Purchases

A purchase records stock you buy from a supplier when the goods and the supplier’s bill arrive together. Saving it does three things in one journal entry. It adds the goods to your stock at their cost. It books the VAT you can claim back. It either adds the amount to what you owe the supplier or pays it from a cash or bank account.

Where

Purchases › Purchases › New purchase. Overview: Purchases › Overview

Number

PUR-000001, given when you save. A price correction gets PPC-000001

Posts to

Inventory, Input Tax Recoverable, Accounts Payable or the cash or bank account you pick, Rounding Difference

Who

Managers and admins. Only admins delete or cancel

What it’s for

• Goods and the supplier’s bill arrive together. You enter both once, and the stock is in your shop from the Purchase date.
• You pay later (Pay later), pay at once (Pay now), or pay a part now and the rest later.
• Goods that arrive before the bill use Goods receipts. A bill with no goods, such as rent, uses Expense bills.
• Paying a bill you owe uses Supplier payments. Sending goods back uses Returns. Ordering ahead uses Purchase orders. Supplier records are in Suppliers.
• Only stock items can be bought here. A service or a bundle cannot.

The Purchases list

The list shows every purchase, newest first, with the supplier, the dates, the Total, the Balance due and the status. Search by purchase number, supplier, supplier invoice number or product. The Status filter offers All statuses, Unpaid, Part paid, Overdue, Paid, Supplier advance and Cancelled. A purchase you just saved is marked Just saved. A price-corrected purchase shows “Corrected on ‹date›” under its total.

The Overview

Purchases › Overview is a glance, not a place to post. It shows four counts: Unpaid purchases, Overdue, Receipts waiting for a bill and Owed to suppliers. Under them are Needs attention (goods receipts still waiting for a supplier bill) and Recent purchases. Each count and row opens the list or task behind it. The Overview posts nothing.

Fields

The header

Field	What it means	What it changes
Supplier *	Who sold you the goods. Search by name or code, or add a new supplier from the box	What you owe this supplier. The supplier’s figures (what you owe, overdue bills, advance you can use) appear under the header
Supplier invoice number *	The number printed on the supplier’s bill	Printed and searched. The same supplier cannot have the same number twice
Supplier invoice date *	The date printed on the supplier’s bill. It cannot be after the Purchase date	The date used to decide if VAT can be claimed back. It starts the Due date
Purchase date *	The date the purchase goes into your books. Today at the latest	The date of the journal entry and of the stock movement
Stock location	The store the goods go into. Chosen for you when there is only one	Stock at that location
Prices	Without VAT or With VAT: whether the costs you type already include VAT	How VAT is worked out on each line
Saved drafts (n)	Purchases you started and saved	Opens a draft. Drafts touch no stock, VAT or balances

The lines

Up to 50 lines. Each product can be on one line only.

Field	What it means	What it changes
Item	The product. Type a name, code or barcode	Which stock increases
Unit / pack	The base unit, the supplier’s unit or a pack	Changing it clears the quantity, cost and discount so you can check them
Qty	How many you are charged for	Stock in, and the line amount
Free	Free units the supplier adds on top of Qty	Stock in, at no extra value. Their price is taken off the line as a discount, so the total stays what the supplier invoiced
Cost	The cost of one unit (or one pack), with or without VAT as chosen in Prices	The line amount and the stock cost
Discount	The discount on the whole line, as an amount in AED. Type 10% for a percentage. The line menu switches between the two	Lowers the line before VAT. Unlike a sales invoice, an amount here is for the whole line, not for each unit
VAT %	The VAT rate of the item. You can pick another rate on one line and must give a reason	The VAT on the line
VAT, Total	Worked out for you	Shown only. The app works them out again when it saves

The line menu (⋯ or F4) offers Insert a line above, Discount as a percentage (%) or Discount as an amount (AED), Remove this line, and Use quote ‹price› when the supplier has quoted a price for the pack.

A strip under the lines shows facts about the line you are on:

• the last cost and its date, and the average cost (only if you may see costs);
• this cost, the selling price and the margin;
• the stock now and after, and the VAT.

