- November 14, 2019
- Posted by: Luna
- Category: Uncategorized
QuickBooks enhanced inventory receiving is also called EIR. This is a useful feature for QuickBooks Desktop Enterprise V12. This feature is only for QuickBooks Enterprise software applications. It replaces the previous transaction when it started. And this EIR manages or create an all-new process for receiving and paying items.
In QuickBooks Desktop Enterprise, this feature apart from the Item receipts Bills.
Enhanced Inventory Receiving (EIR) makes better your receiving and paying methods for lists in QuickBooks. Once you turn on this EIR features, after that you can not turn off it.
If we used all the steps to receive the inventory in QuickBooks, then flow shown like this:
Purchase Order -> Item Receipt -> Bill
Setup Location Of The Preference Setting For The EIR:
The picture above shows the setup location of the preference setting for the EIR. you just need to read carefully this setting:
When you use this feature, then go through the inventory purchasing process.
- First of all, you just need to make a purchase order.
- After that When the customer received, the second step is the make or create the item receipt.
- Once the seller is selected for the item receipt.
- After that QuickBooks will provide a list of open purchase orders for the sellers, and also allows you to choose the Suitable one.
- Then enter the item and its quantity from a purchase order in the item receipt.
- If all goods are not received in one shipment, then it can change the quantity at that time and only entered a partial shipment upon receipt of the item.
- After that, this leaves the purchase order partially open as compared to receiving the remaining order.
- NOTE: If you use an advanced Inventory of EIR for the site and lot tracking, then those values need to be entered at this level.
- After completing this procedure, you can save the item receipts.
- After that, it is available on your device and also ready for the sale.
This is the place where QuickBooks Enhanced Inventory Receiving(EIR) starts the way to change the QuickBooks account for the value of the inventory.
Why use QuickBooks enhanced inventory receiving (EIR)
- When we use or turn on this EIR feature, at that time bills do not increase in inventory Items and Bills created from Item Receipts no longer replace Item Receipts.
- Item Receipts no longer affect Accounts Payable unless you receive a Bill for an open Item Receipt.
- If you receive a Bill that has different costs compared with the connected Item Receipt, QuickBooks will change the item cost on the Item Receipt, even if the Item Receipt is in a closed period.
- QuickBooks desktop again calculates the inventory average cost & every time a new item receipt is added. These item receipts change the order of inventory transactions every day and sometimes get in a small rounding error for the average cost.
- An Item Receipt is created for every Bill in your company file that included items, increasing the number of transactions.
- when the inventory is affected at that time third-party applications do not work properly.
Some Limitations of the QuickBooks enhanced inventory receiving (EIR)
- You can not add or enter the negative items in Item Receipts or Bills.
- You can not add expenses on item receipts.
- When you made a purchase order for a non-inventory item, then you need to receive them with the item receipt to close the PO.
- And you do not assign or mark on the receipts items as billable.
Accounting Before EIR
A feature of EIR is that QuickBooks creates a new clearing account, inventory offset account, These inventory offset accounts work just like an opening account. It holds the value of the receipt until you file the bill. This account creates an EIR of QuickBooks desktop software. When bills and item receipts are recorded, then the amount of these transactions are removed from the offset account.
When you add the items in item receipt or this time QuickBooks enhanced inventory receiving made the following entry:
|Debit||Inventory Asset Account|
|Credit||Inventory Offset Account|
when you add the bill in receipts at that time QuickBooks Desktop made the following entry:
|Debit||Inventory Offset Account|
The way Of QuickBooks makes these transactions after turn on the desktop EIR, but The common reports may do not create or look the same way they use to.