Purchase Receipt
Purchase Receipts are made when you accept Items from your Supplier usually against a Purchase Order.
You can also accept Purchase Receipts directly without the need for a Purchase Order. To do this, set Purchase Order Required as “No” in Buying Settings.
To access the Purchase Receipt list, go to: > Home > Stock > Stock Transactions > Purchase Receipt
1. Prerequisites
Before creating and using a Purchase Receipt, it is advised that you create the following first:
2. How to create a Purchase Receipt
To manually create a Purchase Receipt (although not recommended), follow these steps:
- Navigate to the Purchase Receipt list and click on “New”.
- Optionally, fetch the Supplier name and Items from the Purchase Order by selecting “Get Items from > Purchase Order”.
- Set the Accepted Warehouse for all items in this Purchase Receipt. This information is fetched if it was set in the Purchase Order.
- If any Items are defective, designate the Rejected Warehouse where those Items will be stored.
- Select the Item and enter the quantity in the Items table. The rate will be automatically fetched, and the amount will be calculated accordingly.
- If needed, expand the item row to modify the Accepted Warehouse for a specific Item.
- Save and submit the Purchase Receipt.
Additionally, you can include a ‘Supplier Delivery Note’ to the Purchase Receipt if your Supplier has provided additional notes. You can also adjust the posting time and date of the Purchase Receipt using the ‘Edit Posting Date and Time’ checkbox. By default, the date and time are set when you initiate the creation of the Purchase Receipt.
If you’re returning Items that were not accepted to your Warehouse, tick the “Is Return” checkbox.
2.1 Statuses
These are the statuses a Purchase Receipt can be in:
- Draft: A draft is saved but yet to be submitted to the system.
- To Bill: Yet to be billed using a Purchase Invoice.
- Completed: Submitted and received all the Items.
- Return Issued: All the Items have been returned.
- Cancelled: Cancelled the Purchase Receipt.
- Closed: The purpose of the Close is to manage short-closing. For example, you ordered 20 qty, but closing at 15 qty. The remaining 5 is not to be received or billed.
3. Features
3.1 Currency and Price List
This section displays the currency of the Purchase Receipt, which is derived from the Purchase Order. Item prices are fetched from the designated Price list. Selecting “Ignore Pricing Rule” will disregard any Pricing Rules established in Accounts > Pricing Rule.
Given that the incoming Item influences the value of your inventory, it’s crucial to convert it into your base currency if the order was made in a different currency. You may need to adjust the Currency Conversion Rate accordingly.
For further information, refer to the documentation on Price Lists and Multi-Currency Transactions.
3.2 Warehouse details
The specified Warehouses will be applied to all Items listed in the Items table of the Purchase Receipt. Individual Warehouses for each Item can be adjusted within the table.
- Accepted Warehouse: Designates the Warehouse where the incoming Items will be received and stored, typically the “Stores” Warehouse.
- Rejected Warehouse: Specifies the Warehouse where rejected Items, deemed defective or not meeting quality standards, will be stored.
Subcontracting
- Raw Materials Consumed: In case you’re subcontracting, select ‘Yes’ to consume the Raw Materials from the vendor.
3.3 Items table
- Barcode: Items can be tracked using barcodes.
- Scan Barcode: Items can be added to the Items table by scanning their barcodes with a barcode scanner. Refer to the documentation on tracking items using barcodes for more information.
- Item Code, Name, Description, Image, and Manufacturer details are fetched from the Item master.
- Received and Accepted: Specify the received, accepted, and rejected quantities. The Unit of Measure (UoM) is fetched from the Item master. If the Purchase Order for an Item is in a different Unit of Measure (UOM) than the stocked UOM, you will need to update the “UOM Conversion Factor”.
- Rate: The rate is fetched from the Price List, if set, and the total amount is calculated accordingly.
- Item Tax Template: You can apply a specific tax amount to this particular Item by setting an Item Tax Template.
- Item Weight details per unit and Weight UOM are fetched from the Item master.