Payment, supplier’s bill and totals

Field	What it means	What it changes
Pay later	You pay the supplier later	The whole amount is added to what you owe (Accounts Payable)
Due date *	Shown with Pay later. Starts on the supplier invoice date. Change it if the supplier gives you time. It cannot be before the supplier invoice date	When the bill is overdue
Paid now (AED) and Paid from	With Pay later, a part you pay today, such as a deposit. It must be less than the total. Only on a new purchase	A supplier payment is saved together with the purchase. The rest stays due
Pay now	You pay the whole amount today	Nothing is owed afterwards
Paid from *	With Pay now, the bank or cash account the money leaves	That account goes down. Its balance on the purchase date is shown
Claim VAT back	Yes if you can recover the VAT, No if not	Yes books the VAT to Input Tax Recoverable. No adds the VAT to the stock cost. Yes needs your company to be VAT registered on the supplier invoice date. It also needs a valid 15-digit tax registration number (TRN) for you and for the supplier
Bill total (with VAT)	Optional. The total printed on the supplier’s bill	The app checks your lines against it and shows “✓ Lines match the bill” or “Difference ‹amount›”. A difference that is not the VAT rounding stops saving
Bill VAT	Optional. The VAT printed on the bill	If it is within AED 0.05 of the calculated VAT, the printed VAT is booked instead
Bill discount	A discount on the whole bill, as an amount or a %	Shared across the lines, before VAT
Round off	Shown only if your company allows it. Between -1.00 and 1.00	Moves the amount you owe to the supplier’s printed total. The difference goes to Rounding Difference
Totals	Before VAT, VAT, discounts, Total, Paid, Balance due	A preview. The app works out the final figures when it saves

Buttons

Nothing touches your accounts until Save purchase in the review box.

Button	When you see it	What happens	Accounts
New purchase	The list and the Overview	Opens an empty form	No change
Save draft / Update draft	New purchase	Saves what you typed. No number yet	No change
Review and save	New purchase	Opens “Review purchase” with checks, the stock arriving, the payment sentence, the lines and the total	No change
Review & new	New purchase	The same review. After saving, a fresh form opens	No change
Save purchase	In “Review purchase”	Saves the purchase, the stock and the VAT together. Shows “Purchase recorded” with the journal	Posts
Back to edit	In “Review purchase”	Closes the review. Nothing is saved	No change
Pay bill	Row menu or purchase page, when money is owed	Opens a supplier payment for this purchase	Posts payment
Return goods	Row menu or purchase page	Opens a purchase return for this purchase	New document
Edit purchase	Row menu or purchase page	Opens the edit form. See Fixing a mistake	Restated or corrected
Review changes	Edit purchase	Shows what will change, then asks for a reason	No change
Save changes	After Review changes	Saves an ordinary edit	Restated on its own date
Save price correction	After Review changes, when stock has moved	Saves a price correction dated today	New entry, dated today
Change invoice number or due date	Purchase page menu	Changes only those two details. Needs a reason	No change
Print purchase	Row menu, or Print ‹number› on the page	Shows the purchase to print	No change
Print labels	Row menu or purchase page menu	Opens barcode label printing for the goods received	No change
Remove purchase	Row menu or purchase page menu, admins only	Offers Delete or Cancel with a correcting entry, or the one that is open	Removes or reverses
Delete purchase	Delete confirmation	Takes out every effect. Needs a reason	All effects removed
Cancel purchase	Cancel confirmation	Adds a correcting entry for the whole purchase on a date you choose. Needs a reason	Reverses it

Statuses you will see: a payment badge (Unpaid, Part paid, Overdue, Paid or Supplier advance) and, once cancelled, Cancelled. The purchase page also shows Posted and Stock received. A bill for goods already received shows “Bill for received goods”. There is no draft number: drafts live in Saved drafts (n).

What gets posted

Saving writes one journal entry, dated on the Purchase date. The stock moves into the Stock location on the same date. Lines with a zero amount are left out.

