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Purchase Orders, Inward GRN & Vendor Bills

The Purchase and Procurement module in Innoventry ERP manages the Procure-to-Pay (P2P) workflow. It enables businesses to issue purchase orders to suppliers, record inward material receipts at the warehouse gate, verify vendor tax bills, capture batch and serial numbers, and account for landed shipping costs.

1. Creating a Formal Vendor Purchase Order (PO)

A Purchase Order is a legally binding commitment sent to a vendor specifying requested products, agreed unit prices, delivery schedules, and payment terms.

  • Desktop Navigation: Transactions > Purchase Order > New Purchase Order
  • Web / Mobile Route: /main/transaction/purchaseOrder

Step-by-Step Procedure

  1. Select Supplier: In the Vendor / Supplier field, select the supplier ledger (under Sundry Creditors). The system displays the vendor's GSTIN and state.
  2. Order Details: Enter the expected Delivery Date, Payment Terms (e.g., Net 30 Days), and supplier quotation reference number.
  3. Add Items:
    • Select the required raw materials or resale products.
    • Enter the Quantity and agreed Purchase Rate.
    • Applicable GST tax rates load automatically based on the item HSN code.
  4. Save & Dispatch: Click Save. Export the Purchase Order as a PDF to email or print for supplier confirmation.
    • Note: Creating a Purchase Order does not alter warehouse inventory balances or financial accounting ledgers.

2. Inward Goods Receipt Note (GRN) / Inward Challan

Used by the warehouse storekeeper to record physical material arrival, verify quantities, and perform gate inspections before receiving the vendor's financial bill.

  • Desktop Navigation: Transactions > Challan > Inward Challan
  • Web / Mobile Route: /main/transaction/deliveryChallan (Inward mode)

Step-by-Step Procedure

  1. Click New Inward Challan.
  2. Select the vendor and click Import from PO.
  3. Select the active Purchase Order. The item lines and expected quantities populate automatically.
  4. Record Received Quantities:
    • If the supplier shipped a partial shipment, update the quantity to match physical receipt. The remaining quantity remains open on the PO.
  5. Select Warehouse Location: Choose the destination godown/warehouse where stock will be shelved.
  6. Save: Click Save. Inventory stock levels increase immediately, ensuring accurate physical stock counts even if the vendor's tax invoice arrives later.

3. GST Purchase Invoice Entry

Used by the accounts team to record the supplier's commercial tax invoice, compute Input Tax Credit (ITC), and credit the supplier's payable ledger.

  • Desktop Navigation: Transactions > Purchase > New Purchase
  • Web / Mobile Route: /main/transaction/purchase (or /main/transaction/purchase/new)

Step-by-Step Procedure

  1. Click New Purchase.
  2. Supplier Details: Select the vendor ledger and enter the vendor's actual Invoice Number and Invoice Date.
  3. Import from GRN / PO:
    • Click Import from Challan to link an existing inward GRN, or enter items directly for spot purchases.
  4. Verify Tax Breakdown:
    • For local suppliers within your state, verify CGST and SGST amounts match the supplier's bill.
    • For out-of-state suppliers, verify the single Integrated GST (IGST) line.
  5. Save: Click Save. The system:
    • Debits the Purchase Account (taxable value).
    • Debits Input GST Accounts (CGST/SGST or IGST Input Tax Credit).
    • Credits the Vendor's Payable Account with the gross bill amount.

4. Batch Number, Manufacturing & Expiry Date Capture

For pharmaceuticals, packaged food, and chemicals where batch traceability is required by law.

Step-by-Step Procedure

  1. In the Purchase Invoice or Inward Challan screen, add an item with batch tracking enabled.
  2. The Batch Details dialog prompts automatically:
    • Batch / Lot Number: Enter the supplier batch number printed on the packaging.
    • Manufacturing Date: Enter the production date.
    • Expiry Date: Enter the expiry date.
    • MRP & Purchase Rate: Enter the batch-specific MRP.
  3. Click OK.
  4. The system stores this batch in the inventory registry. Subsequent sales will allow cashiers to pick specific batches based on First-Expiry-First-Out (FEFO).

5. Serial Number / IMEI Tracking at Material Inward

For mobile phones, consumer electronics, and machinery where every individual unit has a unique serial number.

Step-by-Step Procedure

  1. Add an item configured for serial tracking.
  2. The Serial Numbers window opens:
    • Scan each serial barcode or IMEI using a 2D/1D scanner into the serial list.
    • Alternatively, use Import Serials to paste comma-separated serial numbers or import from an Excel sheet.
  3. The item quantity automatically updates to match the count of scanned serials.
  4. Save the purchase voucher. Each serial number is tracked in the system from inward receipt to customer dispatch and warranty claims.

6. Landed Cost & Freight Allocation

When purchasing imported goods or raw materials with significant freight, customs duty, or packaging costs, landed cost allocation distributes these expenses into the item unit cost for accurate gross margin reporting.

  • Desktop Navigation: Inside the Purchase Invoice, click Other Charges.

Step-by-Step Procedure

  1. Add items with their raw purchase rates.
  2. In the invoice footer, click Add Other Charges.
  3. Select the freight or customs charge ledger and enter the total expense amount (e.g., ₹5,000 transport charge).
  4. Check Add to Item Cost:
    • The system proportionally divides the ₹5,000 across line items based on taxable value or item weight.
    • The item stock ledger updates with the true landed cost per unit.

7. Purchase Return & Vendor Debit Notes

Used when returning defective goods, damaged shipments, or claiming agreed rate differences from suppliers.

  • Desktop Navigation: Transactions > Purchase Return (or Transactions > Debit Note)
  • Web / Mobile Route: /main/transaction/purchaseReturn

Step-by-Step Procedure

  1. Click New Purchase Return.
  2. Select the vendor and click Import from Purchase Invoice.
  3. Select the invoice containing the defective material.
  4. Enter the quantities to return and specify the rejection reason (e.g., transit damage, failed quality inspection).
  5. Save the voucher:
    • Inventory stock is immediately debited (reduced).
    • Supplier's payable balance is debited (reduced).
    • Input Tax Credit (ITC) is reversed in compliance with GST rules.