Purchasing (AZ)
Order, receipt and invoice check each other; the supplier's tax ID, the purchase act and the cash limit act before the document is posted.
The buying side is usually built weaker than the selling side
Companies put controls on sales early - contract, tax ID, credit limit, e-invoice. The buying side stays at "the invoice arrived, we booked it" for a long time.
It surfaces at an audit: input VAT on an invoice from a partner without a tax ID is not creditable and the cost is disallowed; goods bought from an individual without an electronic purchase act count as undocumented; and when 100 kg was ordered but 96 kg received, the invoice still comes for 100 kg and nobody catches the difference.
What these three mistakes share is that each becomes expensive AFTER the document is posted. Until then it is a matter of one check.
The rule stands in front of the document
If a resident legal entity has no tax ID, the purchase invoice is not posted. If goods are bought from an individual without a tax ID, the system requires the number of the electronic purchase act and the seller's personal identification number; and if those goods are not on the list the law allows to be paid in cash, payment from the cash desk is blocked.
The three-way match puts order, receipt and invoice side by side: the invoiced quantity cannot exceed what was received, and the price may differ from the order only by the permitted percentage. The mode is on the company card - warn or block.
A large commitment needs a second signature: above a set amount an order does not reach the supplier without the director's approval.
On import, when the customs declaration is released the import VAT is posted separately while duty, broker and freight are landed onto the receipt as cost - so the true value of the goods is visible in stock, not in an expense account.
The supplier card measures on-time delivery, the share of returns and price variation; from those an A/B/C grade follows. Quotes for the same requirement are compared in one table and the reason for the choice is written into the document.
What this module adds
In the system this module opens the following items.
Related modules
Interface
Overview screen, chart library and year-on-year comparison - one frame, the same for every module.
Finance and order book
Cash desk, advances, expense requests, budget, currency, period close and the order book - a treasurer's daily work in one section.
Azerbaijani localisation
Chart of accounts, VAT, tax ID, profit and simplified tax, withholding at source - built in, not bolted on later.
Most often asked
What if our supplier has no tax ID?
The mode is chosen on the company card: off, warn or block. In block mode the invoice is not posted - because the VAT on it is not creditable and the cost is disallowed at an audit. For an individual there is a separate route: the electronic purchase act.
Is a difference between receipt and invoice always an error?
No. That is why there is a tolerance: if the price difference is within the permitted percentage the document passes. The quantity, however, cannot exceed the receipt - that is an overpayment.
What happens to invoices that arrive without an order?
They are not blocked. The match only applies to invoice lines linked to an order line; the rest are posted as usual and shown as "no order".
See this module with your own data
The demo database is full of real documents - not a mock-up. Send a request and we will walk through your scenario.