Example 1A credit purchase with a line discountPrices exclude VAT · Claim VAT back: Yes · Pay later

• 10 units at 100.001,000.00
• Line discount100.00
• Amount before VAT900.00
• VAT 5% on 900.0045.00
• Total owed to the supplier945.00

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	900.00		The goods, after the discount
1400Input Tax Recoverable	45.00		VAT you can claim back
2000Accounts Payable		945.00	You owe the supplier the full total
Total	945.00	945.00	Balanced

Ten units enter the stock location. Each unit costs you 90.00, which is the 900.00 shared over 10 units. The discount has no line of its own: the stock is booked after the discount.

Example 2When the costs include VATPrices With VAT · 10% line discount · Pay later

• 2 units at 52.50 with VAT105.00
• 10% discount10.50
• Total with VAT94.50
• VAT inside the total4.50

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	90.00		The goods without VAT
1400Input Tax Recoverable	4.50		The VAT taken out of the price
2000Accounts Payable		94.50	The total on the bill
Total	94.50	94.50	Balanced

The app takes the VAT out of the price you typed, so the supplier’s total is what you owe.

Example 3Paid at once, with VAT you cannot claim backPay now from a cash account · Claim VAT back: No

• 2 units at 50.00100.00
• Line discount10.00
• Amount before VAT90.00
• VAT 5% (not claimed back)4.50
• Paid94.50

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	94.50		The goods plus the VAT you cannot claim
The cash account you pick in Paid from		94.50	The money left that account
Total	94.50	94.50	Balanced

No Input Tax line is posted and nothing is owed to the supplier. The VAT becomes part of the stock cost, so each unit costs 47.25. Paying from a bank account works the same way with the bank account instead of cash.

Example 4Paying a part when you buyA purchase of 1,050.00 on Pay later · 400.00 paid from the bank

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	400.00		You owe the supplier less
1020The bank account you pick in Paid from		400.00	Money left the bank
Total	400.00	400.00	Balanced

The app saves two entries together; if either one fails, neither is saved. The first is the purchase for 1,050.00, built like example 1. The second, above, is the payment. You still owe 650.00. The part you pay now must be less than the total. To pay all of it, choose Pay now.

Example 5The supplier's round off3 units at 33.33 · Round off 0.01 · Claim VAT back: Yes

• 3 units at 33.3399.99
• VAT 5%5.00
• Round off on the supplier bill0.01
• Total on the supplier bill105.00

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	99.99		The goods
1400Input Tax Recoverable	5.00		VAT you can claim back
6760Rounding Difference	0.01		The small round off on the bill
2000Accounts Payable		105.00	The total the supplier asks for
Total	105.00	105.00	Balanced

The round off only moves what you owe. The stock cost and the VAT stay as calculated. A negative round off of -0.04 works the other way: Accounts Payable is 104.95 and Rounding Difference is a credit of 0.04.

How stock value and average cost change

Each purchase adds its value to the stock. The product’s average cost is the value of all the stock you hold divided by the number of units, across the whole company. A new purchase changes it at once.

Step	Pieces	Value	Average cost
First purchase: 10 cartons charged at 100.00, plus 1 free carton	11	1,000.00	90.9091
Second purchase: 11 cartons at 110.00	11	1,210.00
Stock after both	22	2,210.00	100.4545

Free units add pieces but no value. Later sales take the stock out at the average cost. A price correction after sales can raise or lower the average cost of the units still on the shelf (see Fixing a mistake).

Other rules that apply on every purchase

• VAT you can claim back: Input Tax Recoverable. Your company must be VAT registered on the supplier invoice date, and both you and the supplier need a valid 15-digit TRN. If not, choose Claim VAT back: No. The VAT is then added to the stock cost, as in example 3.
• Prices With VAT: the VAT is taken out of each line, rounded to the fils.
• VAT on the supplier’s bill: if the printed VAT differs from the calculated VAT by AED 0.05 or less, the printed VAT is booked. A larger difference is refused.
• Stock you sold before it arrived: if this product has stock owed to customers, the purchase clears it as the goods arrive, oldest sale first, at the purchase’s own cost. See Invoices.
• Duplicate bills: a supplier cannot have the same invoice number twice. The form warns you as you type.
• Paying from a bank or cash account: a payment is refused if it would take a bank account below zero. Cash accounts follow the same rule only if your administrator switched it on. See Supplier payments.

