Purchases Explained
Manager Menu-Tabs > Purchase Tabs
Purchases Tabs record, process and track invoices and debit notes (memos) from suppliers.
Introduction to Purchases and Accounts Payable
Just like sales the use of credit for purchases has also become common place. When a business purchasess goods or services, it either pays cash for the purchase, or it promises the supplier to pay later that creates an accounts payable entry. These tabs focus on purchases made that grant the business credit terms (purchases on account). A purchase on account is recorded by increasing the general ledger account inventory (debited) and increasing the general ledger account accounts payable (credited).
In addition, the individual supplier records maintained Accounts Payable are updated with the purchase (supplier invoice), as well as the detailed individual inventory records maintained for the products.
Believe it or not, all of this is done automatically.