Purchase Receipt

November 26, 2025

Overview

A Purchase Receipt (PR) in DIGITZ ERP is the document used to record the physical receipt of goods from a supplier.
It is created after a Purchase Order has been issued and the supplier delivers all or part of the ordered items.

The Purchase Receipt updates stock quantities, affects item valuation, and establishes the basis for supplier invoicing.
It ensures that actual received quantities are captured accurately and that stock entries reflect real-time inventory levels.

Purchase Receipt is one of the most critical steps in the buying workflow because it marks the point where ordered goods enter the organisation’s inventory.

Purpose

The Purchase Receipt ensures that:

All goods received from suppliers are recorded systematically.
Inventory updates reflect the exact quantity received.
Differences between ordered and received quantities are tracked.
Purchase Invoice can only be created for items actually received (unless invoicing directly from PO).
The organisation maintains transparency and accuracy in stock and valuation.

This prevents stock mismatches, reduces operational errors, and ensures precise inventory and financial reporting.

How It Works

When goods arrive, the procurement or stores team checks the delivery.
A Purchase Receipt is created against the Purchase Order.
The system fetches item details automatically from the PO.
The user enters the actual received quantities (full or partial).
Upon submission:
- Stock Ledger is updated
- Valuation rate is recalculated (for inventory items)
- Pending quantity in the Purchase Order gets adjusted
This Purchase Receipt then becomes the base document for the Purchase Invoice.

Purchase Receipt ensures that stock enters the system only after physical verification.

Key Features

Direct link to Purchase Order for pulling item details.
Updates stock immediately upon submission.
Supports partial receipt, multiple receipts, and batch/serial tracking.
Records actual received quantity separate from ordered quantity.
Handles rejected/damaged quantities (if applicable).
Sets the foundation for Purchase Invoice creation.
Maintains valuation accuracy for inventory items.
Tracks discrepancies between ordered and received quantities.
Provides clear receipt status and pending quantity details.

Partial Receipt Handling

DIGITZ ERP fully supports receiving goods in multiple batches.

Key Behaviour

A Purchase Receipt may contain only part of the items ordered.
The system updates the Purchase Order’s:
- Received quantity
- Pending quantity
- Status (e.g., Partially Received)
Multiple Purchase Receipts can be created until the PO is fully received.
Each PR remains fully linked to the original Purchase Order.

This allows flexible receiving schedules based on supplier deliveries.

Valuation Impact

When a Purchase Receipt is submitted:

Stock Ledger entry (SLE) is created.
Valuation rate is updated based on:
- Item rate
- Additional charges (if part of PO or added later)
- Weighted average impact
If the item uses batch or serial numbers, valuation is maintained at each lot level.

This ensures that the cost of goods reflects actual landed cost as accurately as possible.

Link with Purchase Invoice

A Purchase Invoice is typically created from the Purchase Receipt, ensuring:

The invoice quantity cannot exceed received quantity.
Financial postings align perfectly with stock-received values.
No invoice is created for items not yet received (unless the company allows direct PO-based invoicing).

This guarantees consistency between stock and financial flows.

Relevant Reports

The following reports provide clarity on receipts:

Purchase Receipt Register

Shows all Purchase Receipts with supplier, dates, and values.

Purchase Receipt Itemwise Register

Displays item-level receipt details including quantity and rate.

Purchase Receipt Itemwise Summary

Summarises received item quantities across a period — helpful for stock analysis.

Pending Purchase Receipts (if enabled)

Highlights items expected to be received based on PO delivery dates.

These reports help logistics and procurement teams monitor stock arrival and supplier performance.

Workflow

Navigate to Buying → Purchase Receipt → New.
Select a Purchase Order to fetch all ordered items.
Enter the actual received quantities and warehouse.
Add batch/serial numbers if required.
Save and Submit the Purchase Receipt.
Stock is updated immediately.
Create a Purchase Invoice from the Purchase Receipt (optional step).
Track pending items and discrepancies from the PO dashboard and reports.

Integration

Purchase Receipt integrates seamlessly with:

Purchase Order → Fetches item and quantity structure.
Purchase Invoice → Basis for supplier invoicing.
Stock Ledger → Updates inventory quantities and valuation.
General Ledger → Indirect impact via Purchase Invoice.
Quality Checks (future enhancement) → If QC workflow is introduced.
Additional Expense Entry → Can adjust valuation rates after receipt.

Conclusion

The Purchase Receipt in DIGITZ ERP is a central component of the buying cycle, ensuring that goods are recorded accurately at the point of entry into the organisation.
By updating stock, capturing real quantities, supporting partial deliveries, and linking smoothly to invoicing and reports, it maintains operational accuracy and full traceability of procurement activities.

It is the bridge between supplier delivery and financial accounting, ensuring inventory and valuation integrity across the system.