Inventory – Purchase – Purchase Inwards Goods Journal
Purchase Inwards Goods Journal Overview
Purchase Inwards Goods Journal, a PGJ, is the third item in the Data Entry – Purchases drop down Menu. This function facilitates goods to be receipted into inventory stock before the final paperwork has arrived.
A Purchase Inwards Goods Journal transaction is created for all or the arrived part of the Vendor Order and as follows there are two steps in the processing of a Purchase Inwards Goods Journal transaction:
- Once the Purchase Inwards Goods Journal transaction is saved with , the arrived inventory items contained in it are immediately available for sale. The financial component of the Vendor Order, now a Purchase Inwards Goods Journal transaction, is stored in a General Ledger suspense account.
- When the Purchase Inwards Goods Journal transaction is Posted, the financial values are only then written to your General Ledger accounts.
Inwards Goods Basic Operation
This Purchase Inwards Goods Journal function will be documented in two sections in this post. When a Purchase Inwards Goods Journal transaction is created, it is directly linked to a Vendor Order and should require very little data input from the user. The Vendor order automatically populates all data into the Purchase Inwards Goods Journal transaction.
This procedure will be documented here now, but all Purchase Inwards Goods Journal transactions should be checked by the user so complete documentation will follow in this post to enable the user to perform this checking.
For Inventory mode, purchases, the normal order is as follows:
- Requisitions > Orders > Purchases.
- For Purchase Inwards Goods Journal it is, Requisitions > Orders >Purchase Inwards Goods Journal > Purchases.
In setting the system up for Inwards Goods, two new General Ledger accounts will have to be established:
- A suspense account to hold the value of all Inwards Goods transactions while they held in the Purchase Inwards Goods Journal function before they are transferred to your General Ledger accounts
- A General Ledger account to hold any variations between the Inwards Goods values and the Invoice when it finally arrives (Like 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:
- Enter a Vendor ID and, or do a search using the @ symbol. The system will then display a list of Vendors with orders in the system. Selecting the correct order could be a challenge if there are a large number of orders in the system.
- Go to the Tracking area and enter the exact Order Number or the External Reference number into the Purchase Purchase Inwards Goods Journal Journal transaction. The system will then populate the Purchase Inwards Goods Journal transaction with all of the order details.
- Next enter in the cost.This could be Average or Last Cost.
- Finally save the Purchase Inwards Goods Journal transaction with the green .
When Saving a Purchase Inwards Goods Journal transaction there are some differences:
There are two outcomes when an Purchase Inwards Goods Journal transaction is saved with the .
- When a Purchase Inwards Goods Journal transaction is created from an Order that is complete with all items listed as arrived, it will store all of the inventory stock within the Purchase Inwards Goods Journal transaction. It will then delete the original Vendor Order.
- If the order is incomplete, not all items have arrived, the system 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.
Selling the new stock:
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. The system 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 Purchase Inwards Goods Journal:
There are five main areas of the Purchase Inwards Goods Journal screen
1. Details Area
The following documentation is provided so that alterations may be made to the Purchase Inwards Goods Journal transaction when required.
How to enter data into the Details area
- Vendor ID – Is a linked field and if the user can selects the Wildcard @ symbol the system will display a list of Vendor orders in the system for the user to select from. If there are a lot of Orders in the system 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.
The user will note that initially there is a paper clip in the top right hand corner of this area with the words 0 Items after it. The colour of this paper clip indicates that there are no documents attached to this transaction.
When a document has been attached, the paperclip will turn and the word Items will be prefixed by the number of documents currently attached to this transaction.
Within reason any number of documents may be attached to a transaction!
In either case to add a document, select either the or paperclip, and the following Document List pop up will be displayed.
Note: While the screenshot below is from Mac, for Windows users the Document List pop up is identical!
There are eight buttons or icons on this Document List pop up.
- When the button is selected the system will open the currently highlighted document for viewing. (The appropriate software must be installed on the local machine or workstation)
- When the button is selected the system display a popup 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 transaction’s as was the old version).
- When the Scan button is selected the system will access a scanner and following the usual prompts allows the user to Scan a Document Directly into the data file and link it to this transaction. (The appropriate scanner with software must be installed on the local machine or workstation).
- The Save button allows the user to save the currently highlighted document to disk.
- The Link Document button allows the user to link the currently highlighted document to other transaction or transactions in the data file. A popup 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 popup 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 transaction or record.
- When the Add button is selected the system will display a search function allowing the user to select a document that is currently on the local machine or workstation.
How to arrive the PGJ
- Select the arrivals function from the drop-down menu on the main toolbar.
- Select the appropriate PGJ and select the 100% column as seen below.
- Next select the Process button in the lower right-hand corner of the screen.
- The normal Print dialog pop up will be displayed.
- You will have to answer yes for the process to complete.
- 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.
The system 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.
2. Information Tab Area
This area is used to display extra information about the current entry. It should be pointed out that you may only view information here and not alter it.
The Information Tabs change automatically for the different transactions being viewed.
- 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.
- Create Line – Is for creating a new line and Copy Pricing.
- 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.
3. Tracking Details Area
How to enter Tracking information
- Date In – Is the date that this Order has been entered on the system (usually the system 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.
4. Transaction Lines Area
How to enter transaction details
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.
- 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. The system 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.
5. Transaction Footer Area
The Transaction Footer is the information bar along the bottom of the screen, and allows for easy checking of the critical details of a transaction.
These details include:
- 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 the system. 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.
- Many of the tag headings are user configurable. All of the items in the tag drop down lists may be created by the user.
- To add in a new tag to the list simply type it in and move the focus away, (tab away). The system will ask if you want to add the new tag to the list.
- To remove a tag, select it, then re-select it while holding the Control or Command key down. You will be asked if you want to remove it from the list.
More Details Page Purchase Inwards Goods Journal
Watch how to enter Purchase Inwards Goods in SapphireOne
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