How to turn on additional expenses for purchase

Additional Expenses for Purchase is a feature that allows users to add extra costs, such as freight, transportation, loading, handling, or other purchase-related expenses, to a Purchase Order. These expenses can be configured in the system, applied during the purchase process, and included in the overall purchase cost. This tutorial explains how to enable the feature, configure additional expenses, create a Purchase Order with additional expenses, process the purchase, generate the Supplier Invoice, make the payment, and verify the financial transactions.

STEP 1 : Enable and Configure Additional Expenses 

• Navigate to Purchase Settings.
• Enable the Enable Additional Expenses option to activate the feature.
• Click Specify Additional Expenses to configure the additional expense types available for purchases.

• Click New to create a new Additional Expense.

• Enter all the required details, such as the expense name and other applicable information.
• If the expense is mandatory while creating a Supplier Invoice, enable the Is Mandatory for Supplier Invoice checkbox.
• If required, specify the Supplier Additional Amount for the expense.
• Click Save to create the additional expense.

Note:  Multiple additional expenses can be configured based on the business requirements. These expenses will be available for selection while creating a Purchase Order. 

Result:

• The Additional Expense is configured successfully and is available for use during the Purchase process.

STEP 2:  Create a Purchase Order with Additional Expenses 

• Navigate to the Purchase Order screen.
• Click New to create a new Purchase Order.
• Enter all the required Purchase Order details, such as the supplier, warehouse, and other necessary information.
• Add the required items to the Purchase Order.
• Click Specify Additional Expenses to add the configured additional expenses.

• Enter the required amount for each additional expense.
• Add remarks or notes if required.
• Verify that the Total Expense amount is correct.
• Click OK to apply the additional expenses to the Purchase Order.

• Review the Purchase Order details, including the applied additional expenses.
• Click Save to create the Purchase Order.

Note: The specified additional expenses are linked to the Purchase Order and will be considered during the purchase process. 

Result:

• The Purchase Order is created successfully with the configured additional expenses applied.

STEP 3: Receive Goods and Create the Purchase 

• Open the Purchase Order that was created with the additional expenses.
• Receive the goods for the selected Purchase Order.
• After receiving the goods, create the Purchase from the Purchase Order.

Note: If the Create Purchase option is not available in the Purchase Order screen, first complete the Receive Goods process. Then navigate to the Purchase screen, select the corresponding Purchase Order, and create the Purchase from there. 

• Verify all the Purchase details before proceeding.
• Click Specify Additional Expenses to review or update the configured additional expenses, if required.
• Ensure that all the additional expense amounts are entered correctly.
• Click OK to apply the additional expenses.

• Enable the Apply to Grand Total option.
• Verify that the additional expense amount is added to the Grand Total.
• Review all the Purchase details and click Create Purchase to complete the Purchase.

Note: When Apply to Grand Total is enabled, the configured additional expenses are included in the overall Purchase amount and reflected in the final Grand Total. 

Result:

• The Purchase is created successfully, and the additional expenses are applied to the Purchase and included in the Grand Total.

Make Payment for the Purchase (After Purchase is Created) 

• Navigate to the Purchase screen.
• Select the required Purchase document.
• Click the Context Menu (Three Dots) of the selected Purchase.
• Select Make Payment.

• Select the Purchase document for which the payment needs to be made.
• Choose the required Payment Mode.
• Review all the payment details, including the payable amount.
• Click Create to complete the payment.

Note: This option is used when making a payment directly for the Purchase without creating a Supplier Invoice.

Result:

• The payment is created successfully and is recorded against the selected Purchase document.

STEP 4 : Create a Supplier Invoice

• Navigate to the Supplier Invoice screen.
• Click New to create a new Supplier Invoice.
• Select the required Supplier.
• Select the corresponding Purchase document.
• Verify that all the purchased items are displayed correctly.

• Review the item details and verify the pending amount.
• Confirm that all the required information is correct.
• Click Create to generate the Supplier Invoice.

• The Supplier Invoice is created successfully and will be available in the Supplier Invoice screen. 

Make Payment for the Supplier Invoice

• Navigate to the Make Payment screen.
• Select Make Payment to Supplier Invoice.

• Choose the required Supplier.
• Select the Supplier Invoice document for payment.
• Choose the preferred Payment Mode.
• Review all the payment details before proceeding.
• Click Create to complete the payment.

Note:

• The Supplier Invoice includes only the purchased items.
• Additional Expenses are not included in the Supplier Invoice total.
• Additional Expenses are considered separately during the overall Purchase payment process.

Result:

• The Supplier Invoice is created successfully, and the payment is recorded against the selected Supplier Invoice.

Make Payment to the Supplier

• Navigate to the Make Payment screen.
• Select Make Payment to Supplier.
• Choose the required Supplier.
• Select the corresponding Purchase document.
• Select the preferred Payment Mode.
• Review the payment details, including the payable amount.
• Click Create to complete the payment to the supplier.

Note:

• While making the payment to the supplier, the Additional Expenses are included in the Grand Total amount.
• The Supplier Invoice contains only the purchased items, whereas the payment to the supplier includes both the item amount and the configured Additional Expenses.
• Verify the payment details before creating the payment.

Result:

• The payment is created successfully, and the supplier payment is recorded with the Additional Expenses included in the total amount.

STEP 5 : Verify the Financial Transactions 

• Navigate to the Make Payment screen.
• Select the required payment document.
• Click the Context Menu (Three Dots) of the selected payment.
• Select View Financial Transaction to view the transaction details.

• Review the Financial Transaction details related to the selected payment.
• Verify that all the transaction information is displayed correctly.

• Navigate to Finance Books.
• Open the Financial Transactions (FA) screen.
• Search for the corresponding transaction using the required reference.
• Verify the complete transaction history and ensure all financial entries are recorded correctly.

Note:

• The Financial Transactions (FA) screen displays the complete financial history of the purchase, including payment details and related accounting entries.
• Verify the transaction details to ensure that all purchase and payment records have been posted successfully.

Result:

• The financial transactions are verified successfully, and the complete transaction history is available in the Financial Transactions (FA) screen.