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August 28, 2025
Question

QBE - Enhanced Inventory Receiving - Problem with Credit Memo

  • August 28, 2025
  • 1 reply
  • 11 views

Ok we use QBE with Enhanced Inventory Receiving so the normal work flow looks like this...

 

PO for 10 widgets - inventory is 0

Bill for 10 widgets - inventory is still 0 (EIR does not receive inventory with bills)

Item Receipt for 10 widgets - inventory is now 10

Invoice for 10 widgets - inventory is now 0

 

So here is where it does not work...

 

PO for 10 widgets - inventory is 0

Bill for 10 widgets - inventory is still 0 (EIR does not receive inventory with bills)

Item Receipt for 7 widgets - inventory is now 7 because the vendor only shipped 7

Credit Memo for 3 widgets because the vendor billed for 10 - Inventory is now 4 (problem)

Invoice for 7 widgets - inventory is now -3 (problem)

 

So at first the solution seemed to be that Credit Memo's under EIR should be like bills and NOT effect inventory, but then I though about an product return and how that would work or not work...

 

PO for 10 widgets - inventory is 0

Bill for 10 widgets - inventory is still 0 (EIR does not receive inventory with bills)

Item Receipt for 10 widgets - inventory is now 10 but 3 are defective

Credit Memo for 3 widgets to return to vendor - Inventory is now 7 (so it works for now)

Invoice for 7 widgets - inventory is now 0 (correct)

 

But with the fix...

 

PO for 10 widgets - inventory is 0

Bill for 10 widgets - inventory is still 0 (EIR does not receive inventory with bills)

Item Receipt for 10 widgets - inventory is now 10 but 3 are defective

Credit Memo for 3 widgets to return to vendor - Inventory is still 10 (problem)

Invoice for 7 widgets - inventory is now 3 (incorrect because they were sent back to vendor)

 

So we need two things...

 

1. A fix for credit memo's to NOT adjust inventory when using EIR

2. A way to do a reverse item receipt for goods returned returned to a vendor

 

And this needs to be in a manner that normal QB users can do.  Yes, as an admin I can do journal entries and inventory adjustments but your typical user needs to be able to accomplish this all in a daily workflow. 

1 reply

Morgan_B
QuickBooks Team
August 28, 2025

Thanks for reaching out for support here in the Community, EdNewman.

 

I'd like to pass along some info in regards to your questions about Enhanced Inventory Receiving.

 

To prevent a credit memo from adjusting inventory when using Enhanced Inventory Receiving (EIR), you must use a non-inventory item on the credit memo instead of the actual inventory item.

 

Additionally, the correct way to reverse an item receipt for goods returned to a vendor in QuickBooks Enterprise is to create a vendor credit.

 

At this time, if you need to make further adjustments I recommend submitting feedback to the Product Development Team. This is the best way to make your requests known and the majority of product updates and feature releases come directly from these entries. This can be done directly through your account by clicking the Help tab then Feedback.

 

The following article offers even more info on managing Enhanced Inventory Receiving.

 

Please don't hesitate to reach back out if you have any other questions. The Community always has your back!