Purchasing is the largest spending channel in most trading businesses. Organizing it inside the system protects cash, secures your right to deduct input VAT and builds a clearer relationship with suppliers.
A clear purchasing cycle
- A purchase request from the department in need, with a reason.
- Approval according to permissions and amounts.
- A purchase order to the chosen supplier after comparing quotations.
- A goods receipt with actual quantities in the warehouse.
- The supplier invoice, then payment.
Three-way matching
Before paying, match three documents: the purchase order, the goods receipt and the supplier invoice. Any difference in quantity or price shows up before the money leaves, not after.
Tax invoices and input tax
To deduct VAT on your purchases you need a valid tax invoice issued by the supplier bearing your business name and VAT number, kept in your records for at least six years as the Implementing Regulations require. Recording the invoice in the system and linking it to the purchase order keeps that archive always ready.
Evaluating suppliers
- On-time delivery.
- Returns and short-delivery rate.
- Price trends over time.
- Payment terms and discounts.
Scheduling payments
An accounts payable aging report shows what is due this week and what can wait without penalties, so you plan liquidity instead of being surprised by it.
Ready to apply this to your business?
Try Shumoul for free or talk to our team to choose the right systems.