V8 - Item receipts and the Item receipts list

Items are received into inventory by creating an item receipt.

Item receipts list

The Item receipts list contains the transaction records of inventory received at a location. 

The Create transfer and Create return to vendor actions enable you to generate transfer and RTV transactions directly from an item receipt.

For a general overview of how lists work in SOS Inventory, refer to List functions. See Action and batch action descriptions for more information about the actions available on lists.

Adding and editing an item receipt

To add an item receipt, use any of the following methods:

• On the Task bar, go to Quick add > Purchasing > Item receipt.

• Go to Operations menu > Purchasing > Item receipts, then select Add new.

• If you are receiving items associated with a purchase order, locate the purchase order on the Purchase orders list (Operations menu > Purchasing > Purchase orders). On the Actions menu dropdown, select Receive. SOS Inventory will generate an item receipt, importing relevant information from the purchase order.  

Refer to Item receipt field descriptions for explanations of the data fields.

An existing item receipt can be opened for editing by selecting the Edit action for that transaction record on the Item receipts list. Be sure to save your changes.

Partial receiving

Items on a purchase order do not have to be received at the same time.

If you receive only some of the items on a PO, create an item receipt for only those items. SOS Inventory will keep track of the number of items received relative to the number ordered by updating the received column on the purchase order automatically. Once a PO is fully received, it will automatically close out. When generating a second item receipt for a purchase order, you will need to modify the reference number to show that it is a follow-on receipt by adding a suffix, for example, -2.

Landed costs

The landed cost of an item is the complete amount that it costs you to get the item into inventory. The landed cost feature of SOS Inventory allows you to include costs other than the raw cost of the item. For example, you might wish to include shipping charges, customs charges, duties, etc. The landed cost feature of SOS Inventory is available only on the Pro Plan.

To enter landed costs, enter the additional items in the Other costs section of the item receipt. These are expense type items pointing to the Inventory Asset account as their expense account.  Costs entered in this section will be distributed across the inventory line items on the item receipt. Other costs are allocated proportionally according to the cost of each inventory line item on the receipt. For true landed costs to work correctly, the inventory asset account must match the inventory asset account of the inventory items listed in the items section of the receipt. It could get complicated if more than one asset account is used to define your items. It is recommended to use the same asset account for all inventory items purchased and all expense items entered as other costs.

If the vendor in the Other Costs section has a currency different from that of the vendor at the top of the item receipt, enter the Other Costs in the currency you pay that vendor. The system will use that day’s exchange rate for those entries.

Generating a bill using an item receipt

SOS Inventory helps you to avoid duplicate data entry. When you enter an item receipt, you have an option for how you want that item to appear in QuickBooks Online. In the Payment field on the item receipt, you have options to create a bill, credit card charge, check, or cash purchase in QuickBooks Online. You also have the option to create no transaction in QuickBooks Online, if you prefer to do everything manually. Bill is the default option.

In SOS Inventory, use the None option in the Payment field dropdown only if the vendor's invoice has not been included with the items received. Once the vendor's invoice has been received, you can edit the item receipt to make any necessary changes and select the appropriate payment method.

Variances

A variance in SOS Inventory is the difference between the actual cost of an item and the expected (standard) cost of an item. For example, let’s say that your standard purchase cost for a widget is $100. Now, let’s say that this week you found them on sale and bought 5 widgets at $95 each. Your variance is $95 - $100, which equals -$5 per unit, or -$25 total. That means that you paid $25 less for those 5 widgets than would normally be expected. A positive variance would indicate that you paid more than expected. You can find variances in SOS Inventory on the Purchase variances report (Operations menu > Reports > Purchasing > Purchase variances) and on an item’s transaction history.