Processing a Purchase

Processing a purchase is the main purpose of the Purchase module in DEAR. Through the Purchase module, you can create purchase orders and link supplier invoices and stock received to the relevant purchase order. 


This article covers the purchase process from ordering, processing invoices and receiving stock. Refunds and discounts applied after an invoice has been authorised are processed by using credit notes (negative invoices), this function is covered in Purchase Credit Notes and Refunds


For orders without stock items (i.e. orders of only services or non-inventory items), see Service Purchases

For purchase orders that will be received/invoiced as multiple partial orders, see Advanced Purchases.  


Prerequisites:


Table of Contents:


Create a Purchase Order

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Create a new purchase by either navigating to Purchase -> New -> Purchase or Purchase -> Purchases and clicking +


The purchase screen is made up of two parts. At the top is the document header, which contains supplier information and order functions (Undo, Void, Print, and so on). Below is the purchase order screen, which has tabs for each stage of the purchase process (Order, Invoice, Stock Received, and so on). 


You may have to process a purchase without a purchase order. In this case, fill in the document header but check Blind Receipt to skip the order stage of the purchase process. 


Fill in the document header

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The first step in creating a new purchase order is to fill in the fields of the document header. This will contain the supplier and shipping details.


Filling in the document header:

  1. Select a supplier from the dropdown list or by typing their name. We recommend you set up suppliers before creating purchase orders. NOTE: You can create a new supplier from the purchase order screen. Click + to be prompted for supplier details.
  2. Check and edit the details. Many fields in the document header will be auto-filled from your supplier information but can be manually overridden. Check that the supplier details are correct before proceeding. 
  3. Select the Stock First or Invoice First input method. This will change the order of the Invoice and Stock Received tabs on the purchase screen. The default option for this setting can be changed in Settings -> General Settings -> Purchase process customisation
  4. Add an optional note. This field is searchable and can be used to include reference codes (such as related purchase order/sale order numbers) for quick retrieval when searching purchase orders. 
  5. Check the Blind Receipt box if you wish to process a purchase without a purchase order. This will remove the Order tab where items are added to the order; your workflow will then start with Stock Received or Invoice depending on your chosen input method. 


Add items to a purchase order

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Once the document header has been correctly filled in, you can add items to your purchase order. If you have selected the Blind Receipt option, you will add items to your Stock Received or Invoice tab first instead. 


There are two fields where items can be added. In the upper field, you can add stock items to the order. The lower field is for additional costs – any non-inventory or service items (e.g. shipping, handling) that need to be added to the order. 


Adding items individually

  1. Select products from the dropdown list or by typing their name. We recommend you set up products before creating purchase orders. NOTE: You can create a new product from the purchase order screen. Click Add a New item in the product dropdown field to be prompted for product details.


Adding multiple product variants

This option can be used to quickly add multiple product variants in a product family. This option will be unavailable if Blind Receipt has been selected. 


  1. Select +Family.
  2. Select the Product Family from the dropdown list or type to search.
  3. Product option fields (up to 3) are listed in the pop-up window. Select variant options from the dropdown fields. More than one option can be selected in each field. For this example, the options are Colour and Size.
  4. Fill in the quantity field – this can be changed later. 
  5. Fill in the price field. Leaving the price as 0 will use the last purchase price. 
  6. Click Add Products. Each variation in the product family will be included as its own order line in the purchase order. The price and quantity of each product variant line can be edited individually. 


Import item details via CSV

Purchase order lines can be uploaded from a CSV file. 

  1. Select Import.
  2. Follow the instructions on the pop-up window. 
  3. Upload the chosen CSV file. Once uploaded, order lines can be edited on the purchase screen if necessary. 


Scan item barcodes

If you have a compatible USB scanner attached, you can add products to a purchase order by clicking Scan and scanning their barcodes. 

There are four scanning options:

  • Automatic allows scanning a product one at a time. 
  • Inventory allows dumping barcodes from scanner memory using the scanner's Inventory mode (most scanners have this capability).
  • Manual entry is allowed through the Manual option. 
  • Serial allows scanning of products with serial numbers.


