Purchase Orders need to be properly processed
A purchase order is what's needed whenever you purchase something for your business. You make purchases from suppliers, and every time you make a purchase, the items you purchase are added to your inventory. The purchase of items is typically recorded as "Cost of Goods Sold - Retail" and is subsequently offset in your Profit and Loss statement.
Placing purchase orders
Here's how to place purchase orders for items to add to your stock that you will then sell on
- Purchases > Purchase Order Entry: Choose the supplier, order date and the items with correct quantities and costs.
- Purchases > Outstanding Purchase Orders Maintenance: You can now receive the order.
- Purchases > Supplier Invoices: You can now add the received order as an invoice. You must enter a Supplier's Ref. In the GL Items for this invoice select "Cost of Goods Sold - Retail" and enter the full amount of the invoice, click add. Add a memo for your records and click "Enter Invoice".
This transaction will now be included in your profit and loss statement.
Payment procedure is as follows
- Purchases > Payments to Suppliers: Choose the correct Bank Account and make the payment. You will then be able to allocate the payment to the appropriate invoice.
Thanks for visiting.