Documentation — LedgerOS

Purchasing Workflow

End-to-End Purchasing Flow

Supplier Onboarding

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Purchase Order Optional

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Purchase Invoice Liability & Stock In

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Payment Settlement

Step 2 is optional — create a Purchase Invoice directly from a supplier

Section 1

Managing Suppliers

Creating a Supplier Profile

Go to Directory > Suppliers.
Click Add Supplier.
Fill in the vendor's legal name and contact information.
Tax Setup: Enter the correct Tax/VAT Number — this is crucial for accurate Input Tax reports and VAT filing.
Click Save.

Deletion Constraint: A supplier cannot be deleted if there are any recorded Purchase Orders or Invoices linked to them — this protects the integrity of your financial history.

Section 2

Purchase Orders (PO)

A PO is your internal record of an order placed with a vendor before goods arrive.

Issuance: Create a PO with expected delivery dates and item quantities.
Conversion: When goods arrive and you receive the physical bill, convert the PO into a Purchase Invoice with one click.

Note: POs do not affect your accounts or stock levels. Only the approved Purchase Invoice does.

Section 3

Purchase Invoices (Bills)

Records what you owe the supplier and adds items to your inventory.

Impact of Approval

Financial Impact

Creates a Credit in Accounts Payable and a Debit in Purchases/Inventory and Input VAT accounts.

Stock Impact

Increases the Quantity on Hand for all Goods-type items included in the invoice at the specified warehouse.

Section 4

Recording Expenses

Use Expenses for overheads that don't involve inventory — e.g., Office Rent, Petrol, Internet, Utilities.

Category: Assign each expense to a GL account (e.g., Electricity Expense) for proper P&L categorization.
Payment: Mark as Paid to immediately deduct from your Cash/Bank account.
VAT: Input VAT on expenses is automatically calculated and posted to the Input VAT account for your tax return.