Purchase Inwards Goods Journal Overview
Purchase Inwards Goods Journal, a PGJ, is the second item on the SapphireOne Job Projects Costs Data Entry menu. The Purchase Inwards Goods Journal 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 part of the arrived Vendor Order.
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 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.
Any data entry field that has a light blue background is a linked data entry field. If you do not know the exact ID to enter, the user may replace some or all of the characters with the @ or ? symbols. The system will then display a much shorter list for the user to select the correct ID from. For example,if the user enters K@ the system will display all records beginning with K.
When a data entry field heading is underlined this indicates that once an ID has been entered the user may then click on the underlined heading. The system will then do a specific query for the ID as entered and display a list with just the single item in it. The user may then view or modify the item as normal.
Purchase Inwards Goods Journal 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.
- From the Inventory Purchases Mode, 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 .
How to Save a Purchase Inwards Goods Journal Transaction
There are two outcomes when a Purchase Inwards Goods Journal transaction is saved with the tick. These two outcomes include:
- When a Purchase Inwards Goods Journal transaction is created from an Order that is complete with all items in the transaction arrived, it will store all of the inventory stock within the Inwards Goods 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 into 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.
- Before selling any stock the estimated cost should be entered into the Inwards Goods transaction
How to Post the Purchase Inwards Goods Journal Transaction
The Invoice or costs have arrived, so the following procedure as follows must be followed:
- The only way to process a PGJ is to go the Arrivals function.
- Open each PGJ and enter in the final costs as received from your supplier and save it.
- Next Post the transaction which will tell the system to execute the following procedures:
- A second PGJ is created which is a reverse of the original cancelling the initial original PGJ out.
- The actual value of the PGJ held in the G/L suspense account, is now transferred to your normal G/L account.
- Any differences in the cost in the PGJ and the final cost will be entered into the profit loss G/L account.
- A PVI, Purchase Vendor Invoice will be created from the original PGJ with the costs as entered when the Arrivals function is being used to process it.
- PGJ’s will only be different to the original OVI if the Cost of any item has been altered or a partial arrival of the OVI has been executed.
SapphireOne Automatic Posting Functionality
From the documentation above it may be seen that PGJ’s require 2 steps for complete processing – Saving and Posting. If required, SapphireOne also has an automated posting function which may be set up in Master Defaults.
Posting may be done manually, as above, or by the system automatically if the Auto Posting option is selected on the Invoices Page in Master Defaults.
After the Purchase Inwards Goods Journal is Posted
This is not necessary if the Auto Post Purchase Inwards Goods Journal checkbox is selected in Master Defaults.
The only thing that happens is that the values in the Purchase Inwards Goods Journal transaction will now be auctioned against the appropriate General Ledger account.
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 the entire or arrived part of the Order has been transferred into the Inwards Goods Transaction. Remember that the Inventory stock levels are updated at this point.
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.
It should also be noted that no other accounting transactions are entered at this point.
How to Arrive the Purchase Inwards Goods Journal
Follow the following steps 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.
Splitting the Purchase Inwards Goods Journal
- 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.
How to enter information into the Purchase Inwards Goods Journal information Details screen area:
- Vendor ID – Is a linked field and if the user selects the Wildcard @ symbol the system will display a list of 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 – Select the default contact person offered by the system or select another contact person that you wish to attach to this 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 Journal entry.
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 the system 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 the system 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 the system 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 the system will display a search function allowing the user to select a document that is currently on the local computer.
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. The Information Tabs change automatically for the different transactions being viewed.
The tabs for this type of transaction include as follows:
- 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 transaction.
How to enter information in the Purchase Inwards Goods Journal Tracking Details area:
- 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..
Transaction Lines Area
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.
How to enter information into the Purchase Inwards Goods Journal Transaction Lines area:
- Inventory – Is a linked field and the user can use the Wildcard ( @ or ? ) options, to replace part of the Inventory ID to search for the correct ID.
- 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.
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 (/). The system 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 critical details of the 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.
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 the system 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 the system 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. The system 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.