Purchase and supplier entry

Purchase entries increase stock and create what you owe to suppliers. Entering them on the day goods arrive keeps both numbers trustworthy.

Steps

1. Add the supplier

   Create the supplier with name, phone and any tax details. Add an opening balance if you already owe them money.

2. Open a new purchase

   Choose the supplier and enter the supplier invoice number and date so you can match their statement later.

3. Check goods against the delivery

   Count what arrived and compare it with the supplier invoice before you enter it.

4. Enter items and cost

   Add quantities and the cost price from the invoice. If the price changed, update it so margins stay correct.

5. Record payment

   Enter any amount paid now. Anything unpaid stays on the supplier ledger.

6. Reconcile with supplier statements

   Each month, compare your supplier ledger with their statement and resolve differences.

Tips

• Enter purchases the same day they arrive
• Keep the supplier invoice number in every entry
• Record purchase returns with the original invoice

Common mistakes

• Entering purchases weeks later from memory
• Not updating cost when the supplier changes price
• Paying suppliers without recording it