Item Receipt and Vendor Bill from the same Purchase Order added twice on Quantity on Hand to the Item.

Problem/Business Requirement/Unique Question:

Item Receipt and Vendor Bill from the same Purchase Order added twice on Quantity on Hand to the Item.
 
Symptoms/Details of Business Requirements/Any Additional Information:
 
- Enter a purchase order with multiple inventory items, receive all items and enter a bill then remove one item.
 
- Go back to the bill, edit it, add back the item you removed above.
 
- Go to the Inventory Valuation Detail report and check the item, notice that the item receipt and the bill both increased the quantity of the item.
 
- In this scenario, the quantity on hand for the item is overstated since the item receipt and the bill increase the quantity on hand of the item. 
 
- If the purchase transaction starts with a purchase order remember that the GL Impact for an item receipt is:
 
--- Dr. Inventory Asset xxx
--- Cr. Inventory Received Not Billed xxx
 
- While for a bill coming from a purchase order the GL Impact is:
 
--- Dr. Inventory Received not Billed xxx
--- Cr. Accounts Payable xxx
 
- It is clear from the GL impact above that only the item receipt increases the quantity of an item and not the bill.
 
- The problem only shows on a few items in the bill.
 

Solution/Workaround/Gotcha/Recommendation Details:

 

The reason why the bill increases the quantity on hand, even if it is coming from a purchase order, is because when you create the bill you removed some items. Then you edit the bill back and add the items. In effect, NetSuite is taking this as items entered in a stand alone bill which affects the Inventory Asset (quantity on hand) at the same time Accounts Payable.

 

To resolve this problem, it might be best to remove the affected items from the bill, then click the "Bill" button from the purchase order and create another bill. If you don't wish to have two bills for the PO, then you should delete the original and bill it again.