Purchase Inwards Goods Journal

Purchase Inwards Goods Journal Overview

Inwards Goods is an essential requirement for warehouse logistics inventory management. The main purpose of an Inwards Goods Transaction is to allow goods to be receipted into stock before the final paperwork has arrived. More often that not, the receipting of inventory is processed before the finalised Vendor Invoice has arrived. Warehouse and logistics management will typically arrive stock from a delivery docket. It is essential that these goods are physically receipted and are available for immediate dispatch or manufacturing to the client. These inwards goods inventory items can be arrived at an estimated cost, and when finally receipted an Inwards Goods Journal will be created automatically, reversing the estimated or average cost and replacing it with the final arrived cost. This may include on-costs such as freight, insurance, tax and duties. Inwards goods supports the consolidation and receipting of stock across multiple purchase orders in one delivery.

Purchase Inwards Goods Journal (PGJ) is the third item in the SapphireOne Inventory Purchases Data Entry menu. This function allows the user to receive goods into inventory stock before the final paperwork has arrived. SapphireOne’s Inwards Goods functionality compares the actual quantity delivered with the consignment/delivery note or EDI record (Electronic Data Interchange) and helps to identify if the delivery matches from a commercial point of view. SapphireOne’s Inwards Goods function allows for quick and easy checking, and in doing so keeps the tight schedule of the logistics and warehouse department running smoothly. In addition, errors made when recording the larger quantities of counted inventory are eliminated. This process saves time and money and improves the productivity within the business.

There are two main steps in the processing of a Purchase Inwards Goods Journal transaction. These are:

  1. Once the Purchase Inwards Goods Journal transaction is saved with , the arrived inventory items contained in it are immediately available for use. The financial component of the Vendor Order, now a Purchase Inwards Goods Journal transaction, is stored in a General Ledger inventory suspense account.
  2. When the Purchase Inwards Goods Journal transaction is Posted, the financial values are then written to your Inventory Asset General Ledger accounts.

Inwards Goods Operation

When creating a new Purchase Inwards Goods Journal (PGJ) for purchasing, by entering the Vendor ID you will be presented with a list of all available current Order Vendor Invoices (OVIs) for this Vendor. You will be able to select a particular order which will automatically populate the Order Vendor Invoice data and allocate all lines from the OVI into the Inwards Goods Journal. 

Two General Ledger accounts are required to be established before creating a Purchase Inwards Goods Journal.

  1. A suspense account to hold the value of all Inwards Goods transactions while they are held in the Purchase Inwards Goods Journal function before they are transferred to your General Ledger accounts.
  2. A General Ledger account to hold any variations between the Inwards Goods values and the Invoice when it arrives. For example, an FX profit and loss account.

Any Inwards Goods transaction must be linked to a Vendor Order, and there are two methods of doing this:

  1. Enter the Vendor ID or do a search using the ‘@’ or ‘?’ symbols. SapphireOne will display a list of all Vendors with available orders in SapphireOne. By selecting the correct Vendor you will be presented with a new screen which will now have a list of all available OVIs. Select the correct OVI in order to populate all the transaction lines within the PGJ.
  2. In the Tracking Area, enter the exact Order Number or the External Reference number into the Purchase Inwards Goods Journal transaction. You can search for the Order Number by entering the ‘@’ or ‘?’ symbols and selecting the correct order. SapphireOne will then populate the Purchase Inwards Goods Journal transaction with all Vendor order details. 

How to Save a Purchase Inwards Goods Journal Transaction

There are two outcomes when saving a Purchase Inwards Goods Journal Transaction with the green tick icon  

  1. When a Purchase Inwards Goods Journal transaction is created from an Order that is complete with all items listed as arrived, SapphireOne will store all of the inventory stock within the Purchase Inwards Goods Journal transaction. It will then delete the original Vendor Order.
  2. If the order is incomplete, not all items have arrived, SapphireOne will proceed as follows:
    • The original Vendor Order will be re-written with the reduced Inventory quantities that have not arrived yet, and save it.
    • The arrived stock is now moved to the new Purchase Inwards Goods Journal transaction and saved. Once saved, Inventory items within it may then may be processed immediately through to sales as with other items in your inventory.

The new stock in a Purchase Inwards Goods Journal transaction is usually sold on as based on the Last Cost or Average Cost for the Inventory items.

Posting the Inwards Goods Transaction using the Arrivals function

This is not necessary if the Auto Post checkbox is selected in Master Defaults.

