Use Item Purchases when you want to record the purchase of inventory items for resale.
Saving an Item Purchase automatically updates your inventory, the general ledger, and creates an outstanding payable.
After item purchases are recorded, use Vendor Payments to create the check to pay the vendor.
Note: Before an item can be purchased in Item Purchases window, the item should have been set up on Item Setup. For more details, see “Items.”
Important: Do not use Item Purchases to enter outstanding payables dated prior to your Current fiscal year. Use the Payables Journal to enter these outstanding payables when setting up your company with MultiLedger.
Item Purchases Field Descriptions
The following section discusses the individual fields on ItemPurchases.
When you save an Item Purchase with Purchase Order checked, the transaction does not affect the General Ledger, and can be modified,deleted, or converted to an Item Purchase at any time. For more details on working with Purchase Orders, see “Purchase Orders.”
If you have Item Purchases that occur on a regular basis, you can save them with the Recurring option checked. You can define the frequency for a recurring entry and have MultiLedger remind you when the transaction should be created. For more details on working with recurring entries, see “Recurring Entries.”
Modify Item Description
If checked, when item is selected, you get a text box in which you can change description or add to it. This can be selected or de-selected for individual line items on the invoice.The modified item will appear as changed on the invoice, in the transaction journal and in the General Ledger.
Enter a document number up to eight characters long to identify the purchase. The last character must be a number.
After the Item Purchase is saved, the document number (or last number of a combination of characters) is automatically increased by one.
You can have MultiLedger automatically warn you if you attempt to save a transaction with a duplicate document number by checking Check for Duplicate Documents on Preferences under the File menu. For more details, see “Setting Program Preferences.”
Select a vendor from the pop-up list. The vendor’s name, address, and notes (as saved on Vendor Setup) are automatically entered. If the pop-up list does not appear, vendors have not yet been set up.
You can add a new vendor or edit existing vendor information without closing the Vendors pop-up list by clicking New (Alt-N on Windows or N on Macintosh) or Edit (Alt-E on Windows or E on Macintosh).
Simply type over the highlighted day or use the +/- keys on your keyboard to increment/decrement the date. You can enter a date from the 30 open months, provided the month isn’t locked, in the form MM/ DD/YY.
The invoice date, along with any selected terms, determine the payable’s due and discount dates.
Due Date, Discount Date, and Discount %, as defined on Vendor Setup, are shown under the Due Date label.
To change any of these values for a particular transaction, click the due date shown. The following dialog box appears:
Edit any of the entries and click OK. Click Cancel to keep the original values. You can also use Vendor Setup to change the terms for the Vendor.
Note: You cannot enter a Due Date more that 240 days from the date of the invoice.
Check Stub Description
Enter a 25 character description that will print on a check stub when you pay for this purchase in Vendor Payments.
You could enter a vendor’s reference (invoice) number or other information to help the vendor identify the transaction when your payment is processed.
Enter any tax paid for the items purchased.
To account for tax paid in your chart of accounts, set up an account for the tax on Chart of Accounts, and then assign it to Sales Tax Paid on Interface Accounts.
Enter the amount of shipping charged by the vendor.
To account for shipping paid in your chart of accounts, set up the account on Chart of Accounts, and then assign it to Shipping Paid on Interface Accounts.
Select the item from the pop-up list. If the pop-up list does not appear, items have not yet been set up.
You can add a new item or edit information for an existing item without closing the Items pop-up list by clicking New (Alt-N on Windows or N on Macintosh) or Edit (Alt-E on Windows or E on Macintosh).
Note: By selecting the option to Modify Item Description, you can change or enter additional text in the item description line. This text will show on an invoice and in the transaction joural reports.
Select a specific job from the pop-up list for the detail line. If the Jobs pop-up list does not appear, no jobs have been set up, or Skip Jobs (Ctrl- K on Windows or K on Macintosh) under the Edit menu is checked.
Enter a quantity that is up to seven digits to the left and two digits to the right of the decimal point (9999999.99). If you have a Reorder Quantity setup for an item, that quantity will automatically fill this field when the item is selected.
When the cursor enters the Unit Cost field, the selected item’s Unit Cost as defined on Item Setup is entered and highlighted automatically.
You can change the Unit Cost for a particular purchase by editing the highlighted amount. You can enter a unit cost up to six places to the left and four places to the right of the decimal point (999999.9999).
When an inventory item is bought in Item Purchases, the Qty on Hand and Average Unit Cost of the item in inventory are adjusted to reflect new items added to those on hand. For more details, see “Item Setup Field Descriptions.”
When the cursor enters the Amount field, the amount will be automatically calculated based on Quantity times Unit Cost. Clicking in the Amount edit box will not automatically calculate the amount. You can change the amount by editing the highlighted value.
New Line (Windows Only)
To enter another detail line to the Item Purchase, click New Line or press ENTER.
This shows the total for the Item Purchase as you add detail lines. When you save the document, the Total amount increases the AccountsPayable account and Inventory account assigned on Interface Accounts.