Review the Sales, Purchase and Inventory settings

Before you start

This lesson is a tour. You only look at the switches - nothing is changed. Change a switch only when you know your team is ready for it, because it changes how everyone works.

Steps

1. Open Settings and click the Sales tab. Use quotation before sales order makes every sale start as a quotation that you confirm into a sales order. Use proforma adds an optional proforma invoice step.
2. Allow invoice before delivery lets you invoice before the goods leave. Auto-create invoice after delivery drafts the customer invoice for you as soon as a delivery is confirmed. The small ? next to a heading, such as Sales Document Numbering, gives a short hint when you point at it.
3. Open the Purchase tab. Use RFQ before purchase order makes every purchase start as a request for quotation (RFQ) that you convert into a purchase order.
4. Require GRN / receipt before vendor bill means a vendor bill can be made only after the goods are received. Allow vendor bill before receipt is the opposite: you may bill before the goods arrive.
5. Auto-create vendor bill after receipt prepares a draft vendor bill as soon as a goods receipt is done. Purchase Accounting Defaults sets the account used on bill lines when a product has none of its own.
6. Open the Inventory tab. Allow negative stock lets you deliver more than the system says you have. It is usually best to keep it off.
7. Track expiry dates turns on expiry dates for lot and batch products.
8. Default Lot Allocation Policy decides which lot is picked first when the system chooses for you: FIFO (oldest received first), FEFO (earliest expiry first) or Long expiry first.
9. Inventory valuation shows the costing method, which is Average cost (AVCO). If you do change a switch, click Save Settings at the top right.

What happens next

See how document numbers are built: Document and journal numbering.