The Invoice or costs have arrived so the following procedure is followed. It is important to note, a second PGJ will be created that is an exact reversal of this one when the shipment has arrived using the Arrival function.

Note that the new Purchase Inwards Goods Journal Transaction has the same Order number/internal reference numbers of the original order which has been deleted as all or part of the order has been transferred into the Purchase Inwards Goods Journal Transaction. Remember that Inventory stock levels are updated at this point.

Open up the un-posted Purchase Inwards Goods Journal transactions and enter in the actual cost into each transaction.

  • Then post these transactions. SapphireOne will move the values from the suspense General Ledger account through to your normal General Ledger accounts.
  • Any variation in the cost that you have just entered will be sent to the plus or minus general Ledger account that has been created to hold these values. Your account will be best placed to work out how to manage these profit and Loss account.
  • At the same time a Purchase order will be raised in the same manner as when converting an Order directly to a Purchase in Inventory mode.

Details Page

Details Area

  • Vendor ID – Is a linked field and if the user can selects the Wildcard @ symbol SapphireOne will display a list of Vendor orders in SapphireOne for the user to select from. If there are a lot of Orders in SapphireOne this could be a very long list!
  • Contact – Accept the default contact person or select the contact person you wish to attach to this vendor invoice.
  • Address – This field is the mailing address which automatically populates from the vendor record.
  • Delivery address from defaults – If you have alternative delivery addresses saved in the vendor address page you can select them from a drop-down list.
  • Copy Mailing address to the delivery address – Copy the mailing address to the delivery address field using the .
  • Document Paperclip – Scan and attach any documents relating to the Purchase Inwards Goods.

If you attempt to create a Purchase Inwards Goods Journal for a Vendor Order that has already been partly processed, and it had not all arrived at the time of creating the initial Purchase Inwards Goods Journal transaction, SapphireOne will only display the quantity remaining in the Vendor Order as it was re-written when the earlier Purchase Inwards Goods Journal transaction was processed.

There is a paper clip in the top right hand corner of the first page of all data entry and all inquiry screens within SapphireOne. Within all data entry and inquiry screens there is also a separate page just for managing documents i.e. version control.

The red colour of the paper clip indicates that there are no documents attached to this transaction. When a document has been attached, the paperclip will turn green and the word Items will be prefixed by the number of documents currently attached to this transaction or relevant record. An infinate number of documents may be attached to a transaction or record at any time.

In either case to add a document, select either the or paperclip, and the following Document List pop-up will be displayed.

Please note, the Document List screenshot below is identical for both Mac and Windows users.

Any type of document can be attached using the Paperclip. Examples of types of documents include Adobe Acrobat, Spreadsheet Documents, Word Processor Documents, Photo Files, JPEG, CSV, HEIF, MP4 files.

Documents can be attached using Drag & Drop functionality. To use this functionality simply drag a document from the local computer into the Document List screen and it will append automatically.

There are eight buttons and icons on the Document List screen. These are as follows:

  • When the button is selected SapphireOne will open the currently highlighted document for viewing. The appropriate software must be installed on the computer or device before opening.
  • When the button is selected SapphireOne displays a pop-up which asks the user if they want to Import a New Version of the currently highlighted document. The new version will still be linked to any transactions as was the old version.
  • When the Scan button is selected SapphireOne will access a local or network scanner, and following the usual prompts allows the user to Scan a Document Directly into the data file and link it to the transaction. The appropriate scanner with software must be installed on the local machine or network.
  • The Save button allows the user to save the currently highlighted document to the disk.
  • The Link Document button allows the user to link the currently highlighted document to other transaction or transactions in the data file. A pop-up will be displayed allowing the user to make their selection.
  • The Link Existing document button allows the user to link an existing document in the data file to this transaction or record. A pop-up will be displayed allowing the user to make their selection from a list of documents.
  • The Delete button when selected will delete the currently highlighted document.
  • When the Plus button is selected SapphireOne will display a search function allowing the user to select a document that is currently on the local computer.

How to arrive the PGJ

  1. Select the arrivals function from the drop-down menu on the main toolbar.
  2. Select the appropriate PGJ and select the 100% column as seen below.
  3. Next select the Process button in the lower right-hand corner of the screen.
  4. The normal Print dialog pop up will be displayed.
  5. You will have to answer yes for the process to complete.
  6. Now note the two PGJ’s in the Transaction list.

