Skip to content

Purchases (PAGE DEVELOPMENT IN-PROGRESS)

Key Purposes

1. Accurate Recording of Purchases and Expenses:

  • Ensures all purchases and expenses are systematically recorded.
  • Provides a clear record of what was bought, from whom, and at what price, which is essential for financial tracking and budgeting.

2. Vendor Management:

  • Helps maintain an organized database of vendors.
  • Facilitates easy selection and addition of vendors, improving efficiency and accuracy in processing transactions with various suppliers.

3. Detailed Transaction Documentation:

  • Allows for detailed input of each purchase, including item or service description, quantity, price, and associated expense accounts.
  • This detail aids in accurate accounting and financial analysis, helping businesses understand their expenditure patterns.

4. Automated Calculations:

  • Automates the computation of discounts, taxes (like VAT), and totals.
  • Reduces the risk of human error in financial calculations, ensuring accuracy in the financial records.

5. Review and Verification:

  • Provides functionality for reviewing transaction details and journal entries.
  • Ensures that all financial data entered is correct and consistent before being finalized, which is essential for maintaining accurate financial statements.

6. Supporting Documentation and Notes:

  • Allows for the attachment of supporting documents (e.g., receipts, invoices) and the addition of comments.
  • Enhances the completeness of records, providing a clear audit trail and supporting evidence for each transaction.

7. Transaction Management Flexibility:

  • Offers options to edit, delete, submit, or cancel transactions.
  • This flexibility is crucial for correcting mistakes and managing changes in a dynamic business environment.

8. Approval Workflow:

  • Incorporates a multi-level approval process (submission, checking, and approval).
  • Ensures that purchases are verified and authorized by the appropriate personnel, enhancing internal controls and accountability.

9. Reporting and Analysis:

  • Generates detailed and downloadable PDF reports for accounts payable and other transactions.
  • Provides valuable insights into financial data, aiding in decision-making and financial planning.

10. Audit and Compliance:

  • Maintains a comprehensive and organized record of all purchase transactions.
  • Facilitates compliance with accounting standards and regulatory requirements by ensuring all financial activities are properly documented and approved.

Complete Walkthrough Video

Journal Vouchers Step by Step User-Manual

1. Access the Purchases Module:

  • Go to the dashboard and click on the "Purchases" section under "Expenses".
  • Alternatively, navigate through the sidebar by selecting "Purchases" under the "Purchases and Payments" section.

2. Initiate a New Purchase Transaction:

  • Click the "Add" button (blue button) to start a new purchase transaction.

3. Select or Add a Vendor:

  • Choose a vendor from the dropdown list of available vendors.
  • If the vendor is not listed, you can add a new vendor by entering their details.
  • Click the "Add" button after selecting or adding a vendor.

4. Vendor Information:

  • The system will automatically fill in the vendor code, name, and type (default is "vendor").
  • You can edit this information if needed, for example, if the vendor is also a customer.
  • Default values for TIN (Tax Identification Number) and terms are zero, but these can be edited in the configurations module.

5. Enter Document Reference and Terms:

  • Input the document reference (e.g., "O001234").
  • Enter the terms (e.g., 10 days) which helps in determining the due date of the transaction.
  • The system will automatically compute the due date based on the terms and the date of purchase.

6. Fill in Item Details:

  • Select the product or service from the dropdown menu. If it's not available, you can add a new product or service.
  • Choose the appropriate expense or purchase account (e.g., "communication").
  • Enter the quantity and purchase price.
  • The system will compute the total amount (quantity multiplied by purchase price).
  • Add more line items if needed by clicking the "Add" button and repeating the above steps.
  • To delete a line item, click the "Delete" button.

7. Apply Discounts:

  • Enter any applicable discounts either in rate or amount.
  • For example, if using a rate, input the percentage (e.g., 20%).
  • The system will automatically compute the discount amount and the discounted total.

8. Handle Value Added Tax (VAT):

  • Select the VAT option (e.g., 12% or no VAT).
  • The system will compute the VAT amount, net VAT discount, and total after VAT.

9. Add Remarks:

  • Input any remarks relevant to the transaction (e.g., "for payment in January 2024").

10. Save the Transaction:

  • Click the "Save" button to save the purchase transaction.

11. Review Transaction Details:

  • Click "Show Transaction" to review the details of the transaction.
  • Check the journal entries to ensure they are correct.

12. Upload Attachments:

  • If there are supporting documents (e.g., receipts, invoices), upload them in the "Attachments" section by clicking the "Add" button.

13. Add Comments:

  • Use the "Comment" section to note any additional information.
  • Submit the comment by clicking the "Submit" button.

14. Manage the Transaction:

  • As a user, you can edit, delete, submit, or cancel the transaction.

15. Generate Reports:

  • Download the details of the transaction as a PDF by using the "Export PDF" option.
  • Check the accounts payable voucher and other transaction details in the downloadable file.

16. Approval Process:

  • Submit the transaction for approval.
  • Review and approve the transaction.
  • After approval, the downloadable PDF will include digital signatures and timestamps showing when it was submitted, checked, and approved.