Purchasing and supplier accounts
Record the supplier invoice once: stock goes up, cost is re-averaged and the supplier balance updates. When you pay, any cash discount is posted to its own account.
Trade discounts lower the cost
A discount the supplier gives on the invoice is spread over the items and lowers their cost. It appears under purchases on the income statement so you see net purchases.
Cash discounts are income
If a supplier forgives part of the bill because you paid cash, it is posted to "discounts received" under other income, and the balance drops by both the payment and the discount.
Purchase returns
Send goods back to a supplier: stock goes down, the value is posted to "purchase returns", and what you owe drops or the supplier refunds you.
What you can do
- Cash and credit purchase invoices
- Purchase orders converted to invoices
- Trade and cash discounts
- Returns to suppliers
- Supplier statements and aging
- Pay by cash, bank or wallet
Frequently asked questions
What is the difference between a trade and a cash discount?
A trade discount is on the invoice and lowers the cost of goods. A cash discount happens at payment and is posted as income in "discounts received".
Can I see everything I owe suppliers?
Yes. The dashboard shows total supplier payables, and every supplier has a statement of transactions.
Does average cost change with every purchase?
Yes. The item cost is re-averaged after every purchase invoice or return.
Related modules
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