Note: both are now posted in SapphireOne default and the PGJ has been arrived.

Finally, since the transaction has been posted, SapphireOne will create second General Ledger journal which cancels out the first journal.

SapphireOne takes the available funds and stock and creates a normal PVI as seen below.

It also auto posts the PVI immediately.

Purchase Inwards Goods Journal – Splitting the Order
  • The only difference is that SapphireOne re-saves the OVI Order Vendor Invoice with reduced quantities.
  • Each time a PGJ is created for part of the order, two PGJ’s and one PVI are created.
  • Once SapphireOne determines all of the order has been converted to a final PGJ, only then will it delete the original Order Vendor Invoice OVI.

Information Tab Area

The Purchase Inwards Goods Journal Information Tab area is used to display extra information about the current entry. You have the ability to view the information here, not alter it. Click on the Information Tabs to select the details you would like displayed.

  • Vendor – Displays Vendor details including ABN, Total Owing, Credit Remaining, Owing + Unposted, Warning Message, Turnover, Credit terms, Product, last transaction date etc.
  • Invoice – Displays a list of recent invoices. A purchase invoice can be copied by using right click and select Copy Transaction.
    By selecting a historical transaction and then right mouse click you can: Copy Transaction, Copy Lines – Copy the relevant lines and by selecting Open In Inquiry this will open the selected transaction in the new inquiry screen.
  • Lines – When a transaction line is selected, this tab displays history of the Inventory item. Included in each transaction is the Qty ordered and Amount, Sequence N°, any Discount Code and percentage allocated, Date and Type.
    • Create Line – Is for creating a new line and Copy Pricing.
      Inventory – When a transaction line is selected, this tab displays inventory details such as available stock, stock on order, standard price, next arrival date, default vendor.
  • Pricing – When a transaction line is selected, this tab displays Pricebooks which apply to the item for this vendor.
  • Items – When a transaction line is selected, this tab displays additional inventory details.
  • Controls – This tab displays information about the transaction such as the date it was created and who created it.
  • Add/Deduct – This tab displays additions and deductions details.
  • Error Code – Displays any error code such as negative stock, batch error and period error.

Tracking Details Area

The Purchase Inwards Goods Journal Tracking Details area stores tracking details relating to the current Date, Delivery Date, Invoice No, Sales Rep and Carrier.

  • Date In – Is the date that this Order has been entered on SapphireOne (usually SapphireOne date).
  • Arrival – When converted from a Vendor Order (OVI) to a Vendor Purchase (PVI), the Arrival Date will automatically become the Date In for the PVI.
  • Order No – External reference number.
    Invoice No – Internal reference number and automatically generated.
  • Rep ID – Sales representative ID.
  • Period – Period matching the date, set in company controls.
    Auto Allocate to Project – Tick checkbox if you would like to automatically allocate to a specific project set up in Job Project mode.

Transaction Lines Area

  • Inventory – Is a linked field and the user can use the Wildcard [( @ or ? ) and TAB ] option, or simply type part or all of the product name to search for the Inventory code.
  • Arrival – This is the number ordered minus the number on back ordered.
  • Rate – This is the Line Item default rate. You can enter in a new rate but note this is the rate excluding tax.
  • Discount – Enter any Discount percentage allocated.
    Tax code : You may accept the default code or enter in a new tax code.
  • Tax % – For Australia, USA, New Zealand and other countries, the Vendor Tax Code controls the rate. In Australia, the Inventory file will override on GST free or exempt items as required.
  • Tax Amount – This will automatically populate with the total amount of tax for each individual line.
  • Total – This is the total cost for each individual line item including any tax.
  • Arrival Ex-Tax – This is the cost before Tax.
    There are two locations within a Vendor Order where the Ex-Tax value is displayed. In the line entry area where it is displayed on a line by line basis, and in the totals area at the bottom of the screen as a value for the entire order. This is for users who are arriving orders and need to be able to view the Ex-Tax pricing within the Order.
  • Project – Is a linked field and the User can use the Wildcard [ (@ or ? ) and TAB ] option to search for the Project ID. SapphireOne will display the Project Name.
  • Don’t Print – Select Don’t Print to stop the line below from printing on the Invoice. The amount from this line is still included in the total value of the Invoice.
  • Tariff – The Tariff ID number will display in this field.
  • Duty – This is the Duty amount that may be either a fixed dollar amount or a percentage.
  • Duty % – Is the duty amount as a percentage.
  • On Cost Factor – The On Cost Factor is calculated as (Cost of Goods + On Costs) / Cost of Goods. This can be inserted manually or automatically populated.
  • Unit – Populates the unit details as set in the inventory item, for example Set, Each, Ctn, Kg, etc.
  • Ordered – Enter the quantity being ordered.
  • B/O – Enter the quantity to be backordered. For you to be able to access the backorder function, stock type will need to be set to Normal.
  • Weight/Area – This field displays the total weight or area x order quantity. The user may enter the total weight required which will automatically update the order quantity.
  • Carton – Displays the total cartons: quantity multiplied by the carton quantity set in Inventory details.
  • Pallet – Displays the pallet quantity: quantity multiplied by the pallet quantity set in Inventory details.
  • Final Cost – Is the Final Cost of Inventory ordered including Tariff, Duties and On Cost Factors.

