Purchase Process

When you are into the business of goods or services, the purchase process that you follow may be simple cash purchases, or even purchases on credit. When you receive credit from your parties, you certainly implement measures to track the credit and pay the dues on time. These may include credit limit from each supplier, and a predefined period to clear the dues. You may need to record purchase returns, and receive cash or use debit notes. Based on the type or volume of business that you run, you can use purchase order, receipt note, and so on. You can manage all such processes, and more, using TallyPrime with the flexibility of skipping any of the steps in-between and interchanging the sequence of entry.

Cash Purchases: Recording purchases for instant payment is a single step process in TallyPrime. In the invoice, you can include details of all the items purchased, or services received. These purchase details can be allocated to a single ledger or multiple ledgers as needed. Additionally, you can include expenses like packaging, transportation, insurance, and so on, and tax. After recording the details as per the invoice received from your supplier, you can print it with the supplier’s details, if needed.

Purchase Return & Debit Notes: When you record purchase returns in your business process, such return transactions can be recorded in TallyPrime, that too against the purchase invoice, if needed. Depending on the settlement of the bill, you may treat it as a rejection out, or return cash or use debit note to settle the return. As per your process, you can record the same in TallyPrime. Such debit notes, if any, can be consumed in purchase invoice.

Receipt Note & Rejections-out: If your business uses receipt note when shipping items from your supplier, you can use TallyPrime to create the same. Later, you can record purchases against the receipt notes, and track the receipt notes to closure. You also get the flexibility to generate receipt notes based on your purchase voucher. Item returned, if any, based on receipt notes can be recorded as rejections out, and settled.

Purchase Order: In case you follow purchase order processing in your business, you can create purchase orders in TallyPrime. Against the purchase order you may record receipt notes or purchase invoice. You can track such purchase orders to closure by recording receipt notes and purchase invoices, and track receipt notes to closure against purchase invoices. You may even pre-close the orders.

Though TallyPrime supports all these steps in a purchase process, it is not necessary that you choose to follow all these steps in any specific order. For example, you can just use: purchase or purchase + payments or purchase order + purchase + payments, and so on. You can even record purchase before purchase order, or purchase before receipt note.

Reports: Various reports are available to track purchases, payables, pending orders, pending purchases, and so on. As in other reports, these reports also have different views, navigation options, and support analysis based on different parameters.