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Creating and Managing Purchases

Effectively managing your purchases and vendor bills is essential for controlling costs and maintaining healthy supplier relationships. Ledgerflow provides comprehensive tools to record purchases, track expenses, and manage vendor payments.

Related Resources

Purchase Management Overview​

The Purchases module in Ledgerflow allows you to:

  • Record and track all vendor bills and purchases
  • Manage purchase orders and receipts
  • Track expenses by vendor, category, or project
  • Monitor payment status and upcoming due dates
  • Analyze purchasing patterns and costs

Recording a New Purchase​

Follow these steps to record a new purchase or vendor bill:

  1. Navigate to the Purchases tab on the left sidebar menu

  2. Click the New Purchase button in the top right corner

  3. Complete the following information sections:

    Vendor Information​

    • Vendor: Select the vendor from the dropdown or add a new one
    • Bill Number: Enter the vendor's bill/invoice number
    • Bill Date: The date on the vendor's bill
    • Due Date: When payment is due to the vendor

    Purchase Items​

    • Click Add Item to include products or services purchased
    • For each item, specify:
      • Product/Service: Select from your inventory or enter a description
      • Quantity: Number of units purchased
      • Rate: Cost per unit
      • Amount: Automatically calculated (Quantity × Rate)
      • Tax: Select applicable tax rate if tax is enabled
    • The system automatically calculates:
      • Item amount (Quantity × Rate)
      • Tax amount (if applicable)
      • Net amount (Amount + Tax)
    • Add as many items as needed by clicking the "+" button

    Payment Information​

    • Payment Status: Mark as paid if payment was made at time of purchase
    • Payment Method: If paid, select how payment was made
    • Payment Account: Select which account the payment came from

    Additional Information​

    • Notes: Add any special notes about this purchase
    • Attachments: Upload the vendor's bill or related documents

  4. Review the purchase summary showing:

    • Bill Amount (subtotal before tax)
    • Tax breakdown
    • Net Amount (total including tax)

  5. Click Save Purchase to record the transaction

Viewing and Managing Purchases​

The Purchases list view provides a comprehensive overview of all your purchases:

  • Search: Quickly find purchases by vendor, bill number, or other criteria
  • Filter: Filter purchases by status, date range, or vendor
  • Sort: Arrange purchases by date, amount, or due date

Purchase Detail View​

Click on any purchase to access its detailed information:

  • Overview: See all purchase details and payment status
  • Related Transactions: View linked payments or journal entries
  • Attachments: Access uploaded documents related to the purchase

Editing Purchase Information​

To update a purchase's information:

  1. Navigate to the purchase's detail page
  2. Click the Edit button
  3. Update the necessary information
  4. Click Save to apply your changes

Managing Purchase Status​

Ledgerflow helps you track the status of each purchase:

  • Draft: Purchases that are still being prepared
  • Open: Approved purchases awaiting payment
  • Partially Paid: Purchases with some payments made
  • Paid: Fully paid purchases
  • Overdue: Purchases past their due date without full payment

Purchase Reports​

Ledgerflow offers several purchase reports to help you analyze spending:

  • Purchase Summary: Overview of all purchases by period
  • Vendor Analysis: Spending breakdown by vendor
  • Expense Categories: Purchases grouped by expense category
  • Aging Report: Unpaid purchases grouped by days outstanding

Best Practices for Purchase Management​

  • Record all purchases promptly to maintain accurate financial records
  • Verify vendor bills against received goods or services
  • Categorize purchases correctly for accurate expense tracking
  • Monitor upcoming payment due dates to avoid late fees
  • Regularly review spending patterns to identify cost-saving opportunities

Coming Soon Features​

Future Functionality

The following features are planned for future releases and are not currently available in Ledgerflow:

  • Recurring Purchases: Set up automatic purchase recording for regular bills
  • Purchase Orders: Create and manage purchase orders before receiving bills
  • Approval Workflows: Set up approval processes for purchases above certain amounts
  • Budget Tracking: Compare purchases against department or project budgets
  • Vendor Performance Metrics: Track delivery times, quality, and pricing