- Warehouse and Reference: Set the accepted and rejected Warehouses and optionally add a Quality Inspection, see the next section.
- Serial No, Batch No, and BOM: If the Item is serialized or batched, enter Serial Numbers and Batch information in the Items table. Multiple Serial Numbers can be entered in one row, with each on a separate line, matching the quantity of the Item. Separate fields are available for entering Serial Numbers of accepted and rejected Items. Batch Numbers can also be set, for example, when storing a batch of plastic medicines. Ticking “Allow Zero Valuation Rate” permits submitting the Purchase Receipt even if the Valuation Rate of the Item is 0, which may be applicable for sample items or as per mutual agreements with Suppliers. If the Item is serialized, a popup will appear where Serial Numbers can be entered.
- Accounting Dimensions allow tagging each transaction with different Dimensions without creating new Cost Centers. First, create Accounting Dimensions to utilize this feature.
- Page Break will insert a page break just before this item when printing.
3.4 Tracking Quality Inspection
If it is necessary to record Quality Inspections for specific Items (as configured in your Item master), you must update the “Quality Inspection” field. The Purchase Receipt can only be submitted once the “Quality Inspection” field has been updated accordingly.
By activating Inspection Criteria in the Item form for Purchase and associating a Quality Inspection Template, Quality Inspections can be documented within Purchase Receipts.
For further information, please refer to the Quality Inspection page.
3.5 Raw Materials Consumed
- The Consumed Items table contains the Raw Materials consumed by the Supplier in order to receive the Finished Item.
- The Get Current Stock button will fetch the current stock of the Consumed Items from the Supplier Warehouse.
3.6 Taxes and Valuation
The taxes and charges will be retrieved from the Purchase Order.
For further details on taxes, please refer to the Purchase Taxes and Charges Template page.
To automatically include taxes via a Tax Category, please visit this page.
Ensure that all taxes in the Taxes and Charges table are correctly designated for precise valuation.
Shipping Rule
A Shipping Rule helps set the cost of shipping an Item. The cost will usually increase with the distance of shipping. To know more, visit the Shipping Rule page.
3.7 Additional Discount
Any additional discounts to the whole order can be set in this section. Read Applying Discount for more details.
3.8 More Information
The status of the Purchase Receipt is displayed here and at the top. The different statuses include Draft, To Bill, Completed, Canceled, and Closed. This section also indicates the % Amount Billed, representing the percentage of the amount for which Sales Invoices have been generated.
3.9 Printing Settings
Letterhead
You can print your Purchase Receipt on your company’s letterhead. Know more here.
‘Group same items’ will group the same items added multiple times in the items table. This can be seen when your print.
Print Headings
Purchase Receipt headings can also be changed when printing the document. You can do this by selecting a Print Heading. To create new Print Headings go to: Home > Settings > Printing > Print Heading. Know more here.
3.10 After Submitting
A Stock Ledger Entry is created for each Item adding the Item in the Warehouse by the “Accepted Quantity” If you have rejections, a Stock Ledger Entry is made for each Rejection. The “Pending Quantity” is updated in the Purchase Order.
After submitting the Purchase Receipt, the following can be created:
3.11 Returning a Purchase Order
After receiving a Purchase Order through a Purchase Receipt, you have the option to generate a return entry if there is a need to return the item to the supplier. For further details, please refer to the Purchase Return page.
3.12 Skipping Purchase Receipt
If you prefer to generate a Purchase Invoice directly without creating a Purchase Receipt following a Purchase Order, you can activate this feature in the Buying Settings.
Changing the value of Items post Purchase Receipt:
Occasionally, certain expenses that contribute to the overall cost of your purchased items become apparent only after some time. A typical example is when you import items and become aware of customs duties, etc., only when your clearing agent sends you a bill. If you wish to allocate this expense to your purchased items, you’ll need to utilize the Landed Cost Voucher. Why “Landed Cost”? Because it signifies the charges incurred upon the items landing in your possession.