The Purchase module features the following processes:
Purchase Order - allows user to control and maintain stock and/or service orders from Suppliers.
Purchase Invoice - an itemised document indicating the quantity and price of goods and/or services provided by the Supplier. This process allows user to register and maintain Supplier’s Invoices.
Stock Received - allows user to input purchased Stock into the database. The number of stocks purchased does not need to tally against the number entered into the system. The user has the option to store the purchased stocks into a single or multiple locations.
Credit Note - allows user to correct errors made in a Purchase Invoice which has already been processed in the system. A Credit Note from the Supplier should be provided for input in the system. This is considered a Negative Invoice.
Unstock - allows user to remove item/s in the database in the event of short-shipped goods, damaged or faulty goods, or shipped goods that need to be returned to the supplier.
Attachment and Activity Logs – any documents printed or emails sent through the Purchase Order are saved in the Attachment tab. All of the activities done by the user from the start of making a new Purchase Order are logged in the Activity Logs tab.
Manual Journals – allows user to adjust landing cost of the Purchase items when associated costs must be included in the final cost of unit.
The purchase module allows:
Create purchase orders to suppliers.
Receive stock into the warehouse.
Process supplier invoices.
Add credit notes.
Create manual journals to purchase orders. Manual journals are used to arrived at landed cost and can be related to external freight invoices as well as customs charges.
The Purchase module is the first module available in the navigation panel. It also contains some additional features that allow to:
- view all the existing purchase orders (Purchase -> Orders -> View All),
- reorder level of stock (Purchase -> Orders -> Reorder Stock )
- and reorder backordered stock (Purchase -> Orders -> Reorder Backordered Stock).
It also allows to:
- create new suppliers (Purchase -> Suppliers -> New Supplier),
- view existing suppliers (Purchase -> Suppliers -> View All),
and add bulk payments for your suppliers (Purchase -> Suppliers -> Bulk Payment).
Some useful terminology and hints
*Supplier - This is the name of the Supplier you are ordering from. Type the Supplier’s name to search for an existing record or select from the list by clicking the dropdown arrow. It will automatically populate the Supplier’s information – *Supplier Name, Contact, Phone, Terms, Vendor Address, and *Tax.
Alternatively, if the Supplier’s profile is not in the list, click ‘Add new Supplier’ in the *Supplier field and a new window will ask user to save details of the new Supplier. Do the same for the Contact field by clicking ‘Add new Supplier Contact’, and a new Vendor Address by clicking ‘Add new Supplier Address’ in the Line 1 field of Vendor Address. Any Comments added to the Supplier information will reflect in the Notes area when creating a Purchase Order or Purchase Invoice. This is to remind user about any special actions to perform for a Supplier (E.g. “This supplier requires pick up only”).
Once saved, the Supplier information will be available for use in your future Purchase Orders and Purchase Invoices. It will automatically populate the Supplier’s information – *Supplier Name, Contact, Phone, Terms, Vendor Address, Note and *Tax.
There are three *Types of addresses: ‘Billing’, ‘Shipping’, and ‘Business’. If ‘Billing’ is selected, it will appear as the Vendor Address in your Purchase Order form.
Note - Enter a note for this Purchase Order in the Note field when necessary. All notes are for internal use only and will not be printed on the Purchase Order or Purchase Invoice.
Input Method - Selecting Stock First mimics the scenario when client receives stock before receiving Purchase Invoice. Selecting Invoice First does it in opposite – Purchase Invoice maybe received earlier or at the same time with the stock.
Required By – This is the date the Purchase Order is Required By. Enter by selecting the date in the calendar
Default Account – This is the Inventory Control Account or Job Costing Account. Click on the dropdown arrow to choose what type of account to use as default account for Purchase Invoice items. You may use different accounts for different line items.
Tax - mandatory tax rule field, defines default tax that will be applied to all line items if line item doesn't have tax rule set at product/service level. Product/service settings have precedence over document level tax settings.
XXX Units per YYY - conversion rate editable field. DEAR will pre-set conversion rate but user has an option to provide another rate.
Blind Receipt - Click on this option only if user needs to create an Invoice without placing a Purchase Order (See also How Create a New Purchase Invoice from scratch).
*Location – This is the location that you are ordering for. Click on the dropdown arrow to choose from the existing list.
Location can be warehouse, shop or lot. Business can decide how many locations to use.
Alternatively, user can save a new *Location by clicking ‘Add New Location’ in the *Location field if necessary.
Shipping Address – This is the shipping address of selected *Location. Click on the dropdown arrow to choose from the existing address list or DEFAULT options. Shipping Address is a mandatory field if integration with Shipstation software is enabled.
Alternatively, user can save a new Shipping Address by clicking ‘Add New Address’ in the Line 1 field of Shipping Address option if necessary.