Verify an Order

Compare the ordered item quantity with your inventory stock levels using the Verify an Order function. 


Additional Costs

Additional costs can include any non-stock item or service, such as training, shipping, insurance, etc. Add them by clicking + or Add more items in the lower section of the purchase screen order tab. 


Check/edit purchase order line details

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Once added, all purchase order lines can be manually edited. Check that these fields are correct before proceeding. 

  • Quantity.
  • Price. Price fields are pre-filled with the last supplier price used, or a fixed supplier price for a product can be set through Inventory -> [selected product] -> Suppliers tab. 
  • Supplier SKU. Enter a supplier SKU for reference purposes if applicable (optional). 
  • Discount. Indicate if a discount has been added to the purchase order line (optional).
  • Tax Rule. This field will be pre-filled by the tax status indicated in the document header or if applicable, the tax rule set at the product level. It can be manually overridden. See Tax Rules for more information. 
  • Purchase order memo (optional). This will be shown to the supplier on the purchase order. 


Save and authorise a purchase order

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Once all the order lines have been added to the purchase order, it can be authorised by clicking Authorise. This will process the purchase order and include it in your accounting reports.


To save a draft, click Save in the top left or bottom of the screen. This will save the purchase order for later authorisation without having it be picked up by your accounting reports.


Deposits/Prepayments

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Once a purchase order has been authorised, you can optionally add a supplier deposit to use against the invoice. See Supplier Deposits for more information. This field is NOT for regular payments – regular payments are added when processing a supplier invoice


NOTE: If using Xero as your accounting system, ensure Xero payment settings are set to Synced both ways or Pushed to Xero. QuickBooks Online payments are set by default to sync both ways. Some users prefer to entirely manage their payments through their accounting system. If this is the case, you can leave this section blank, the prepayment details will be imported from your accounting system and applied to the order once a prepayment is made.


Adding a supplier deposit:

  1. On an authorised purchase order, click +Supplier Deposit to open a pop-up window. The deposit account field is pre-filled with the dedicated supplier deposits/prepayments account. Select a bank account to make the payment from and enter the amount.

  2. The supplier deposit will be shown in the deposits section, ready to be used against the invoice total. 


Send to the supplier

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After the purchase order is authorised, there is the option of saving it to your computer to print or emailing it directly to the supplier. Most DEAR Inventory documents are generated in PDF format.


Save and print a purchase order:

  1. Click Print -> Purchase Order and print and/or save as a PDF. 


Email a purchase order:

  1. Click Email -> Purchase Order. The purchase order is automatically attached as a PDF. 
  2. Fill in the remaining email fields and click Send.


Process a supplier invoice

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For purchases without a purchase order, check Blind Receipt in the document header to skip the Add items to order stage and start at the Invoice or Stock Received stage. 


  1. Select the Invoice tab of the purchase order. If you have chosen Stock First as your input method, you must complete Input Received Stock before processing the supplier invoice. 
  2. Enter an invoice number and invoice date. The due date field is calculated by applying the payment terms date in the document header to the invoice date. 
  3. Add the invoice lines. If you have completed a purchase order, you can copy lines from the purchase order by clicking +Copy. Alternatively, you can add items manually by clicking + or Add more items, import invoice lines from a CSV file or scan item barcodes.
  4. Enter additional costs. These can be copied from the purchase order by clicking +Copy from order or manually entered. 
  5. Check the total and enter it into the validation field at the top-right of the screen. 
  6. Authorise the invoice to continue. If you have an unused supplier deposit associated with this purchase, you will be asked if you want to allocate it to the invoice. 


Once the invoice is authorised the Stock tab becomes available (if your input method is Invoice First). The invoice will be synced to your accounting software the next time you choose to sync.


Payments 

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Once an invoice has been authorised, you can apply payments to the invoice. Some users may prefer to handle their payments entirely through QuickBooks Online or Xero. 


