Cash Purchase
A Cash Purchase provides a fast-track way to record direct material purchases made with cash or petty cash, bypassing the formal Purchase Order process. This is designed for small, urgent needs where creating a full PO would be impractical — such as buying nails, binding wire, or consumables from a local supplier for immediate site use.
A cash purchase combines procurement and receipt into a single transaction. Unlike standard procurement (where you create a PO, then an MRN upon delivery), a cash purchase creates stock lots directly upon approval. The expense is recorded against the job and a finance voucher is generated for the vendor payment.
Cash Purchase vs. Standard PO
| Aspect | Standard PO → MRN | Cash Purchase |
|---|---|---|
| Process Steps | PR → RFQ → PO → Delivery → MRN | Single form: purchase + receipt together |
| Vendor Selection | Competitive bidding via RFQ, rate contract check | Direct selection, no bidding |
| Approval | Multi-level approval on PO + MRN | Single approval on the cash purchase |
| Payment | Invoice matching, scheduled payment | Cash / petty cash, immediate payment |
| Best For | Planned, high-value procurement | Small, urgent, low-value purchases |
Cash Purchase List View
Toolbar Actions
| Button | Action |
|---|---|
| Add MRN+ | Creates a standard MRN against a PO (redirects to the MRN workflow). |
| Add Cash Purchase | Create a new cash purchase entry. |
Step-by-Step: Recording a Cash Purchase
Step 1: Click "Add Cash Purchase"
Navigate to Logistics → Cash Purchase and click Add Cash Purchase.
Step 2: Fill in the Purchase Header
| Field | Required | Description |
|---|---|---|
| Cash Purchase Code | Auto | System-generated reference code. |
| Purchase Date | Yes | Date the purchase was made. Defaults to today. |
| Vendor / Supplier | Yes | The vendor who sold the materials. Select from the vendor directory or add a new ad-hoc vendor. |
| Job | Yes | The job to charge the purchase cost against. |
| Warehouse | Yes | The warehouse where materials will be stocked. |
| Invoice / Receipt Number | Yes | The vendor's invoice or cash memo number. Essential for reconciliation. |
| Remarks | No | Additional notes about the urgency or circumstances. |
Step 3: Add Material Line Items
Add each material purchased with:
- Material — Select from the material master (or add a new material if not yet in the system).
- UOM — Unit of measure.
- Quantity — Quantity purchased.
- Unit Rate — Price per unit.
- Amount — Auto-calculated (Qty × Rate).
The total purchase amount is calculated from all line items.
Step 4: Attach the Receipt
Upload a scanned copy or photo of the vendor's cash bill or invoice. This provides the supporting document for the payment and audit trail.
Step 5: Save and Submit for Approval
Save the cash purchase (Draft status), then submit for approval. Upon approval:
- Stock lots are created in the destination warehouse for each line item.
- Stock transactions are posted (positive entries), increasing the stock-on-hand.
- A finance voucher is generated recording the expense against the job and the payment to the vendor.