Purchase requisitions
Staff ask for what they need, a manager approves, and the request turns into a PO.
Purchases & landed cost
Purchase orders and landed cost that show what stock really cost
Raise a purchase order, receive it into the godown in one go or in parts, and add the freight, unloading or insurance to what you bought. The extra cost is spread by value or by quantity and added to each item's cost, so the margin on every sale uses the real figure.
For traders in cement, steel, grain, electricals, paper and anything else that arrives by the truckload.
- Requisition, PO and goods received
- Freight split by value or quantity
- Margin on the landed cost
Purchase order · PO-214
OPC cement · 50 kg400 bags
Agreed rate₹340 / bag
Order value₹1,36,000
Goods received
Received against PO-214400 bags
Freight and unloading₹12,000
Landed cost₹370 / bag
Invoice · Gupta Builders
300 bags × ₹405₹1,21,500
Credit · 30 daysWithin limit
- Order
- Receive
- Sell
- Margin
Goods received
Freight in the cost, not in a separate file
Add freight, unloading or duty to a receipt and it is spread over the goods by value or quantity. The product's cost price goes up by its share, so every margin carries it.
invoice.othtech.com/procurement/PO-214
GRN-0611 · against PO-214
Raj Cement Agencies · OPC cement 50 kg
- 400 bags × ₹340₹1,36,000
- Freight · ₹24 a bag₹9,600
- Unloading · ₹6 a bag₹2,400
Unit cost, spread by quantity₹340
Selling at ₹405 leaves ₹35 a bag, 8.6% after freight.
Adding charges…
PO-214 · Raj Cement Agencies
OPC cement 50 kg
- Ordered
- 400 bags
- Agreed rate
- ₹340 / bag
- Order value
- ₹1,36,000
- Received
- 400 bags
Received in full · GRN-0611
Invoice · Gupta Builders
300 bags at ₹405
- Sale value
- ₹1,21,500
- Cost at ₹370 landed
- ₹1,11,000
- Margin
- ₹10,500
8.6% after freight · 100 bags left
Illustration · sample names and numbers
From requisition to goods received
Every purchase starts from an order, so what arrives can be checked against what was agreed.
Purchase orders
Agreed rates, tax and TDS section on the PO, approved before goods are received, with a PDF to send the supplier.
Goods received
Receive all of it or part of it into a godown. Stock comes in at the PO rate.
Three-way match
Ordered, received and billed on one screen. Bills are marked matched or under-received.
Blanket POs
A standing order for a quantity over a period, released as regular POs, by hand or every week or month.
Auto-reorder
When stock falls to the reorder point, a draft PO is raised for the product's preferred supplier.
Landed cost
Add the freight, and the margin tells the truth
PO-214 brings in 400 bags of OPC cement at ₹340. The truck and unloading cost ₹12,000. Split by quantity, each bag takes ₹30, and its cost price goes from ₹340 to ₹370.
Sell 300 bags at ₹405 and the margin is ₹10,500. Worked off the supplier's rate, the same sale would have shown ₹19,500, which is ₹9,000 the business never made.
When one truck carries goods of very different prices, split by value instead. ₹10,000 of freight on a load of ₹1,50,000 of cement and ₹50,000 of TMT bars goes ₹7,500 and ₹2,500.
- Split by value or by quantity
- Per-unit share added to the item's cost price
- Rounding left on the last line, so the total matches
- Every allocation kept on record
Landed cost · PO-214
OPC cement 50 kg · split by quantity
- Bought · 400 bags × ₹340
- ₹1,36,000.00
- Freight and unloading
- ₹12,000.00
- Share per bag · ₹12,000 ÷ 400
- ₹30.00
- Landed cost per bag
- ₹370.00
- Sold · 300 bags × ₹405
- ₹1,21,500.00
- Cost · 300 bags × ₹370
- ₹1,11,000.00
Margin on this sale₹10,500.00
Illustration · sample numbers
Bills and GST
Supplier bills that line up with GSTR-2B
Once the goods are in, the bill, the return and the input tax credit follow from the same purchase.
Bill from the PO
Raise the bill from the PO with the supplier's own invoice number and date, and TDS withheld if a section applies.
Debit notes
Short supply, rate difference or goods sent back: a debit note reverses that part of the bill in the books.
GSTR-2B reconciliation
Upload the 2A or 2B file and see bills matched, mismatched, missing in your books or missing on the portal.
Reverse charge and blocked credit
Mark a bill as reverse charge, or its input credit as blocked, and GSTR-3B treats it that way.
Payables ageing
What you owe suppliers in 0–30, 31–60, 61–90 and 90+ day buckets.
Posted to the books
An approved bill is posted to purchases, input GST and payables, with any TDS kept apart.
Start costing purchases properly
- 01
Choose Trading at signup
The workspace opens with purchases, godown stock, credit sales and GST registers, without a counter screen.
- 02
Add suppliers and products
Set each product's cost price, reorder point and preferred supplier.
- 03
Order and receive
Raise the PO, approve it, and receive the goods into the godown when the truck arrives.
- 04
Add the landed cost
Enter the freight or unloading bill, pick by value or quantity, and the item costs go up by their share.
Landed cost raises the item's cost price, which sales from then on use for margin. Invoices raised before it keep the cost they had, and the stock valuation report still values the receipt at the PO rate. The three-way match marks a bill but does not stop it being paid. A debit note does not take stock back out; record that as a stock movement.
Questions
Questions about purchases and landed cost
Something not covered here? Call or WhatsApp us and you'll speak to the people who build the product.
It is what an item really cost you to get into the godown: the supplier's rate plus freight, unloading, insurance or duty. If you price and measure margin on the supplier's rate alone, every sale looks better than it is.
Pick by value or by quantity. By value, each line takes a share in proportion to what it cost, which suits a truck carrying cheap and costly goods together. By quantity, every unit takes the same share, which suits bags or cartons of one kind. The last line takes any paise left over from rounding.
Yes. The landed share is added to the item's cost price, and every invoice line keeps the cost at the time of sale. The order profitability report shows revenue, cost and margin for each invoice from those figures.
Yes. Receive the full order in one go, or enter the quantity that has arrived on each line. The PO stays open until every line is in, and stock goes into the godown you choose at the PO rate.
The PO shows ordered, received and billed quantities side by side. A bill raised from the PO is marked matched when everything has arrived, or under-received when some lines are short, so the shortfall is in front of whoever approves the payment.
Yes. Set a reorder point on a product and link a preferred supplier. When stock falls to that level, a draft PO is raised for that supplier and you get an alert to check and approve it.
See what your last truckload really cost
Start a 14-day free trial, raise a purchase order, receive it and add the freight. No card needed.
- 14 days free
- PO to goods received
- Landed cost on every item