NOTE: If using Xero as your accounting system, ensure Xero payment settings are set to Synced both ways or Pushed to Xero. QuickBooks Online payments are set by default to sync both ways. Some users prefer to entirely manage their payments through their accounting system. If this is the case, you can leave this section blank, the payment details will be imported from your accounting system and applied to the order once a payment is made.


To use a supplier deposit as payment:

  1. If you have an unused supplier deposit associated with this purchase, you will be asked if you want to allocate it to the invoice upon authorisation. If you choose no, you can still use the supplier deposit by following the next steps. 
  2. Click +Use Supplier Deposit. All supplier deposits for this supplier will be listed. Select the deposit or deposits you wish to use to show the new total. 
  3. Click Add & Save to apply to the invoice.

  4. Supplier deposit will be allocated to the invoice. Continue to apply the payment to the invoice if there is still an outstanding balance.


To apply a payment to an invoice:

  1. Use +Payment to enter payment details until the invoice is fully paid. Save and continue.


Input received stock

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Stock received is checked against the purchase order and then added to your stock levels.


Receive a full delivery

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To input stock received:

  1. Navigate to Purchase -> Purchases.
  2. Select the purchase order related to the delivery.
  3. Select the Stock Received tab of the purchase order.

  4. Enter the stock lines. If you have completed a purchase order/invoice, you can copy the lines from the purchase order/invoice by clicking +Copy. Alternatively, you can add items manually by clicking + or Add more items, import invoice lines from a CSV file or scan item barcodes.
  5. Stock can be received in two locations if required. To do this:
    1. Click or Add new items to add a new line and type to search the item name. 
    2. Choose the stock location.
    3. Manually change the stock quantities for each line.
  6. Check the Received box for all lines.
  7. Click Authorise for the stock levels to be updated.
  8. Click Mark as Received to confirm no further stock will be received, close the order and remove the order from the pending orders list.


If your input method is stock first, authorising stock received will make the invoice tab available. 


Receive a partial delivery

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Sometimes a purchase order is made and sent to a supplier; however, the supplier cannot fulfil the entire order at once. In this case, the supplier will make multiple deliveries to fulfil a single purchase order. To receive a shipment with multiple deliveries, convert the purchase order to an Advanced Purchase. Follow the link for more information.


Attachments, Logs & Attributes

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Documents can be attached to the Purchase Order in the Attachments tab, and any documents printed (purchase order, purchase invoice, etc.) or emails sent will be saved here automatically.


The final tab is Logs & Attributes, consisting of three sections. 


Section 1 covers additional attributes. Using additional attributes, you can add up to 10 custom fields to suppliers. If you have no additional attributes applied to a supplier, this section will not be visible. 

 

Section 2 covers activity logs. All user activities from the creation of the new Purchase Order onwards are logged.



Section 3 covers transactions generated from the purchase process. 



Purchase order actions

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At the top of the document header, you can see purchase order actions. 


Clone

Makes a copy of the current purchase order. You can choose for the new purchase order to keep the same order number or assign a new order number. 


NOTE: Users with Xero integration can keep the order # as purchase orders are not synced from DEAR to Xero. For QBO, duplicate purchase order # is not allowed – a new order must be assigned.

 

Undo

Returns the purchase order to draft status. Order lines, invoice lines, payment information etc. will remain in the document if it has been previously entered and authorised. 


Void

Drops all current changes and deletes the inventory, invoice and payment records. The order status is changed to voided and the order can no longer be edited. 


Convert

Converts a simple purchase to an advanced purchase, allowing multiple shipments and invoices (partial deliveries) to be generated for the same purchase order. 


Mark as Received

Confirms no further stock will be received, closes the order and removes the order from the pending orders list. This purchase action will only be available after the stock received tab has been authorised. 


Print

Allows printing the chosen document for all selected purchases. The document is generated in PDF format for printing or saving to your device. 


Email

Allows e-mailing the chosen document to suppliers for all selected purchases. Documents are attached to the email as PDFs. You will be prompted to enter a subject line. You may wish to set Email templates to use for the email body. 


These actions can be performed for multiple purchase orders at once via Purchase Bulk Actions


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