Where it shows up

Place	What changes after saving
Supplier balance, statement and ageing	You owe the supplier the total, less anything paid. A purchase paid at once adds nothing
Purchases list and Overview	A new row. “Unpaid purchases” and “Owed to suppliers” go up when you pay later
Stock and stock reports	More units at the Stock location, a “Purchase” movement, and a new average cost
Bank and cash accounts	They go down by what you pay now
VAT return (Detailed Reports › Tax)	Input VAT you claim back, counted in the period of the supplier invoice date
Day book	One entry for the purchase, plus one for any part paid at saving
Balance sheet	Inventory, Accounts Payable and Input Tax Recoverable
Profit and loss	Nothing when you buy. The cost shows as Cost of Goods Sold when you sell

What the app blocks

These checks happen before anything is saved, so a refused purchase leaves no half-written records.

Situation	What you see
No supplier	Select a valid supplier.
No supplier invoice number	Enter the supplier invoice number.
Same invoice number for the same supplier	This supplier invoice number has already been posted for the selected supplier. and, naming the other document, It is on ‹document›. Open that document, or delete or cancel it first to use the number again.
Supplier invoice date after the purchase date	Supplier invoice date cannot be after the purchase posting date.
Due date before the supplier invoice date	Due date cannot be before the supplier invoice date.
The same product on two lines	Combine duplicate product lines.
Line discount of 100% or more	Percentage discount must be less than 100%.
Line discount amount as big as the line	Discount amount must be less than the line subtotal.
Bill discount too big	Bill discount must leave a positive amount on every purchase line.
Free units entered in a pack	Enter free units in the product unit, not in a pack.
A service item	Service items are not supported by inventory purchase receipts. Select an inventory item.
A bundle	Bundles have no stock of their own and cannot be received. Select an inventory item.
Pay now with no account	Select the cash or bank account used to pay this purchase.
Part paid now is the whole total	The amount paid now must be less than the purchase total. To pay all of it now, choose Cash or Bank.
Claim VAT back, but your TRN is missing	To claim VAT back, the company needs a valid 15-digit TRN in Company settings.
Claim VAT back, but the supplier’s TRN is missing	To claim VAT back, the selected supplier needs a valid 15-digit TRN.
Company not VAT registered on the invoice date	Input VAT can only be recovered when the company is VAT registered on the supplier invoice date. Choose Non-recoverable VAT.
Bill total does not match the lines	Doesn’t match by ‹amount›. Check the lines or the discount.
Bill VAT too far from the calculated VAT	VAT differs from the calculated amount by more than AED 0.05. Check the supplier invoice.
Round off beyond 1.00	Round off must be between -1.00 and 1.00.
Round off while your company has it switched off	Purchase round-off is switched off under Settings > Rounding policy. Remove the round off or switch it on.
Purchase date in the future	The posting date cannot be in the future.
Date inside a locked period	The accounting period is locked through ‹date›. Choose a later date, or ask an administrator to reopen the period.
Paying from an account that would go below zero	This would take ‹account› below zero on ‹date› (balance then ‹amount›). Record at least ‹amount› coming in on or before ‹date› first, then save again.
Paying from a cash account an open till drawer uses	This Cash Financial Account is assigned to an open POS drawer. Close the drawer or choose another Cash or Bank Financial Account.
A VAT rate with no UAE treatment set	Add an effective UAE VAT treatment for each tax profile before posting.
A saved draft changed since you opened it	This saved purchase draft changed or was deleted. Reload it before posting.

If the answer to Save purchase is lost, the form stays locked and offers Try again. It sends the same request, so the purchase cannot be saved twice.

Warnings that do not stop saving

• Cost far from the last one. The review lists any product whose cost is more than 20% above or below its last cost.
• First purchase. The review lists items you have never bought before.
• VAT changed on a line. The review shows the rate you picked and your reason.
• Overdue supplier. The review tells you if this supplier already has overdue bills, and if an advance can be used when you pay.
• Thin margin. The line strip turns amber when the margin on the selling price is low.

