Procurement and purchasing

Procurement is the buy side of WorkOSync. It walks a purchase from a request for quotation through supplier quotations, a purchase order, goods receipt and finally a supplier purchase invoice (the bill), so what you ordered, what arrived and what you owe always agree. Every receipt posts to stock and every bill posts input VAT to the ledger for the VAT 201 return.

The purchasing workspace

Open Run then Purchasing, or go to /purchasing. The page is titled Purchasing with the subtitle "Request for quotation, purchase orders, goods receipt and supplier bills". KPI tiles summarise the pipeline: Open RFQs, Open purchase orders (with their value), Awaiting receipt and Bills to pay. The header carries a New RFQ and a New purchase order button and an Export menu that downloads the list as purchasing.

A tab row runs across the five documents in the cycle, each with a count badge: RFQs, Supplier quotations, Purchase orders, Goods receipts and Purchase invoices. Each tab is a filtered list with a search box that matches the document number and the supplier name.

The purchasing cycle

The documents hand off to each other in one direction, and each remembers where it came from:

1. Request for quotation

New RFQ opens a form with the items you want to price (the same item picker as on a quotation), a quantity per line, a required-by date and one or more suppliers to send it to. Saving creates an RFQ numbered RFQ- and lists it under the RFQs tab as Open until a quotation is received against it.

2. Supplier quotations

A supplier quotation records a vendor's prices against an RFQ: the supplier, the lines with their quoted rate, the quotation validity and any lead time. When you have quotations from several suppliers for the same RFQ you can compare them side by side and raise a purchase order from the one you choose, which copies its supplier and rates onto the PO.

3. Purchase order

New purchase order opens the PO form: the Supplier, the Order date and Required-by date, the lines (item, quantity, rate, amount) and a tax line. The summary shows the net total, VAT at 5% and the grand total. Saving submits the PO and it appears under the Purchase orders tab with a fulfilment status of To receive. A PO is your commitment: it does not post to the ledger on its own, it posts when the goods are received and the bill is booked.

4. Goods receipt

When a delivery arrives, raise a goods receipt against the PO. You confirm the quantity received per line (which can be a part of the ordered quantity for a split delivery) and the warehouse it goes into. Posting the receipt increases on-hand stock in Inventory and posts the value to the Inventory - Stock in Hand account, with the other side held in a received-not-billed account until the bill arrives. The PO moves to Partially received or Fully received.

5. Purchase invoice (supplier bill)

The supplier's purchase invoice is the bill you owe. Raised against the PO or the goods receipt, it carries the lines, the 5% VAT and the supplier's own invoice reference and date. Posting it books the payable to Accounts Payable and the VAT to the VAT Recoverable (Input) account, clears the received-not-billed balance, and the bill then appears in Accounting under Bills and on the supplier statement. Pay it from Payments or the check register.

Raising a purchase end to end

1. Price it

   Create an RFQ for the items you need and send it to your shortlisted suppliers, or skip straight to a PO when the price is already agreed.

2. Compare and order

   Record the supplier quotations that come back, pick the best, and raise the purchase order from it.

3. Receive the goods

   When the delivery arrives, post a goods receipt against the PO for the quantity that actually turned up. Stock and valuation update immediately.

4. Book and pay the bill

   Enter the supplier purchase invoice against the receipt, check the three-way match, then settle it in Payments.

VAT on purchases

A UAE supplier bill charges 5% VAT, and that input VAT is recoverable: WorkOSync posts it to the VAT Recoverable (Input) account and it flows into box 9 (standard-rated expenses) of the FTA VAT 201 return, reducing the net VAT you pay. Imports are handled too: a bill from a foreign supplier with no VAT charged has 5% output VAT self-accounted under the reverse charge (box 6) and recovered again (box 10), so an import is VAT-neutral when you can fully recover. Keep the supplier's TRN on the supplier record so the recoverable VAT stands up to an FTA audit.