The DEAR purchase module covers all processes involving buying stock from your suppliers. DEAR offers the following features to help make your purchase process smooth and efficient. All purchase documents and email templates can be customised to suit your business requirements.
- Processing a Purchase
- Purchase Orders
- Purchase Invoices
- Receiving Stock
- Credit notes and Refunds
- Attachments and Activity Logs
- Purchase Bulk Actions
- Managing Suppliers
- Low stock reorder
- Enable Inventory Accrual/Stock in Transit setting
Processing a Purchase
Processing purchases is the main purpose of the purchase module in DEAR. Through the purchase module, you can create purchase orders, purchase invoices and stock received actions. There is an option to add a credit note (negative invoice) after a purchase invoice has been authorised. Our purchase process design allows quick duplication of line items from the previous stage, streamlining your operations.
There are three types of purchase currently available in DEAR:
- Simple Purchases are used for purchases of goods or goods and services, with a single invoice and delivery. Most purchases will fall under a simple purchase. Learn more about Processing a Purchase.
- Service Purchases are used for orders without stock items (i.e. orders of services or non-inventory items only). In a Service Purchase, the Stock Receiving section is skipped as there is no change in Inventory. Learn more about Service Purchases.
- Advanced Purchase allows partial invoicing and receipt of items while still being considered part of the same purchase. It also allows multiple credit notes to be issued for a single purchase order. You can convert simple purchases into advanced purchases but not vice versa. Learn more about Advanced Purchases.
Purchase orders are raised to send to your suppliers and order goods and/or services. You can also process a purchase without a purchase order by using the Blind Receipt option, which will take you straight to the invoice or stock received tab of the purchase process.
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. This is part of Processing a Purchase.
DEAR allows you to record prepayments/supplier deposits made to the supplier at the order stage. There is also an option to make a supplier deposit that is not related to any particular purchase. If you have an unused supplier deposit with a supplier, you will be prompted to use it against future invoices with that supplier.
Learn more about Supplier Deposits.
Purchase Invoices are itemised documents indicating the quantity and price of goods and/or services provided by the supplier. This process allows users to register and maintain Supplier Invoices. This is part of Processing a Purchase.
Payments and Bulk Supplier Payments
Payments can be applied in DEAR to authorised invoices. If an invoiced supplier has an unused supplier deposit, you will be able to use it as payment towards the invoice balance.
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.
The Bulk Supplier Payments feature allows you to apply payments to multiple invoices from a supplier in one go to make your purchase process more efficient.
Applying Landed Costs
DEAR allows you to distribute landed costs among related invoices. A landed cost is the total price of a product once it has arrived at the buyer's door. This includes the original price of the product but can also include transportation fees, customs, duties, tax, insurance, currency conversion and any other costs outside of the direct inventory purchase cost. These costs are typically applied by handling or fulfilment services under their own invoice and then need to be allocated to the correct purchase invoices in DEAR.
Learn more about managing the Landed Cost Expense Distribution.
Allows the user to input purchased Stock into your inventory. In this tab, you can select where each stock item is received. The stock received quantity must match the quantity invoiced, but can be different from the purchase order quantity. This is part of Processing a Purchase.
Credit notes and Refunds
A credit note is considered a negative invoice. It is a way to amend the details of a purchase order or invoice after it has already been authorised, for example, if a unit price has been overcharged, if a shipment is partially or completely incorrect or damaged, or for a discount applied to an order once the order is completed. It is also possible to create a standalone credit note that is not linked to any particular purchase. When authorising a credit note associated with a purchase, you will be given the option to unstock the items from the order.
Learn more about Credit Notes and Refunds.
Unstock incorrectly received shipments
Allows the user to remove item(s) from your inventory in the event of short-shipped goods, damaged or faulty goods, or shipped goods that need to be returned to the supplier.
Learn more about Unstock.
Attachments and Activity Logs
Any documents printed or emails sent through the Purchase Order are saved in the Attachments 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.
Purchase Bulk Actions
DEAR allows executing actions in bulk for selected purchase tasks in the View All Purchases screen, which is accessed from the Purchase menu. These actions are available for both simple and advanced purchases. Void, Undo, and generating purchase documents and emails can all be performed in bulk.
Learn more about Purchase Bulk Actions.
Suppliers, supplier details, supplier addresses and supplier contacts are managed from the purchase module.
Learn more about Suppliers.
Low Stock Reorder
This function allows automatic reordering of stock that is running low from your suppliers, ensuring no sales are lost due to an item being out of stock. You can set low stock reorder points for each product over your entire inventory or for specific locations. Purchase orders for reordered stock are generated automatically.
Learn more about Low Stock Reorder.
Backorders involve processing sales that do not have enough stock on hand to be fulfilled. When a sale is authorised for an item with insufficient stock, you will be given the option of backordering that item. New stock is ordered from your suppliers to complete the order. To use the backorder function, the products to be backordered must have suppliers attached. When the item comes back into stock, the sale order can be completed.
Learn more about Backorders.
Enable Inventory Accrual/Stock in Transit setting
DEAR allows you to track costs for Inventory Accrual (Goods Received, Not Invoiced) and Stock in Transit (Goods Invoiced, Not Received). To use this function, you must enable Accrued Inventory Transactions in Settings -> General Settings -> Purchase Process Customisation. You must also provide relevant accounts and ensure they are mapped to the correct DEAR account.
If Inventory Accrual is disabled, or mapping for the relevant account is not provided, the functionality of the Purchase won't change from no accrual implementation, and only real costs will be accounted for.
Learn more about Inventory Accrual/Stock in Transit settings.