Choosing the warehouse on a bill

When you create a bill with inventory items, you must choose a warehouse — the location where those items will be received and held. This ensures your inventory records are accurate by location.

Before you start

• Your organization has warehouses set up (at least one default)
• You are adding inventory items (products) to the bill, not just services or expenses
• You know which warehouse will receive the goods (e.g., Main Store, Branch Office, Distribution Center)

Steps

1. On the bill form, look for the Warehouse field (usually near the top or in a header section).

2. Click the Warehouse field and choose your location:

   • Select from the dropdown list
   • If you have only one warehouse, it is usually pre-filled

3. When you add inventory items:

   • Each item line will be recorded as received at the chosen warehouse
   • The warehouse's inventory balance increases by the line's quantity
   • If you need to split items across warehouses, you must create separate bills (one per warehouse)

4. If you later need to transfer items between warehouses, use the Inventory Transfer feature (separate from bills).

Accounting impact

• The bill creates a liability (Accounts Payable) to the vendor
• The chosen warehouse's inventory account is debited for the cost of items received
• Ledger entries are tagged with the warehouse location for reporting and reconciliation

Tips & common mistakes

• One warehouse per bill — you cannot split a single bill across multiple warehouses. If goods are arriving at different locations, create a separate bill for each warehouse or transfer items after receipt.
• Receiving without a warehouse — if you forget to set a warehouse before adding inventory lines, the bill will save but the items won't be recorded in inventory; you'll have to correct it later.
• Default warehouse — your first/main warehouse is usually the default; confirm it is correct before saving.
• Multi-location purchases — if you buy from the same vendor but receive at different sites, create bills separately (one per warehouse) to keep records clear.