Understand the inventory impact of vendor bills and credits

Vendor bills and vendor credits change inventory quantities and values when their item lines use inventory products and operating locations. The item, quantity, cost, and location on each submitted transaction determine which item-location balance is increased or reduced and which inventory accounting entries are posted.

Vendor bill inventory impact

A draft or pending-approval vendor bill does not change inventory. When the bill posts, each standalone inventory-item line increases the on-hand quantity at its selected location by the line quantity. A line linked to a purchase order does not create inventory impact from the vendor bill.

Withdrawing approval removes that inventory activity until the bill posts again. Updating an eligible draft changes the inventory activity that will be created when the bill posts. Deleting a draft has no posting inventory effect, and voiding a posting bill reverses its inventory increase.

Vendor credit inventory impact

When a vendor credit posts, each inventory-item line decreases the on-hand quantity at its selected location by the line quantity. Voiding the posting credit reverses that decrease.

Use the correct inventory item, quantity, and location before submitting either transaction. These values determine which item-location balance is updated.