VISUAL NEWSLETTER – OCT 2007                         




One of the accounting systems that many companies fail to implement is Purchasing. This module, which works in conjunction with Libra’s Inventory and Accounts Payable modules, has a number of distinct features that can be of benefit to any company that wants better control over various Inventory and Accounts Payable issues.


The program starts with the entry of a Purchase Order. This entry is then used to either print or e-mail a purchase order to their supplier. The quantities ordered and the prices quoted are recorded for later comparison to quantities received and the final pricing on invoices.


The program allows you to print reports for outstanding Purchase Orders to aid in expediting product orders that may impact manufacturing schedules or customer order deliveries.


The next stage in Purchasing involves receiving the goods and is usually entered from the suppliers packing slip. The goods received are match up with the original purchase order and the quantities received are compared with those ordered. Minor short shipments can be tagged as complete or remain on back order as required.


Once the receiving data has been entered and proofed it is transferred to the inventory module, which updates the status of the purchase orders affected and creates receipt transactions in the inventory. Reports can be run for goods received but not yet invoiced to form the basis of accruals accounting. This is especially useful at year-end.


The next phase in purchasing is the entry of invoices, which are match to the original purchase orders to see if the quantities and prices on the invoice match that on the PO. The quantity invoiced can be compared to the quantity received and quantity already invoiced. This process often catches situations where you are invoices for more items than you ordered. It also indicates situations where you have been invoiced a second time for the same goods. Once you have checked your invoice entries they are transferred to the Accounts Payable Module. This again updates the status of the purchase order.




The main benefit of the Purchasing module is the additional control that it provides to manage Inventory and Accounts Payable. The file inquiry and reporting allows you to easily determine the status of any purchase order and the related inventory. Questions like “Have I ordered product X?” or “Has it arrived yet?” or “Was the pricing the same as quoted?” are easily answered.


The normal operation of the system also provides a historical database to allow you to determine where you have ordered products from, when and at what prices over the years.


This can be a useful reference if the normal supplier is out of stock at the moment.


Some of the other useful features that the Purchasing System provides are:


-         Currency conversion


-         Data Export To Excel


-         Multiple Ship To/From Locations


-         Vendor Specific Notes Feature


-         Product Specific Notes Feature


-         Supplier Unit of Measure conversion


-         Automated Order Creation


-         Based On Inventory Levels


-         Based On Customer Orders


-         Job Cost Reporting


-         Customs Import Analysis


-         Supplier Analysis Reporting


-         Job Based User Security Controls


For more detailed information on Purchasing please contact Visual Accounting directly.