Who can do it

Action	Admin	Manager	Cashier
See purchases, the Overview and drafts	Yes	Yes	No
Save a purchase and take payment while saving	Yes	Yes	No
Edit a purchase, price corrections, change invoice number or due date	Yes	Yes	No
Print a purchase	Yes	Yes	No
Delete a purchase	Yes	No	No
Cancel a purchase with a correcting entry	Yes	No	No

Paying a bill and returning goods have their own rights. A manager who lacks them sees those buttons greyed with the reason, or not at all. These are the standard roles. Your administrator can give a custom role each action separately in Settings › Users & access.

Fixing a mistake

1. Still a draft. Open it from Saved drafts (n) and change it, or choose Delete beside it. Your accounts are not touched.
2. Only the supplier invoice number or the due date is wrong. Use Change invoice number or due date in the purchase page menu. Nothing is posted again. A reason is required and the history keeps the old values. If the purchase is in a VAT return with locked figures, the invoice number is locked and you can still change the due date.
3. Posted, and none of its stock has been sold or moved. Use Edit purchase.
   • You can change the supplier, dates, location, items, quantities, costs, discounts, VAT and payment.
   • Review changes shows the old and new values and what happens to the total, the VAT and the balance. A reason is required.
   • The purchase is restated on its own date, with the same number. Stock, VAT and the supplier balance are worked out again for the whole purchase.
   • If the new total is below what you already paid, the extra becomes supplier advance. It stays with the supplier, and you can apply it to this bill afterwards.
   • Example: 2 units at 100.00 become 3 units. The total moves from 210.00 to 315.00 and the same purchase number carries the new figures.
4. Posted, and some of its stock has been sold or moved. The quantity, product, unit, lines, stock location and purchase date are greyed. You can still correct the Cost or the Discount (and the bill discount and round off). The app saves this as a price correction. It is a new record, dated the day you save it. The purchase and its date stay as they were.
   • The difference is split by how much of the stock is still on hand: the share for units still in stock goes to the stock value, and the share for units already sold goes to Cost of Goods Sold.
   • The VAT difference counts in the period of the correction day, so earlier reports and VAT returns with locked figures stay true.
   • A purchase paid at once is corrected on the supplier balance: the difference is not paid from or back to the account it was paid from.
5. A wrong quantity. Too many units: record a purchase return with Return goods. Units left off: record a second purchase for them. A wrong location: use a stock transfer. The edit form offers Record a purchase return and Add a second purchase for missing units.
6. The goods go back to the supplier, or the supplier gives a credit. Use Return goods. See Returns.
7. A payment was wrong. Open the purchase, go to its Payments tab, and edit or delete the payment there. See Supplier payments.
8. The purchase should never have been recorded. An admin uses Remove purchase. The app offers the ways that are open:
   • Delete (administrators only). Takes the purchase out as if it had never been recorded.
     • Its stock and VAT are removed, and what you owe the supplier goes back as it was.
     • A payment already made becomes supplier advance. No refund is paid.
     • Only the number stays in the history, as deleted. A reason is required.
     • It is not offered once stock has been sold or moved, a return or price correction exists, or the period is locked or filed.
   • Cancel with a correcting entry. Keeps the purchase and adds a correcting entry for all of it, on a date you choose, with a reason.
     • The stock goes out on that date and the VAT you claimed is taken off.
     • The amount goes back to where it was booked: the account it was paid from, or what you owe the supplier.
     • The purchase shows as Cancelled.
     • Payments and returns on it must be cancelled first. The review lists each step with a button.
     • It is not possible once stock has been sold or moved, or after a price correction.

Example: a price correction after stock was sold

You bought 10 units at 10.00 on credit with 5% VAT, so you owe 105.00. You sold 6 units and 4 are in stock. The supplier’s price was really 12.00. You change Cost to 12.00 in Edit purchase and save the price correction.

