Record the supplier and its terms
The supplier. Illa enters Ciments du Littoral with Create a vendor, with its name and phone number. Suppliers are called vendors in the product. A new supplier cannot be bought from on credit yet. The credit terms. Illa then says that Exowpee may buy on credit from this supplier, with Set vendor credit terms: payment within 30 days, at most 2,000,000 FCFA owed in total, and at most 800,000 FCFA in one purchase, for example. She does it before the first purchase because the terms apply to the purchases she creates and submits after. See Manage suppliers.Purchase
The draft. Bio Gounou, the storekeeper, creates the purchase with Create a purchase: 100 bags of cement at 5,500 FCFA each, marked as on credit. With no due date given, the due date is the purchase date plus the 30 days of the supplier. Nothing is owed yet, and no stock moves. A forgotten line. Bio also needs 60 bags of another cement type. While the purchase is a draft, he adds them with Add purchase lines. The total is now 880,000 FCFA. The submission. Bio submits the purchase with Submit a purchase. The purchase is above the 800,000 FCFA limit for one purchase, so Exowpee refuses unless Bio says the purchase needs approval. He does, and the purchase waits for Illa. The approval. Illa reads it and approves with Approve a purchase. The purchase becomes active and the supplier invoice is recorded: the amount is now owed to the supplier. See Create and approve purchases. The form. Before phoning the supplier, Illa generates the paper with Generate a purchase order form. It is a fixed copy of the purchase as it is now: asking again returns the same form.Receive
The reception. On Thursday the truck announces 100 bags. Bio plans the reception with Create a purchase delivery, against the active purchase, and says how extra costs are shared between the lines. The counted lines. At the warehouse, Bio adds the line with Add a delivery item: the purchase line, the warehouse as location, 100 bags received and 4 torn, with the reason. He chooses whether the cost of the torn bags is taken out of the stock cost or carried by the good bags. The confirmation. Bio confirms with Confirm a purchase delivery. The 96 good bags enter stock at the warehouse with their cost. The 60 bags still to come keep the purchase active. The purchase becomes completed when nothing remains to receive. See Receive purchased goods.Pay the debt
The payment. When the due date comes, Sènami pays from her register with Pay a vendor, for example 500,000 FCFA. Exowpee applies it to the supplier’s unpaid credit purchases, the one due first before the others. She can also name the purchases to settle. See Pay suppliers and adjust debt.The rules
- A supplier is not creditable until its credit terms say so. A credit purchase needs a creditable supplier.
- A supplier with overdue debts blocks a new credit purchase unless the person holds the permission to bypass due date checks. The same holds for the permission to bypass debt limits at submission.
- Only a draft or rejected purchase can take new lines. When the purchase has VAT above zero, you must say whether it is recoverable.
- A reception can be planned only against an active purchase. The quantity cannot exceed what remains to receive on the line. Drafts do not reserve quantity: the check runs again at confirmation, and a confirmed reception cannot be confirmed twice.
- A delivery fee that the company does not pay is added to what is owed to the supplier at confirmation. Products not tracked in stock add nothing to stock.
- The payment is in cash from a register that has a cash account. Exowpee does not check that the register is open. The whole amount must be applied: if it is more than what the targeted purchases still owe, nothing is recorded.
- Without a choice of purchases, a payment is applied by due date, the purchase’s own, then by creation date.
- Recording a payment to a supplier posts no accounting entry.
All the steps
1
Create a vendor
Registers a new supplier, with optional credit terms and limits. Reference
2
Set vendor credit terms
Sets whether you can buy on credit from a supplier, the payment terms and the debt and order limits. Reference
3
Create a purchase
Starts a new purchase to a supplier as a draft, with its lines and costs. It can be on credit if the supplier allows it. Reference
4
Add purchase lines
Adds product lines to a purchase that can still be edited. Reference
5
Submit a purchase
Moves a draft or rejected purchase forward to become active, or sends it for approval when a credit purchase exceeds the supplier debt limits. Reference
6
Approve a purchase
A manager approves a purchase that was waiting for approval, making it active and recording the supplier invoice amount. Reference
7
Generate a purchase order form
Creates the purchase order form document for a purchase using the active template, and keeps a fixed copy. If one already exists it is returned instead. Reference
8
Create a purchase delivery
Plans a delivery (goods brought by the supplier) against an active purchase, with items, extra costs, and an optional delivery fee. Reference
9
Add a delivery item
Adds a product line, with received and damaged quantities, to a delivery that is not yet confirmed. Reference
10
Confirm a purchase delivery
Confirms goods were received: stock is added, the purchase lines are reduced and the purchase becomes completed when nothing remains. Reference
11
Pay a vendor
Records a cash payment to a supplier from a cash register and applies it to the supplier’s unpaid credit purchases, soonest due date first or only to the purchases you pick. Reference