Main Menu > Purchase Management > Transaction
The Goods are supplied by supplier to the buyer, in terms of Purchase Order issued by the Buyer
•Delivery of Goods by Supplier :The supplier supplies the goods as per Purchase Order and submits an Invoice (suppliers Sales Invoice) as per terms of Purchase Order, This becomes Purchase Invoice for the Buyer. Sometimes, the supplier submits Delivery Challan at the time of supply (which becomes Goods Receipt Note for the Buyer) and submits Invoice later on.
•Receipt of Goods by Buyer : The goods are Received after inspection and counting. The accepted goods are taken into stock.
•Recording of Receipt of Goods : The particulars of quantity and value of goods received and accepted are entered through Purchase Invoice Entry (if the supplier does not submit an Invoice, the Items Rates and other charges (taxes etc) are picked up as per Purchase Order. This entry affects Inventory (Stock is increased) and Accounts Ledgers (Purchase Account Debited and Suppliers Account Credited).
•Rejection / Return of Goods by Buyer to Supplier : Normally, the Purchase Invoice is entered for the accepted quantity only. Unaccepted goods are returned to supplier. However, for keeping proper and complete accounting records and to keep the buyers accounts in sync with the suppliers accounts, the suppliers sales invoice is entered as Purchase Invoice. For rejection or other reasons, the buyer makes a debit note for Return of rejected or unaccepted goods, or other value deductions. This entry is just a reverse entry of Purchase Invoice and affects Inventory (Stock is decreased) and Accounts Ledgers (Purchase Account Credited and Suppliers Account Debited) in reverse way.
Through this menu, you may make entries for the following vouchers :
•Purchase Order : The purchase activities start from issue of Purchase Order on the Supplier for supply of Items at rates and terms as specified in the Purchase Order. On supply of Items, the supplier submits an Invoice for the Items supplied, which constitutes the Purchase Invoice.
•Purchase Challan (Receipt Note): The Bill / Invoice is prepared on a future date but we receive a challan with the goods as a proof of goods sent. Such types of transactions are called Purchase Challan.
•Rejection Out: Sometimes unaccepted Items received through Purchase Challan needs to be returned to supplier. This transaction is called Rejection Out.
•Purchase Invoice : The entry of Purchase Invoice is made from the Purchase Invoice received from the supplier.
•Purchase Return (Debit Note) : Sometimes, unaccepted Items are returned to supplier. This is entered in the Purchase Return (Debit Note) document
