Processing a Purchase

Processing a purchase is a 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.There is an option to add a credit note (negative invoice) after a purchase order has been created.


  • Set up Accounts and Tax Rules (necessary)

  • Set up Suppliers (recommended)

  • Set up Locations (recommended)

To process a purchase, follow the steps below:

  1. Create a purchase order

    1. Fill in the document header

    2. Add items to purchase order

    3. Save or authorise purchase order

    4. Send to supplier

  2. Process supplier invoice

  3. Input received stock

    1. Receive a full delivery

    2. Receive a partial delivery

  4. Create a credit note (optional)

    1. For individual items 

    2. For part of a shipment

    3. For a whole shipment

    4. For a discount applied to the order

Create a Purchase Order

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To create a new Purchase Order, navigate to either:


  • Purchase -> New Purchase 

  • Purchase -> Purchases -> +


To process a purchase without a purchase order, skip ahead to this step once you have created the new purchase.

Documents can be attached to the Purchase Order in the Attachment tab, and any documents printed or emails sent will be saved there automatically. All user activities from the creation of the new Purchase Order onwards are logged in the Activity Logs tab.

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.


  1. Select your supplier

  2. Check and edit details

  3. Select your input method

  4. Add a note (optional)

  5. Process a purchase without a purchase order

1. Select your supplier

It is recommended that you set up your suppliers before creating purchase orders. 

Suppliers can be selected in 3 ways:

  • Scroll through the drop down list to find your supplier. Note that not all suppliers may be visible if you have lots of suppliers. Select your supplier.

  • Search for a supplier by typing their name. Select your supplier.

  • Create a new supplier. Click + to be prompted for supplier details. 



2. Check and edit details

Once you have selected a supplier, many fields in the document header will be auto-filled, according to the information entered during supplier setup. For more information about supplier fields, see the supplier setup page. 


Some fields have to be manually filled in, such as the date required.

Check that the supplier fields, dates, location and shipping address are correct before proceeding. They can be amended in the document header if necessary, though it is recommended that location and shipping address details be edited in the Settings area.

3. Select your input method

You can choose to process purchases Stock First or Invoice First

The input method refers to the order of the steps in the workflow of your load.


The tabs change their position depending on whether billing happens before or after the stock is received. The steps in this guide are set to Invoice First, but you can just change the order of the next steps for Stock First.

If the Invoice First option is selected, you will first need to process supplier invoice before receiving the stock into the warehouse.


Default Input Method can be configured by going to Settings -> General Settings -> Purchase process customisation.


To calculate costs accounting for Goods Received, Not Invoiced and Goods Invoiced, Not Received, see more information about enabling Inventory Accrual settings


4. Add a note (optional)

The last part of the document header is Note. You can type up a note which can be populated on the document that’s produced for the supplier. 


The note’s area is searchable, and can be used to include reference codes (such as other purchase orders numbers or sale orders etc.  for quick retrieval when searching purchase orders.


5. For purchases without purchase orders

If you need to receive stock without creating a purchase order, for example directly with an invoice, select Blind Receipt.


This removes the step Add items to purchase order and you can skip ahead to step Add supplier invoice to purchase order or Input received stock, depending on your input method is Invoice First or Stock First.


Add items to purchase order

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Once the document header has been correctly filled in, items can be added to the purchase order. Each item must be added in an Order Line and then the pricing details included and checked. 

  1. Add order lines

  2. Enter pricing details

  3. Apply a discount (optional)

  4. Change tax rule (optional)

  5. Add additional costs (optional)

  6. Include a purchase order memo (optional)


1. Add order lines

Order lines can be added individually or in bulk. Adding order lines in bulk lets you add multiple items from the same family. For example, the same item but in different colours and sizes. 


Add an individual order line:

1. Select or Add more items


Items can be selected in 3 ways:

  • Scroll through the drop down list to find the item you want. Note that not all items may be immediately visible if there are many items to choose from. Select your desired item.
  • Search for a item by typing its name. Select your desired item.
  • Create a new item entry. Select Add new item from the drop down list. You will be prompted for some details about the item before proceeding.

2. Enter the required item quantity

            Add order lines in bulk:

1. Select +Family.

2. Select Product family from the drop down list.

3. Select desired colour and size options.

4. Fill in quantity field - this can be changed later. 

5. Fill in price field. Leaving the price as 0 will use the last purchase price. 

6. Click Add Products.

7.If required quantity of each product item is different to the one entered in step 4, it can be edited in the order line. 

Each variation in the product family will be included as its own order line in the purchase order. The price of each bulk order line can be edited just like an individual order line, shown in the next step. 

Import order lines from a CSV file: 

Purchase order lines can be uploaded from a CSV file. To upload from a file:

1. Select Import.

2. Follow the instructions on pop up window.

3. Upload chosen CSV file.

Add an orderline from a barcode:

1. Scan item barcode using a USB scanner OR

2. Manually type in the SKU.

3. Choose the desired item quantity.

2. Enter pricing details

The price can either be edited on this screen or be automatically filled. Prices automatically filled come from two places; the last supplier price can be used or a fixed supplier price can be controlled through the Settings.

3. Apply a discount (optional)

Discounts can be applied in this field. Discounts apply to an individual order line, not the whole order. 

