There are three basic steps to receiving inventory. Entering items into the receiving file (either directly or by receiving a purchase order). Printing pricing labels. Updating Inventory (moving items from the Receiving file to the inventory). This is the basic process for receiving inventory. Editing and adding items directly into the inventory should be avoided except for items that need to be put directly into the inventory (e.g., labor items, gift certificates, freight items). The advantage to putting items into inventory through receiving is that: it allows you to quickly print the correct quantity of labels for items being received, it gives you a chance to edit the items being received so that you do not incorrectly add items or quantities to your inventory, and it keeps a record of when items were received and from which manufacturer or vendor the items were received.