Example 6The price was higher than enteredDated the day you save it · 10 units, 6 sold, 4 in stock

• Difference before VAT: 10 units × 2.0020.00
• VAT 5% on the difference1.00
• Share for the 4 units still in stock (4 of 10)8.00
• Share for the 6 units already sold (6 of 10)12.00

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	8.00		The 4 units in stock are now worth more
5000Cost of Goods Sold	12.00		The 6 units already sold cost more
1400Input Tax Recoverable	1.00		More VAT you can claim back
2000Accounts Payable		21.00	You owe the supplier 21.00 more
Total	21.00	21.00	Balanced

The purchase keeps its date. Its total now reads 126.00, and “Original total 105.00” stays visible beside it. The stock then averages 12.00 a unit. The 6 units already sold keep the cost they were sold at. The correction is dated the day you save it, whatever the purchase date.

Example 7The price was lower than enteredThe same purchase, corrected to 9.00 instead of 12.00

• Difference before VAT: 10 units × 1.00-10.00
• VAT 5% on the difference-0.50
• Share for the 4 units still in stock-4.00
• Share for the 6 units already sold-6.00

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	10.50		You owe the supplier less
1200Inventory		4.00	The 4 units in stock are worth less
5000Cost of Goods Sold		6.00	The 6 units already sold cost less
1400Input Tax Recoverable		0.50	Less VAT to claim back
Total	10.50	10.50	Balanced

A price cut never takes the stock value below zero. If it would, the rest is taken off Cost of Goods Sold. If you had paid more than the new total, the extra becomes supplier advance in the same correction.

When Edit purchase is limited or refused

The edit screen explains why before you start, so you do not fill in a form for nothing. These are the main cases.

Situation	What you see
Stock has been sold or moved	Some of this purchase’s stock has already been sold or moved, so its quantity, product, location and date cannot change. You can still correct the unit price or discount. To send goods back, record a purchase return; for units that were left off, record a second purchase for them; to fix a location, use a stock transfer. Greyed fields say Stock already issued – quantity is locked., Stock already issued – the location is locked. or Stock already issued – the purchase date is locked.
Some units were returned	Some of this purchase was returned to the supplier, so it cannot be edited or deleted, and its quantity, product, location and date cannot change. You can still correct the unit price or discount of the units that were not returned; the units already returned keep the price their return used. (the app adds that the difference is recorded today)
Corrected before	This purchase was price corrected before. Further price changes are recorded as new corrections.
Every unit was returned	Every unit of this purchase was returned to the supplier, so there is nothing left to correct.
A payment on it was cancelled	A payment on this purchase was cancelled, so its prices cannot be corrected. Record a purchase return instead.
Today is in a locked period	The accounting period is locked through ‹date›, so a price correction cannot be recorded today. Ask an administrator to reopen the period.
Opening balance	This is an opening-balance purchase.
A price change and other details at once, after stock moved	Save the supplier details first, then correct the price: price corrections are saved on their own.
Nothing changed in a price correction	Nothing in the prices or discounts was changed.
The price change is too small to record	That change is too small to record: the line amount before VAT stays as it was. Change the price by a larger amount.
The purchase has free units	This purchase includes free units, and their price is part of the line’s discount, so a new price would charge for them. To send goods back, record a purchase return.
A discount received was closed on it	A discount received (‹document›) was closed on this purchase when it was paid, so it cannot be changed to a total below what is settled. Cancel that payment first, which also cancels the discount, then change the purchase.
Delete, but a payment batch pays it	Change payment batch ‹number› before deleting this purchase.
Delete, but supplier advance is applied to it	Supplier advance ‹number› is still applied to this purchase. Take that credit back first (Pay supplier, then Corrections), then delete it.
Cancel, but stock was sold or moved	Stock from this purchase has already been sold, transferred, or adjusted.
Cancel, but it was price corrected	A price-corrected purchase cannot be cancelled in this version.
Cancel reason too short	Use at least 5 characters to explain why this purchase is being cancelled.

A price correction on a large VAT difference: if the difference is above AED 10,000 and the VAT return it belongs to is already filed, the review shows a note about a voluntary disclosure (telling the tax authority about a correction to a filed return). It asks you to tick a box before you can save. Ask your tax adviser first.