How to Create Purchase Record?
Quick Summary
A Purchase Record is the accounting entry created when goods are actually received from a supplier. It formally records the inward movement of stock, updates inventory quantities, and tracks the payment owed to the supplier. It can be created either by converting a completed Purchase Order or directly as a standalone entry.
What Is This Feature
What It Is
A Purchase Record is the accounting entry created when goods are actually received from a supplier. It formally records the inward movement of stock, updates inventory quantities, and tracks the payment owed to the supplier. It can be created either by converting a completed Purchase Order or directly as a standalone entry.
When To Use This Feature
When & Who
Used by any business that buys physical goods from suppliers — shops, wholesalers, distributors, manufacturers. A purchase record is created at the moment goods arrive, regardless of whether a PO was raised beforehand.
Step-by-Step Flow
🔁 Flow
- From the dashboard, swipe right to left to find the Purchase section.
- Tap Add New Purchase Record Set the purchase date. Optionally add a due date.
- Tap Supplier Name → select an existing supplier or create a new one inline.
- Tap Add Items → select products/services or add new ones on the spot.
- Apply discount, tax, and shipping charges if applicable.
- In the Payment section, record any advance or instant payment Paid.
- Optionally customize the purchase record (header, footer, signature, image, notes, custom fields).
- Tap Preview → then Save, Send, Print, or Change Template.
Fields Explanation
Key Fields
| Field | What It Means |
|---|---|
| Opening Stock | The quantity already in possession when the product was first set up in the app. Should only be entered once — during initial product creation. Never enter it again in a purchase record for an existing product, as it will double-count inventory. |
| Minimum Alert Level | The reorder threshold for this product. The app notifies when stock drops below this quantity. |
Purchase Record Statuses
| Status | Meaning |
|---|---|
| Unpaid | Supplier has not yet been paid for this purchase. |
| Partially Paid | Some payment has been made; a remaining balance is outstanding. |
| Paid | Supplier has been fully paid. |
Optional Settings
Important Rule: Opening Stock
If a product's opening stock was already entered during product creation, do not enter it again in a purchase record. The app will count it twice, resulting in an inflated inventory figure. Opening stock is a one-time entry made only during the initial product setup.
Underlying Concept (Accounting / Logic / Calculation)
Concepts
Purchase Record: A document that confirms goods ordered from a supplier have been physically received and inspected. A purchase record in SIM serves this function — it is the internal proof that stock came in.
Buy Rate vs. Sale Rate: The buy rate is what the business paid the supplier per unit. The sale rate is what the business charges its customers. The difference between the two is the gross profit per unit. Example: Buy at ₹100, sell at ₹150 → gross profit = ₹50 per unit (33% margin).
Discount types: Amount-based discount: A fixed rupee/dollar value subtracted (e.g., ₹100 off). - Percentage discount: A proportion of the item or total price subtracted (e.g., 5% off).
Note-
Reports - You can check purchase/ payment report, detailed purchase report, Purchase order report.
Alternate Terms
Alternate Terms
| App Term | Also Known As |
|---|---|
| Purchase Record | Purchase Entry, Purchase Invoice, Goods Receipt, GRN, Inward Entry |
| Supplier | Vendor, Seller, Distributor, Creditor |
| Buy Rate | Cost Price, Purchase Price, Landed Cost |
| Unpaid | Outstanding, Due, Payable |