- February 4, 2019
- Posted by: admin
- Category: Other, QuickBooks Enterprise
Get to know all about Enhanced Inventory Receiving (EIR)
With the advancement in technology our lives have become a lot simpler. In fact, our day to day activities become easier both at home as well as office. Recently, right from big to medium to small businesses are depending the cutting edge software called QuickBooks. This application has brought a revolution in accounting and bookkeeping. Not only does it save time but also effectively maintains the finances of the company. In this article we will discuss about the QuickBooks Enhanced Inventory Receiving.
This considered one of the best features in the QuickBooks Desktop Enterprise solutions and it is known to manage the complete new procedures of paying and receiving items.
QuickBooks Enhanced Inventory Receiving (EIR) is the best feature accessible by QuickBooks Desktop Enterprise V12. It changes past transactions when started. It manages the complete new process for receiving and paying the items. However, one needs to answer the below four questions to understand that this feature is valuable or not.
Following Questions are:
- Have you ever received a bill that covers multiple item receipts?
- Did you pay for the items before to receiving them and do not want to increase your inventory quantities?
- Do you grab multiple bills for one item receipt?
- Do you require 2 different receipts from accounts payable?
- Want to different items receipts from accounts payable?
Important Points to Remember:
- Create a backup of your company file before go to the following steps in this article (Recommended).
- Don’t forget it that Enhanced Inventory Receiving (EIR) is only the feature, that you can’t switch off once it gets turn on.
- Compress your company file if it is too large or heavy.
- We recommend you to conduct a test using a copy of your company file and analyse if it works with your business.
What happens after turn on EIR (Enhanced Inventory Receiving)?
- Once you turn on the EIR feature, the Bills do not increase the inventory items and also the bills that are generated from the items receipts no longer exchange items receipts.
- The Account Payable is not affected by the Item receipts anymore only if you receive a bill for an open item receipt.
- In case, you get a bill with different costs equated to the connected item receipt then the program spontaneously changes the item cost on the available item receipt
- When a new item is entered the QuickBooks Desktop calculates the inventory average cost. Every day the item receipts makes changes in the order of the inventory transactions which results in the average cost.
- After you turn on the EIR the process generates receipts for each bill in your company file that consisted of items and thereby there is a growth in the number of your transactions.
- It should be noted that the third party applications that affects the inventory may not be able work along with the EIR.
Limitations when using EIR:
- You are not to add any negative item to Item Receipts or Bills.
- You are restricted to add expenses to the receipts of items.
- In case you have generated any purchase order for non-inventory items then you have to receive them with an item receipt so as to close that purchase order.
- In EIR you will not be able to assign the items as ‘billable on the item receipts.
Accounting After EIR:
Once EIR is turned on, and you would try to get a separate receipt of an item from the bill for which you have to find the account for the value of the item received. The EIR QuickBooks Desktop developed an Inventory Offset Account which basically works as an opening account in between the item receipts and bills. As you enter the bill for an item receipt, the transaction amount which has been cleared from the Inventory Offset Account and credit to the payable account.
At the time you enter an item receipt QuickBooks Desktop generates the below journal entry:
|Debit||Inventory Asset Account|
|Credit||Inventory Asset Account|
At the time you enter an item Bill QuickBooks Desktop generates the following journal entry.
|Debit||Inventory Asset Account|
After Enhanced Inventory Receiving is turned on the QuickBooks Desktop produces these transactions unlike the common reports in QuickBooks used to look like.
For example: After turning on the Enhanced Inventory Receiving (EIR), Act. Cost shows 0.00 in job profitability detail report in a company file.
As EIR is turned on, the item used in generating bill is often related to the Inventory Offset Account rather than the account which was used at the initial set up of the item.
The default filter of job profitability detail report is Account: All income/expense and Name.
Therefore, add or change the filter in “Account” to Inventory Offset Account gives you the actual amount of Act. Cost column.
Ways to Activate EIR Feature
Following are the instructions to activate the EIR Feature:
- First thing to do is select the Edit Menu and then click on the select Item & Inventory.
- After this on the Company Preference tab click on Enable below Enhanced Inventory Receiving section
- Then you will get warning message and you have to click on Continue.
- You will get a pop-up message asking you to back up your company file.
- This may be a time consuming affair due to the size of your company file.
- Once done, QuickBooks Desktop will generate the review of all the modification that happened during the process.
Latest process for receiving and paying for items:
To pay and receive inventory are the two processes:
When EIR is turned off:
- Single transaction: Enter the bill the makes your inventory at hand larger
- Multi-transaction: To enlarge your inventory adds an item receipt and list a bill that is opposed to the item receipt.
After EIR is turned on
Two transactions must be recorded, you can list them in order either:-
- An item receipt to make the inventory close by larger.
- Or A Bill to pay the items. In order to check the exact value of your payable account you have to enter a bill opposed to an open item receipt. You must enter a bill as opposed to an open item receipt in order to see the exact value of your payable account.
Important: This procedure claims only to bills. Using Checks and Credit Card, you can still enlarge your inventory Amounts and pay for the items in one step.
In case you have any query regarding Enhanced Inventory Receiving our experts executives will be happy to help you anytime of the day. Feel free to dial our QuickBooks Enterprise Helpline Number .i.e. +1-800-880-6389 to get instant help with best service.