As you enter a transaction, a summary of the transaction appears in a single line. You can view or modify a line by selecting it, then proceed to view or modify in the data entry area above.

All of the lines in the Transaction Lines area, are listed here. The list itself, only displays the basic details of each Line. You cannot directly edit from this list.
To view or modify any line in this Line Listing area, select or highlight a line.
All of the additional data entry fields will then be displayed for you immediately above the list of lines.
From there the user is able to view or modify all of the data entry fields for the line as required.

The easiest way to add a line is with the keyboard shortcut. Hold the  (Command or Control key down and select forward slash (/). SapphireOne will then place the cursor in the Account ID data entry field ready for the entry of a new line. Alternatively, selecting the button will also place the cursor in the Account ID data entry field, ready for the entry of a  new line.
Lines may also be added to the transaction by clicking on the button or selecting the button to delete the currently highlighted line.

Transaction Footer Area

The Purchase Inwards Goods Journal Transaction Footer is the information bar along the bottom of the screen, and allows the user to easily check the critical details of a transaction.

  • Sequence Number – Is the automatically generated unique Sequence number.
  • Batch – The Batch field shows the total for all orders entered in the current group.
  • Amount – Total Amount is the Tax free amount of the order.
  • Arr Ex-Tax – This is the cost before Tax.
  • Ordered Weight – Is the Total Weight of the Vendor Order.
  • Weight Area – Weight/Area is the total weight or area of all lines entered on the order.
  • Cartons – Is the calculated total quantity of Cartons.
  • Pallets – Is the calculated total quantity of Pallets.
  • Discount – This Discount box allows the user to apply an overall discount percentage to the order.
  • Tags – The user can select a saved Tag from this Drop down or add a custom tag.
  • Add/Remove – The user can click on the + to add a line or – to remove a transaction line.
  • Note that a tag of HOLD is hardwired into SapphireOne. When it is selected the transaction may not be posted until the tag status of HOLD is removed or altered to something other than HOLD.
  • Most of the Tag Headings are user configurable.
    • The Tag Headings may be re-named by going to:
      Utilities \ Controls \ Master Defaults \ then select the appropriate functions Page
  • All of the items in the Tag drop down lists may be created by the user.
    • The drop-down menus are created by entering in an item not on the list, then (tab away). SapphireOne will ask if you want to add the new tag to the list.
    • To remove a tag, hold the Control or Command key down and then select it. You will be asked if you want to remove it from the list.

SapphireOne checks that each transaction entry is complete and balanced before allowing any saving operation. When the Out of Balance is 0.00 the tick, will activate in the top tool bar indicating to the user that the transaction is ready to be saved. When more than a single transaction is selected, Blue will also be displayed on the main toolbar. See below for additional details.

You can save your Transaction in one of three methods:

Select the Tick when it is activated. This will save the current transaction and return the user to the main tool bar or the list.
When multiple transactions have been selected the user may click on the tick on the tool bar with the results as seen as above.
Click on either of the the Arrows. This will tell SapphireOne to save the current transaction and open the next transaction in the list ready for data entry or modification. Also note that for what ever page is open in the transaction SapphireOne will move to the next transaction displaying the exact same page. I.e. Terms page to Terms page. Very handy when checking the same data in multiple items.
Selecting the Enter Key on the keypad. SapphireOne will then save the current transaction and opens another transaction of the same type ready for data entry. Very handy when entering multiple transactions of the same type. I.e. Client Receipt, Client Receipt.

Watch how to enter Purchase Inwards Goods in SapphireOne

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