Configuring and Setting Up Purchase Settings

The purchase settings control how purchase invoices and the purchase cycle work in the system: numbering, discounts, updating purchase prices, default payment and receipt, stock requisitions, accounting entries, the default tax, and the custom statuses for purchase requests, quotations, and purchase orders. This guide explains each setting, its options, its default value, and its effect on the system.

Before You Start

• You need the permission to edit general settings.
• Open the purchase settings from the Purchases menu. The page shows cards for each group of settings.
• After editing any page, click Save, or Discard to cancel the changes.

Purchase Settings Page Cards

Group	Card	What It Opens
Purchase Invoices	Invoice Settings	The invoice settings page (explained in detail below).
Purchase Invoices	Invoice Statuses	Manage custom statuses for purchase invoices. Appears when custom invoice statuses are enabled.
Purchase Invoices	Additional Invoice Fields	Add custom fields to the purchase invoice.
Purchase Invoices	Purchase Order Designs	Design templates for the printed purchase invoice.
Suppliers	Additional Supplier Fields	Add custom fields to the supplier’s data.
Suppliers	Related Supplier Forms	Additional forms linked to the supplier.
Orders and Purchase Cycle Section	Purchase Cycle	The purchase cycle page (explained below).
Orders and Purchase Cycle Section	Purchase Request, Quotation Request, Purchase Quotation, and Purchase Order Statuses	Manage the custom statuses for each document. Each card appears when its statuses are enabled.
Orders and Purchase Cycle Section	Print Templates	Print templates for purchase documents.

Open Invoice Settings. The page is divided into six sections:

1. Issuing the Invoice

Setting	Options (Default)	What It Does
Next Invoice Serial Number	Display only	The number that will be given to the next purchase invoice. To change it, click Auto Number Settings (the default prefix is PI).
Custom Invoice Statuses	Enabled / Disabled (Disabled)	Lets you create statuses specific to your workflow (such as “Under Review”), assign them to purchase invoices, and use them in filtering and reports. Create the statuses from Manage Custom Statuses.

2. Pricing and Discounts

Setting	Options (Default)	What It Does
Discount Application Method	Invoice total / Per line / Discount on invoice total and per line together (Together)	Determines where the discount field appears in the purchase invoice: a discount on the total only, a per-line discount column only, or both.
Automatically Update Product Prices Based on Purchase Invoice Data	Enabled / Disabled (Disabled)	When a purchase invoice is saved, the purchase price on each product’s page is updated with the unit price in the invoice (converted to the default currency). If the product has a profit margin in advanced pricing, the selling price is also recalculated. The price isn’t updated if it is zero or unchanged, and the change is recorded in the activity log.
Purchase Adjustment	Enabled / Disabled (Disabled)	Adds the “Adjustment” field to the purchase invoice and quotation to add or subtract an amount from the total with a custom label. It can be linked to an accounting account when the purchase adjustment account routing is set manually.

Example: updating purchase prices

A product’s purchase price is 50. A purchase invoice was issued at a price of 55: the purchase price on the product page becomes 55. And if its profit margin is 20%, the selling price becomes 66.

3. Payment and Debts

Setting	Options (Default)	What It Does
Make Invoices Already Paid by Default	Enabled / Disabled (Enabled)	The “Already paid to the supplier” option is selected automatically in every new purchase invoice, so a payment is recorded with the chosen payment method and treasury. You can cancel it in the invoice itself. Manage the payment methods from Manage Payment Methods.
Credit Note	Enabled / Disabled (Disabled)	Allows issuing a credit note from the purchase invoice to reduce the debt or correct an invoice with a higher value. When disabled, the option doesn’t appear. When enabled, the next credit note serial number appears (the default prefix is PCN).
Pay Invoice Automatically When the Supplier Has a Balance	Enabled / Disabled (Enabled)	Enabled: if you have a balance with the supplier (such as a purchase return), it is used automatically to pay their unpaid invoices from oldest to newest. Disabled: the balance stays, and you choose it manually as a payment method or from the balance distribution page.

