01 - Overview

The Purchases module in the Inventory App helps businesses streamline procurement by managing the entire purchasing cycle — from creating purchase orders to receiving goods and recording vendor bills. By integrating with Accounts (Vendors), Products, and Warehouses, the module ensures smooth supply chain operations and accurate inventory tracking.

Purpose of Purchases

• Ensure Stock Availability – Keep warehouses replenished with the right products at the right time.

• Streamline Vendor Transactions – Manage purchase orders, receipts, and payments in one place.

• Maintain Accuracy – Automatically update stock levels when goods are received.

• Gain Visibility – Track pending, received, and invoiced purchases for better planning.

Purchase Process Flow

The purchase cycle typically follows these steps:

1. Purchase Order (PO) – Request for products sent to a vendor.

2. Goods Receipt (GR) – Confirmation of stock arrival and entry into the warehouse.

3. Vendor Bill (Invoice) – Payment request from vendor linked to PO and GR.

4. Payment – Settlement of the bill as per agreed terms.

Key Features

• Purchase Orders – Create, track, and approve vendor orders.

• Goods Receipts – Record items as they arrive and update stock.

• Vendor Bills – Manage invoices and link them to POs for 3-way matching.

• Payments Tracking – Keep track of outstanding and completed vendor payments.

• Reports & Dashboards – Analyze purchase spend, vendor performance, and pending orders.

Integration with Other Modules

• Accounts (Vendors) – Purchases are tied to vendor accounts for a 360° view of relationships.

• Products – Automatically link purchase transactions to the product catalog.

• Warehouses – Assign goods received to specific warehouses for accurate stock tracking.

• Inventory – Stock levels update instantly when goods are received.

Benefits of Managing Purchases in the Inventory App

• Efficiency – Automate routine purchase tasks.

• Transparency – Full visibility of procurement history.

• Cost Control – Monitor spend by vendor or product.

• Compliance – Ensure approvals and audits are properly documented.

Getting Started

To begin using the Purchases module:

1. Set up Vendor Accounts.

2. Configure Products and Warehouses.

3. Create your first Purchase Order.

4. Follow the process through Goods Receipt → Vendor Bill → Payment.

Tip: For detailed steps, see the articles on Setting Up Purchase Orders and Receiving Goods in the next article.