When I enter a purchase order for a product that I am reselling, it does not give me an option for my items? The items are already added, however how do I add them into inventory from the Purchase order?
A purchase order is an outgoing document, used to order something from a supplier. Items are added to inventory only when you “buy” them, via a purchase invoice. Think of it this way: you might order something a supplier doesn’t have, in which case you would not want it added to your inventory.
What do you mean by this?
In purchase order, you select suspense account dropdown and and then select inventory on hand, then select inventory item.
In sales, you select suspense account dropdown and then select inventory-sales.
The item field is for anything you have in purchase invoice items and sales invoice items. The suspense drop down field is for all income and expense accounts such as accounting fees, delivery fees as well as your inventory on hand and inventory-sales. At some point in time, I believe that the developer will be moving these two accounts to the items dropdown so that sales and purchase invoice items and inventory items are all in the same area.
You need to first add to your inventory before you create the purchase order or sales invoice. The program does not allow you to add new inventory items from these forms just so that you are aware.
In other accounts programs you can receive in stock against a Purchase Order which creates a Purchase Delivery note. Afterwards you can convert the Purchase Delivery Note to a Purchase Invoice. It saves time.
The trouble with the approach you describe is that it presumes the information you entered in a purchase order is correct. In fact, prices may have changed. Your obligation is based on what the supplier invoices, not what you ordered. That’s what you’re entering in Manager as a purchase invoice. And that’s the appropriate accounting approach. I think if you analyze it, you’ll come to the conclusion Manager’s workflow may be different from what you are used to, but not more complex.
Which program does this? From accounting point of view, only purchase invoice can increase inventory on hand. Purchase order cannot. I mean how exactly would this work in double-entry accounting system if you could do that. Purchase order will debit Inventory on hand account, which account will it credit? Accounts payable? Then what happens if you enter purchase invoice? See what I mean…
@book wrote " receive in stock against a Purchase Order which creates a Purchase Delivery note. Afterwards you can convert the Purchase Delivery Note to a Purchase Invoice"
I’m “guessing” the accounting doesn’t occur until the conversion into Purchase Invoice