Purchasing and expenses

What it is for#

The menu's Purchases group is everything going out: who you buy from (Suppliers), what you order (Purchase orders), what arrives and raises your stock (Receipts), what you owe (Accounts payable), what you spend outside merchandise (Expenses) and the cash for small expenses (Petty cash). Every step is posted to the books on its own.

A merchandise purchase goes this way:

The order is optional: if you buy on the spot, start straight with the receipt.

Before you start#

• The permissions: View suppliers and Manage suppliers for suppliers; View purchase receipts and Record receipts for orders, receipts and payables; Record expenses for expenses and petty cash.
• Your products in the Catalog (Load your data).
• To pay in cash, an open cash register (Cash registers); to pay by transfer or check, your Bank accounts (Banks and payment methods).

Suppliers#

1. Create the supplier

   In Suppliers, click New supplier. The dialog has three tabs:

   • Identification: the Type (person or company), the Origin (it decides whether a tax ID is asked for), the tax ID, the Legal name and the Trade name, and an optional photo.
   • Location and contact: address, phones and email.
   • Terms: the Credit days they give you (0 is cash). The due date of what you buy on credit comes from there.

   Click Create supplier.

   

2. Their record

   The list shows each supplier with their tax ID, phone and credit (Cash or the days). On their record you see and edit their details; if your company defined its own fields, they appear under Extra fields.

Purchase orders#

A purchase order is what you asked the supplier for and at what cost, before it arrives. What arrives later is compared against it.

1. Build the order

   In Purchase orders, click New order. Choose the Supplier, the date it is Expected on, write the Notes for the supplier and add each product with Add product: the Quantity and the agreed Unit cost. Click Save draft.

   

2. Send it

   A draft is edited on its own page. When it is ready, Print prints it on a Letter sheet for the supplier and Mark as sent leaves it waiting for the goods.

   

3. Receive it

   When the truck arrives, click Receive: a draft receipt opens with what is still to come at the agreed costs. You carry on in the next section. Each line of the order shows what was Ordered and Received; if it comes in two trips, the order stays Partly received until it is complete.

In the list, To receive shows the orders sent or partly received. The other tabs are All, Drafts, Received and Cancelled. Cancel asks for a reason: what already arrived stays and what is missing is no longer expected.

Purchase receipts#

The receipt is what really arrived. Confirming it creates the lots and raises the stock.

1. Record what arrived

   From an order with Receive, or in Receipts with New receipt if you buy without an order. Fill in the Supplier, the date it was Received on, the Supplier invoice (its number, to find the paper later) and the Branch the goods go into. Add each line with its Quantity and Unit cost. For a product with lots, type the Lot or leave it on automatic; a perishable one asks for its Expiry. Click Save draft.

   

2. Confirm it

   Check the draft and click Confirm receipt. The lots are created, the stock goes up and the debt goes into Accounts payable, due according to the supplier's credit days. If the receipt brings more than ordered, a line the order did not have or another cost, Pixel One shows you the differences and asks you to Confirm anyway.

   

Accounts payable#

Accounts payable gathers what you owe each supplier for confirmed receipts, expenses on credit and opening balances, by age: Current, 1-30 days, 31-60 days, 61-90 days and Over 90. At the top you see the total Payable, what is Overdue and what is Over 90 days.

1. Pay

   On the supplier's row, click Pay. Tick the documents you are paying and type the Amount to pay: if it is less than the total, it is a partial payment that covers what is due first.

2. Choose the payment method

   Under Payment method: cash comes out of your open cash register; transfer, card or check come out of the bank account you choose (a check asks for its Check number). Type the Reference and click Pay.

   

3. Print the receipt

   Paying opens the Payment receipt to print, with room for the supplier's signature. You reprint it in the Payments tab, where a payment is also voided with its reason: what was paid is owed again.

Did you already owe a supplier before using Pixel One? Record it with Opening balance: the supplier, the Invoice or reference, the amount and when it is Due.

Expenses#

An expense is what the company pays outside merchandise: power, rent, fuel, a repair.

1. Record the expense

   In Expenses, click New expense. Fill in the Date, the Account (where the money went, from the chart of accounts), the Description, the Supplier (optional, except on credit) and the Supplier invoice, and the amount.

2. How it was paid

   Under How it was paid you choose:

   • cash: comes out of your open cash register;
   • transfer or Debit card: comes out of the bank account you choose;
   • On credit: stays as a debt to the supplier in Accounts payable;
   • Petty cash: comes out of the fund you choose (you see what it holds).

   Attach the Receipt (photo or PDF) and click Record.

   

The list shows the expenses in the range (this month when you open it), what was Spent and the total By account. An expense is not edited: Void with a reason reverses its entry and, if it was paid in cash, the money returns to your open cash register. Then record it again.

Petty cash#

Petty cash is a fixed cash fund for small expenses, with its custodian. When it runs low, it is replenished up to the fixed amount.

1. Create the fund

   In Petty cash, click New petty cash fund: the Name, the Fixed amount (what it should hold when full) and the Custodian, who keeps the cash and the receipts. Click Create petty cash fund. It starts empty.

   

2. Put the money in with Replenish

   Replenish suggests what it lacks to get back to the fixed amount. Under Where it comes from choose Bank account or My open cash register.

3. Record each expense

   Record expense opens the same expense dialog with Petty cash as the payment method. An expense larger than what the fund holds is refused: replenish it first. When the fund drops below a quarter, its card says To replenish.

   

The fund's page shows each Expense and Replenishment with the balance after each one, and exports to CSV.

By country#

Common mistakes#

• "The receipt does not raise the stock." It is still a draft: open it and click Confirm receipt.
• "I cannot void the receipt." Something from it was already sold or paid. Use Return to supplier.
• "A perishable product needs an expiry date." Type the lot's Expiry on the line.
• "An expense on credit will not save." On credit needs the supplier.
• "It will not let me pay in cash." Open your cash register first; and a cash payment cannot be larger than what is in the drawer.
• "Petty cash refuses the expense." It holds less than you are spending: click Replenish.

Next step#

The money that moves between the cash register and the bank: Cash registers and Banks and payment methods.