Since Quickbooks uses the "average" method to calculate the cost of your inventory, the entry can be completed as it truly is. In other words, record 500 items received at the actual cost and record 500 items received at zero cost.
Let's assume that you order from your supplier using a Quickbooks purchase order. You would create a PO for 500 pieces and send this off to your vendor.
Quickbooks will average the cost of these 1000 pieces. In the sample screen below you can see that even though your PO said the price of the doorknobs was $15.00 each, Quickbooks has averaged the cost out over various purchases at $9.64. In addition, note that the available quantity reflects the full 1000 pieces received.
This method will insure that both your physical quantity and your actual cost are recorded correctly.
This material is for informational purposes only and not intended and financial, legal or tax advice. Please consult your finance, legal or tax professional to confirm the accuracy of all information. Quickbooks is a registered product of Intuit.
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