4 .Change tax rule (optional)

This field will be filled automatically with the tax status indicated in the document header. However, it can be manually overridden with another tax status if items with different tax rules are included in the same purchase order. 

5. Add additional costs (optional)

By selecting or Add More Items in the additional costs section, costs associated with the purchase order that do not have their own order line can be added, such as freight, training and support.

6. Include a purchase order memo (optional)

Purchase order memos will be shown to the supplier on the purchase order. 

7. Deposits/Prepayments

This functionality is covered in a separate section.

Save and authorise 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 the screen. This will save the purchase order for later authorisation without having it be picked up by your accounting reports. 

Saving and sending to supplier

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After the purchase order is authorized there is the option of printing it or emailing it to the supplier. Most DEAR Inventory documents are generated in PDF format.


Purchase orders can be either:

  • Saved to your computer and emailed to your supplier.

         Click Print -> Purchase Order and save as a PDF.


  • Emailed directly to your supplier

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

Process supplier invoice

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There are two ways to process a supplier invoice. 


For an invoice without a purchase order:

  1. Navigate to Purchase -> New -> Purchase

  2. Fill out the document header as shown in the Create a Purchase Order section of this document. Select Blind Receipt


For an invoice with an existing purchase order:

  1. Navigate to Purchase -> Purchases

  2. Select the purchase order related to the invoice


From here, the steps are the same for both methods.

  1. Select the Invoice tab of the purchase order

  2. Enter the Invoice number and invoice date. The due date is automatically filled in from the information entered into the purchase order, invoice date and payment terms.

  3. Enter the invoice lines

    • Automatically - Copy from the purchase order by clicking +Copy

    • Manually - Individually by clicking or Add more items

    • Manually - Import from a CSV file

    • Manually - Scan a barcode

  4. Enter additional costs 

    • Automatically - Copy from the purchase order by clicking +Copy from order

    • Manually. Manual costs can be added to costs that are copied from the purchase order by clicking or Add new items in the Additional Costs section

  5. Check the total and manually enter it into the validation field at the top-right of the screen.

  6. Authorise the invoice by clicking Authorise

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.

It is recommended that payments be handled via your accounting software. Creating payments in DEAR Inventory System and pushing them to accouting software is only supported by Xero. See here for more details. 

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

    • Automatically - Copy from the purchase order by clicking +Copy

    • Manually - Individually by clicking or Add more items

    • Manually - Import from a CSV file

    • Manually - Scan a barcode

  5. Stock can be received in two locations if required. To do this:

    1. Click or Add new items to add a new line

    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. 


Once the stock has been received the Invoice tab becomes available (if your input method is Stock First). 

Receive a partial delivery

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Sometimes a purchase order is made and sent to a supplier, however the supplier cannot fulfill the entire order at once. In this case the supplier will make multiple deliveries to fulfill a single purchase order. This can either take place with:

  • A single invoice for multiple deliveries. 

  • Separate invoices for each delivery


To receive a shipment with multiple deliveries, convert the purchase order to an Advanced Purchase. Follow the link for more information. 

Create a credit note

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A credit note is considered a negative invoice. It is a way to amend the details of a purchase order or invoice after they have already been authorised.  


There are four scenarios where a credit note can be applied in DEAR Inventory Systems. These are:

  • For individual items - when a unit price has been overcharged

  • For part of a shipment - when part of the shipment has either been short-shipped or damaged goods were received.

  • For a whole shipment - when an entire shipment was received incorrectly or it was shipped out incorrectly.

  • For a discount applied to an order once the purchase order is completed. 


To add a credit note (these steps are the same for each case):

  1. Navigate to Purchase -> Purchases. 

  2. Select the purchase order you wish to apply the credit note to.

  3. Select the Credit Note tab of the purchase order.

  4. Enter the credit note number and date as provided by your supplier. 

  5. Enter the credit note lines either:

    1. Automatically - Copy from the stock received tab by clicking + Copy

    2. Manually by clicking or Add more items

For individual items

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To add a credit note to an item:

  1. If adding credit note lines automatically from stock recieved, remove any items that were not overcharged.

  2. In the Price field, enter the difference between the correct price and the overcharged price.

  3. Click Authorise.

For part of a shipment

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To add a credit note to part of a shipment:

  1. If adding credit note lines automatically from stock received, remove any item lines that were correctly received. 

  2. In the Quantity field of the item line, enter the number of items that were incorrectly received. 

  3. Click Authorise.

  4. You will be automatically prompted to Unstock the credit note items. 

  5. Click Authorise.

The incorrectly received items will be removed from your inventory and your accounts updated.

For a whole shipment

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To add a credit note to a whole shipment:

  1. Copy the invoice items across to the credit note tab.

  2. Click Authorise.

  3. You will be automatically prompted to Unstock the credit note items.

  4. Click Authorise.


All of the items included in the shipment will be removed from your inventory and your accounts updated.

For a discount applied to an order

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To add a discount to the whole order:

  1. Make a note of the total cost of the shipment.

  1. Click + Additional Cost.


  1. Fill in the Description field.

  2. Insert the discount value into the Price field.

  3. Check that the correct Account and Tax Rule is applied.

  4. Click Authorise.