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title: "Introduction to Purchasing & Receipting"
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31103193/Introduction%20to%20Purchasing%20%26%20Receipting"
format: markdown
---
Controlling the flow of stock allows a business to take advantage of the savings associated with fostering a working relationship with creditors as well as maintaining a healthy gross profit. Haphazard handling of the Purchasing and Receipting processes can result in an understatement or overstatement of the value of inventory, the consequences of which infiltrate right through a business. For ProStix to work as designed, purchasing staff need to create purchase orders for the required goods from the appropriate supplier.  The goods receiving clerk then receives the goods into stock as soon as they arrive - this adds the goods into the system and creates entries in the Goods Receipts file, awaiting the arrival of the invoice from the supplier. When the supplier invoice arrives it needs to be checked against the entry in the Goods Receipt file.  These invoices are processed through  ProStix Creditors Invoice Approval  where built in/defined controls reconcile the receipt value to the invoiced value.  (Note that invoices for non-stock non-receipted items (for example, office stationery supplies) are processed through  Accounts Payable - Transaction Processing  where there is  no reconciliation  between a stock receipt and the invoice.) The Accounts Payable Clerk checks that the supplier invoice matches the goods that have been receipted into stock and that the invoice total matches what was receipted.  Once the invoices have been added to the Invoice Batch, the batch is completed and posted to the correct general ledger accounts and the invoices are tagged to be paid. All that now remains is that these invoices are selected, either direct debits are processed or  cheques are drawn  as payment to suppliers,  cheque numbers allocated  at the appropriate time and then, the bank account is reconciled. While these are the processes that should be followed, there are always situations that occur to complicate procedures - purchase orders are created for the wrong supplier, supplier costs can vary when a purchase order is raised or when an invoice is processed, stock is incorrectly receipted, products need to be returned and credit notes need to be processed. These complications can be handled smoothly and efficiently if the original transaction is correctly reversed and re-processed with enough detail provided to give a clear trail of the reasons why certain actions have been taken.