Each business incurs certain expenditure to run. They can be further divided into ‘purchases’ and ‘expenses’. Expenses can be either cash expenses which are paid off immediately, or credit expenses, which are incurred on a particular date but settled later.
Purchase usually deal with only those purchases which we require to either manufacture, or for trading purposes.
The basic purchase cycle in any organisation consist of :
Raising a Purchase Order –> Receipt of goods –> Issue for production/Sale –> Purchase return (if any) –> Payment
The whole cycle takes some time depending on the nature and needs of the business.
In ProfitBooks, you can maintain and track most of the stages of the cycles in a simple way. We’ll take you through the process once.
Make a purchase order under ‘Expenses–> Purchase Order’. You can then directly mail the PO to you vendor, or take a print out.
Once you receive the goods,go to the respective purchase order and convert it to purchase, Add location details in case you maintain multiple warehouses.
Go to the Expenses–>Record Purchases’ and select the Purchase entry. Then you can either Return the purchase, to record Purchase Return, or ‘Make Payment’ from there itself.
Customize Your Purchase Records
You can take total control of your purchase cycle and customise the entry screen as per your business needs. For example, you can add customer fields to record more information or change numbering system.
Just go to Settings and click on ‘Custom Fields & Preferences’ tab as shown below:
Thats it ! Login to your account and create a purchase entry.