4. Stock Availability and Validity Restrictions

Setting	Options (Default)	What It Does
Stock Requisitions for Purchase Invoices	Yes / No (same value as the requisitions for sales invoices)	Yes: every purchase invoice or purchase return creates a stock requisition that is under delivery, and the stock doesn’t change until it is approved. No: the stock changes directly when the received invoice is saved.
Make Purchase Invoices Already Received by Default	Enabled / Disabled (Enabled)	The “Received” option is selected automatically in the new purchase invoice, so the quantities enter stock immediately (or when the requisition is approved if requisitions are enabled).
Prevent Purchasing and Issuing Invoices for Specific Product and Service Categories	Multi-select for categories (None)	Products in the chosen categories do not appear when searching for products in the purchase screens.

5. Accounting Entries

Setting	Options (Default)	What It Does
Custom Description for Journal Entries	Enabled / Disabled (Disabled)	By default the purchase invoice entry’s description is “Purchase Invoice #number.” Enable it to write a custom description template.
Custom Description Template for Journal Entries	Text	The description text with variables from the variables guide, such as: Purchase invoice from {%supplier_business_name%} dated {%date%}.

6. Default Tax

Setting	Options (Default)	What It Does
Default Tax 1	Same as the product’s tax (default) / No tax / A specific tax	Determines the tax that appears automatically in each new line in the purchase invoice, return, and notes: the purchase tax set on the product, no tax, or one tax for all lines. You can change it manually in any line.
Default Tax 2	The same options	The same behavior for the second tax. Appears when you have two or more taxes.

If you choose a specific tax, you must select the tax, otherwise the message “Please select the tax to be applied” appears. And if the selected tax is deleted or deactivated later, the setting goes back to “Same as the product’s tax” with an alert. Add the taxes from Taxes.

Purchase Cycle

Open Purchase Cycle. The page lets you enable custom statuses for each document in the purchase cycle, then create them from Manage Custom Statuses next to each setting:

Setting	Options (Default)	What It Does
Purchase Request Statuses	Enabled / Disabled (Disabled)	Statuses such as “Awaiting Finance Manager Approval” or “Under Negotiation,” which appear in the purchase request and are used in filtering and reports.
Quotation Request Statuses	Enabled / Disabled (Disabled)	Statuses such as “Awaiting Supplier’s Response.”
Purchase Quotation Statuses	Enabled / Disabled (Disabled)	Statuses such as “Awaiting Management Approval.”
Purchase Order Statuses	Enabled / Disabled (Disabled)	Statuses such as “Partially Received” or “Postponed.”

Related Settings on Other Pages

• Auto numbering: the prefixes and numbers of the purchase invoice (PI), its payments (PPAY), the credit note (PCN), the debit note (PDN), the supplier (SUP), the purchase request (PR), the quotation request (QR), the purchase quotation (PQ), and the purchase order (PO).
• Account routing: the purchases, purchase returns, and purchase adjustment accounts are set from the general accounting settings.
• Sharing suppliers between branches: from the branch settings.
• Purchase returns and the debit note are always available, with no enabling setting.

Frequently Asked Questions

• Why is the purchase invoice recorded as paid automatically? Because the “Make Invoices Already Paid by Default” setting is enabled (the default). Turn it off, or clear the selection in the invoice.
• Why didn’t the stock enter after the purchase invoice? Either the invoice isn’t received, or the stock requisitions for purchase invoices are enabled and the requisition is under delivery.
• Why did the purchase price change on the product page? Because “Automatically Update Product Prices” is enabled.
• Why doesn’t the credit note option appear in the purchase invoice? Because it isn’t enabled in the Payment and Debts section.
• Why was a purchase invoice paid from the supplier’s balance without my asking? Because “Pay Invoice Automatically When the Supplier Has a Balance” is enabled.
• A product doesn’t appear when searching in the purchase invoice. Why? Its category may be among the categories barred from purchase.
• Why doesn’t the per-line discount column appear? Because the discount application method is set to the invoice total only.