This guide covers the procurement side of inventory — managing your vendor relationships, creating and tracking purchase orders through their full lifecycle, and configuring the inventory module to match your accounting workflow.

For products, services, and categories, see the companion guide Inventory: Manage Products, Services, and Stock Levels.

---

Getting Here

1. Open the main sidebar and select a Bookkeeping Client.
2. In the client sidebar, expand the Inventory section.

Click Vendors / Suppliers to manage vendor contacts, or Purchase Orders to create and track POs. Click Settings to configure the module.

---

Part 1: Vendors / Suppliers

The Vendors page is your supplier directory. Every company or individual you purchase from lives here, with full contact details, payment terms, and status tracking.

Vendor Page Overview

Top Metrics

Four cards summarize your vendor base:

Filters

The Vendors Table

---

Creating a Vendor

1. Click the Add Vendor button.
2. A dialog opens with the following fields:

Basic Information

Billing Address

Financial Information

Additional Settings

3. Click Create Vendor.

---

Editing and Deleting Vendors

• Edit — From the three-dot menu, select Edit. The form opens pre-filled. Make changes and click Update.
• Delete — From the three-dot menu, select Delete. Confirm in the dialog. You cannot delete a vendor linked to existing purchase orders.

---

Vendor Statuses Reference

---

Part 2: Purchase Orders

The Purchase Orders page lets you create, approve, send, receive, and track every purchase from draft to completion.

Purchase Orders Page Overview

Filters

The Purchase Orders Table

---

Creating a Purchase Order

1. Click the Create Purchase Order button.
2. A form opens with header fields and line items.

Header Fields

Line Items

Each line item represents one product or service being ordered:

• Click Add Line to add more items.
• Click the trash icon on any row to remove it.
• The order total updates automatically as you add or modify lines.

3. Click Create Purchase Order.

The PO is saved as a Draft. From there, you move it through the workflow.

---

Purchase Order Workflow

Every purchase order follows a defined lifecycle. The available actions depend on the current status:

flowchart LR
    Draft -->|Submit for Approval| PendingApproval[Pending Approval]
    PendingApproval -->|Approve| Approved
    PendingApproval -->|Cancel| Cancelled
    Approved -->|Mark as Sent| Sent
    Sent -->|Receive Items| PartiallyReceived[Partially Received]
    PartiallyReceived -->|Receive More| PartiallyReceived
    PartiallyReceived -->|Receive All| Received
    Draft -->|Cancel| Cancelled
    Approved -->|Cancel| Cancelled

Status Actions

How to Move a PO Through the Workflow

1. Create — The PO starts as Draft.
2. Submit for Approval — From the three-dot menu, select Submit for Approval. The status changes to Pending Approval.
3. Approve — From the three-dot menu, select Approve. The PO is now Approved and ready to send.
4. Mark as Sent — From the three-dot menu, select Mark as Sent. The PO has been communicated to the vendor.
5. Receive Items — When goods arrive, select Receive from the menu or open the PO and click Receive. Enter the quantities actually received for each line item. The system updates inventory quantities automatically for inventory-type items.
6. Complete — If some items will never arrive (e.g., discontinued), select Complete to close the PO with the remaining items marked as undelivered.

Cancelling a PO

1. From the three-dot menu, select Cancel.
2. Enter a reason for cancellation.
3. Click Confirm Cancel.

Cancelled POs remain in the list for audit purposes but cannot be reactivated.

---

Viewing a Purchase Order

Click the eye icon or select View from the three-dot menu to open the PO detail view. It shows:

• Header — PO number, vendor, dates, payment terms, shipping method
• Line Items Table — Each item with description, quantity ordered, quantity received, unit cost, discount, and line total
• Order Totals — Subtotal, discount total, and grand total
• Status Badge — Current status with appropriate action buttons
• Notes — Both public and internal notes

From the detail view, you can perform all status-appropriate actions.

---

Part 3: Inventory Settings

Click Settings in the Inventory sidebar menu to open the configuration page. The settings are organized into four cards.

General Settings

Costing Method

Determines how the cost of goods sold is calculated when items are sold:

SKU Generation

GL Account Mappings

Seven searchable account selectors let you set the default accounts for all inventory transactions. Individual items can override the first four.

Each selector is a searchable popover — type an account number or name to find it quickly.

Require Adjustment Reason

When on, every stock adjustment requires a reason to be selected before saving. This ensures a clear audit trail for all quantity changes.

Purchase Order Settings

Saving Settings

Click the Save Settings button at the top-right. A toast confirms the save. Changes take effect immediately for all new items and POs.

---

Frequently Asked Questions

Which costing method should I choose?

FIFO is the most common and matches the physical flow of goods for most businesses. Average Cost is simpler and works well in stable-price environments. LIFO is less common internationally but used in the US for tax purposes. Consult your accountant before changing the costing method.

What happens to existing POs if I change settings?

Existing POs are not affected. Settings changes apply only to new purchase orders and new inventory items. Existing items keep their current GL account assignments unless you edit them individually.

Can I have multiple vendors for the same item?

Yes. The Preferred Vendor on an item is just a suggestion — you can select any active vendor when creating a purchase order, regardless of the item's preferred vendor.

How does receiving items update inventory?

When you receive items on a purchase order, the system automatically increases the Quantity on Hand for each inventory-type item by the amount received. The item's average cost is also updated based on the new purchase.

Can I edit a purchase order after it has been approved?

No. Once a PO is approved or sent, it is locked to preserve the audit trail. You would need to cancel and recreate it if changes are needed.

What is a 1099 vendor?

A 1099 vendor is a US tax classification for independent contractors and unincorporated businesses to whom you pay $600 or more in a calendar year. Flagging a vendor as 1099 helps with year-end tax reporting.

Can I send purchase orders to vendors from the system?

The system tracks the status of POs including whether they have been sent. Depending on your plan, you may be able to email POs directly to vendors or download them as PDFs to send manually.

How do inventory adjustments affect the general ledger?

When you adjust quantity, the system calculates the value change (quantity difference × current cost) and, if GL accounts are configured, creates a journal entry debiting or crediting the Inventory Asset account and the Adjustment, Write-off, or Gain account as appropriate.