Direct Cash Purchase of an Asset

1. Record the Purchase Invoice

1. Go to Purchase Module → Purchase Invoice → Create New.

2. Select the supplier (e.g., Jarir).

3. Since there is no PO, leave the PO field empty.

4. Enter the supplier invoice number and purchase date.

5. Remove due date (cash purchase).

6. Add a memo/description (optional): e.g., “Cash purchase of laptops.”

7. Click Add Items and select the asset(s) purchased:

   • Example: 2 Lenovo laptops @ 2,750 each.

   • Enter description, quantity, and unit price.

8. Important:

   • Select Add Stock = Yes (so the system automatically records item received).

   • Select the location (e.g., store).

9. Click Add.

System automatically:

• Creates a purchase invoice against Jarir (recording a payable).

• Creates an item received entry for the purchased asset(s).

• Assigns unique asset codes automatically.

2. Update Asset Details (Optional)

• Go to Asset Master → Edit:

  • Update serial numbers, asset owner, or other info.

  • You can also change the asset location or employee tag.

3. Record Payment for the Cash Purchase

Even though this is a cash purchase, the invoice will initially show as unpaid. To clear it:

1. Go to Expense Module → Vendor Payments → Create New.

2. Select the supplier (Jarir).

3. Payment From:

   • If payment was given in advance to employee to purcahse : Use the clearing account where the cash was given to the employee (e.g., Petty Cash / Working Fund Account 11701).

   • If payment is being paid to employee: Select Bank or Petty Cash Ledger

4. Enter payment details:

   • Amount (full invoice amount).

   • Memo (e.g., “Payment from Doris Petty Cash”).

5. Click Add.

System automatically:

• Clears the payment against the invoice.

• Reduces the balance from the clearing/petty cash account / Bank.

✅ Key Points

• Always select Add Stock = Yes for cash purchases.

  • Otherwise, you will need to manually record item received.

• The asset master will automatically reflect the received assets with unique codes.

• Payment should always be recorded from the clearing/petty cash account, not directly from the bank, if cash was pre-issued to an employee.