amount ordered on the Purchase Order and there is no plan to return the excess to the vendor. In this case, indicate the quantity received on the Item Receipt or the Bill and the Purchase Order will close automatically.

Info
To enable Backordering: Navigate to Admin Panel > Inventory Settings > toggle the 'Allow Under-receiving and Over-shipping' checkbox.


Item Receipt Status

Draft: Item Receipt has been created and saved, but is not complete.
Not Yet Billed : No items from the item receipt have been billed.
Partially Billed: Some items have been billed all items have been received.
Billed: All items have been billed.

Accounting for Item Receipts

Recording a Bill from an Item Receipt generates the following journal entries:

  • Debits: Expense Account (non-inventory items) or Inventory Account (inventory items).
  • Credits: Inventory Receipt Not Yet Billed Account or a Purchase Liability Account.

Item Receipts in CustomBooks™ streamline inventory management, ensuring accurate tracking and timely billing. By following the steps above, you can effectively utilize this feature to enhance your purchasing and inventory processes.

For further assistance, refer to our Help Center or contact CustomBooks™ Support.