05 — Buying stock

For the storekeeper, who orders and receives, and a manager or the admin, who approves and pays.

1. How buying works#

Storekeeper        │ Manager / Admin          │ Storekeeper            │ Manager / Admin
───────────────────┼──────────────────────────┼────────────────────────┼─────────────────────────
1. Purchase order  │ 2. Approve, send to      │ 3. Receive the delivery│ 4. Record the supplier's
   (Draft)         │    supplier (Sent)       │    (stock goes up)     │    invoice, then pay it

A storekeeper can't approve their own order. That's on purpose: someone else checks what is bought and at what price.

2. Before you start#

• The supplier exists, with payment terms (chapter 04).
• The items exist, ideally with a Preferred supplier, Low stock alert at and Reorder qty.

3. Raise a purchase order (storekeeper)#

1. Sign in as Store. The Stock overview shows what is low or out.

   

2. Purchasing › New purchase order.

3. Supplier: pick the supplier. Deliver to: the store the goods go to. Expected: the delivery date.

4. Add low-stock items from this supplier. Amber adds every low or out item this supplier sells, with the reorder quantity. Or add lines yourself with Add item.

5. Check each line's Qty and Price / unit. Change the price to what you agreed.

6. Save draft. The order shows Draft and Waiting for a manager to approve.

4. Approve and send it (manager or admin)#

1. Inventory › Purchase orders, then tap the draft order.
2. Check the items, quantities and total, then Approve.
3. Send it to the supplier: Send on WhatsApp opens WhatsApp with the order typed out, or Download PDF to email or print it.
4. Mark sent, so everyone knows the supplier has it.

To stop an order, Cancel PO.

5. Receive the delivery (storekeeper)#

1. Receiving. Orders still to be delivered are at the top, under Expected deliveries. Tap the order.

   

2. Delivery note / invoice no.: the number on the supplier's paper.

3. For each line, type the quantity in Received. If something was refused (bad quality), type it in Rejected.

4. Optional: Add photo of the delivery note, a Batch number, an expiry date for perishables.

5. Notes: anything wrong, such as a shortage.

6. Receive into stock.

Amber creates a goods received note (GRN-…). The stock goes up straight away, and the item's average cost is updated with the new price.

If less arrived than ordered, the order shows Partial and stays under Expected deliveries for the rest. Receive it again when the rest comes.

6. Record the invoice and pay (manager or admin)#

Receiving goods doesn't create a bill by itself. When the supplier's invoice comes:

1. Inventory › Payables › Record invoice.
2. Supplier, Invoice number, and the eTIMS / CU invoice no. from the KRA receipt if it has one.
3. Under Deliveries on this invoice, tick the deliveries it covers, then Use as amount.
4. VAT (KES): type it, or tap 16%. Leave Due date empty to use the supplier's payment terms.
5. Save invoice. It appears under Invoices as Unpaid, with the due date.

To pay:

1. Pay on the invoice.
2. Pick how: M-Pesa, Cash, Bank transfer or Cheque. Type the M-Pesa code or reference. For cash taken from the petty cash box, tick Paid from petty cash.
3. Record payment. The balance goes to zero and the payment shows under Payments and in the accounting cashbook (chapter 08).

Worked example#

After the delivery, chicken is in stock again, so Chicken pilau comes back on the menu by itself, showing how many plates the stock allows.

Other ways to buy#

• Purchase runs: someone takes a cash float to the market. Record the float, the goods bought against it (Receiving, Paid from purchase run), and the change returned.
• Requisitions: the kitchen asks the store for stock; approved requisitions can become purchase orders.
• Receive goods without an order, for a cash purchase: Receiving › Receive goods, supplier Market / cash purchase.

Common problems#

Checklist#

• A purchase order went from Draft to Approved to Sent
• The delivery is received with the real quantities, and the stock went up
• The supplier's invoice is recorded against the delivery, with the right due date
• Paid invoices show a zero balance, and unpaid ones appear under Outstanding