How to create an Item Receipt?

How to create an Item Receipt?

Item Receipt


The Item Receipt document records items, their quantities, and time of arrival with goods that were ordered using a purchase order. In CustomBooks™, Item Receipts are generally created when a shipment of items ordered from a vendor arrives. The creation and posting of this document adds the items to inventory and makes them available for sale, manufacturing activities, or other inventory related actions. If Item Receipts are not used, the inventory transactions occur when the Bill for the Purchase Order is created and posted.

There are two prerequisites in using Item Receipts in CustomBooks™:

1) The feature must be enabled in settings; and
2) the Use Item Receipt checkbox must be checked on the Purchase Order.

Enabling Item Receipts in CustomBooks™


  1. Navigate to Settings → Purchase Settings.
  2. Check the checkbox next to Use Item Receipt.
  3. Click Save and Close.
Enabling Item Receipt on Purchase Settings

Using Item Receipts


To use Item Receipts, click the checkbox next to Use Item Receipts on the Purchase Order. If you do not wish to use an item receipt for a PO, uncheck the box before posting the PO.


The Item Receipt Checkbox on a Purchase Order.

Receiving Goods (in full, or partially) with an Item Receipt


  1. From the Purchase Order, click the Generate button and choose Item Receipt.
  2. The Vendor, Addresses, and Items are copied from the Purchase Order. The Date pre-fills with today’s date. Change any of these if necessary.
  3. Add or change  Project / Class if needed.
  4. Verify the quantities received (a physical count) vs the amount ordered (listed on the line item in the quantity field).
    • If all items were received, click Post and Close.
    • If all items were not received in full, change the quantities to match what was received and click Post and Close.

If the later of the two scenarios occurs the last step, the Item Receipt will remain Open and the Purchase Order will show Partially Received in the status column. Once the rest of the ordered items are received, create a new item receipt (it will have a later date than the first) and once Posted, the statuses of Purchase Order and Item Receipt documents will change to Closed.



A Purchase Order that shows Partially Received status


A Purchase Order that shows the number of items received and backordered

Under and Over-Receiving


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 on 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.

Under and Over-Receiving must be enabled by clicking the checkbox labeled Backordering at Quick Menu → Settings → Inventory tab.

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


Recording a Bill creates the following transactions in the General Journal:

  • Debits : Expense Account for non-inventoried items or inventory, for inventoried items.
  • Credits : Accounts Payable.

    • Related Articles

    • Where are item receipts? I can't find them anywhere.

      Enabling Item Receipts Item Receipts need to be enabled in Settings. To enable them, navigate to Quick Menu → Settings and click the Purchase Tab. Check the Use Item Receipts checkbox. Enabling Item Receipt on Purchase Settings Using Item Receipts ...
    • Cash Receipts

      Cash Receipts A Cash Receipt records a payment made by a customer. In CustomBooks™, a Cash Receipt is used for recording the following kinds of transactions: payments received from a customer which may include partial payments and payments for ...
    • Print lot labels from Item Receipt

      Introduction This extension allows users to print labels with lots and barcodes for received items directly from the Item Receipt screen. Installation Please see the article on Managing Extensions for installation instrucitons. Usage On the item ...
    • Item Last Costs

      Item Last Costs The item last cost is the most recent cost for that item. It is derived from the cost on the bill received for a purchase order. Inventory adjustments, item receipts and assembly builds also update item last costs. For more ...
    • Item Categories

      Item Categories Item Categories allow you to group products and services for the purpose of organization, pricing and reporting. It may be used in conjunction with the Price Matrix to create a complex pricing structure or to simplify the entry of ...