Recording Purchases

This guide explains how to record purchase transactions in C-Tax. Purchases are transactions where your business buys goods or services from suppliers.

Note: Only users with Owner, Admin, or Accountant roles can create purchases.

Why Record Purchases?

Recording purchases in C-Tax helps you:

• Track business expenses
• Maintain accurate inventory records
• Claim input VAT on eligible purchases
• Meet KRA compliance requirements
• Generate accurate financial reports

Before You Start

Make sure you have:

• Selected the correct branch
• The supplier’s invoice with all details
• The supplier’s TIN (Tax Identification Number)
• Items already set up in your system

Creating a New Purchase

Step 1: Start a New Purchase

Option A: From the Dashboard

• Click “New Purchase” button (if visible)

Option B: From the Menu

• Click Purchases in the sidebar
• Click “Create” or ”+ New Purchase”

Step 2: Enter Transaction Details

You’ll see a form with several sections to fill in.

Transaction Details Card

Supplier Information Card

Tip: Enter the Supplier TIN accurately for proper KRA validation and VAT claim purposes.

Step 3: Add Purchased Items

Each item appears as a numbered card. For each item on the supplier’s invoice:

The System Automatically Calculates:

• Supply Amount = Quantity × Unit Price
• Discount Amount = Supply Amount × Discount Rate %
• Taxable Amount = Supply Amount - Discount Amount
• Tax Amount = Taxable Amount × Tax Rate %
• Total Amount = Taxable Amount + Tax Amount

Each item card shows these calculated amounts at the bottom.

Adding More Items

Click the “Add Item” button in the Items card header to add another item card.

Removing an Item

Click the trash icon in the top-right corner of the item card. You cannot remove the last remaining item.

Step 4: Review the Summary

On the right side of the screen, the Summary card shows:

Compare these with the supplier invoice:

If totals don’t match, check:

• Quantities are correct
• Unit prices match the invoice
• Tax types are correct
• No items are missing

Important Notes card reminds you:

• All fields marked with * are required
• Transaction will be sent to VSCU for processing
• Receipt number will be generated upon success
• Failed transactions can be retried up to 3 times
• Ensure supplier TIN is accurate for proper validation

Step 5: Submit the Purchase

1. Review all information one more time
2. Click the “Submit Transaction” button
3. The button will show “Processing…” while submitting
4. Wait for the confirmation message
5. Note the receipt number for your records

Note: The Submit button will be disabled if:

• No branch is selected
• No items are added
• Invoice number is empty
• Supplier name or TIN is empty
• Any item is missing required fields (Item Class Code, Item Name)

Purchase Types

Normal Purchase

Standard purchase from a local supplier. Most common type.

Import Purchase

Goods purchased from outside Kenya. May have different tax treatment.

Service Purchase

Purchasing services rather than physical goods.

Cash Purchase

Small purchases paid immediately in cash.

Matching Supplier Invoices

For accurate record-keeping:

Common Purchase Scenarios

Purchasing Inventory for Resale

1. Create the purchase transaction
2. Record as Stock In in stock management
3. Items become available for sale

Purchasing Office Supplies

1. Create purchase transaction
2. Use appropriate expense item code
3. Tax is recorded for VAT purposes

Purchasing from Unregistered Supplier

If supplier doesn’t have a TIN:

• Enter “N/A” or zeros for TIN
• Record all other details accurately
• Note: VAT may not be claimable

Partial Delivery

If you receive goods in multiple deliveries:

Option 1: Record when fully delivered

• Wait until all items arrive
• Record single purchase

Option 2: Record each delivery

• Create separate purchase for each delivery
• Reference the same supplier invoice

After Recording a Purchase

Link to Stock (if applicable)

If you purchased inventory:

1. Go to Stock in the sidebar
2. Create a Stock In transaction
3. Reference the purchase

Keep Documentation

Store these together:

• Supplier’s original invoice
• Delivery note (if any)
• Your purchase record reference
• Payment receipt

Viewing Past Purchases

1. Go to Purchases in the sidebar
2. See a list of all purchases
3. Use filters:
   • By date range
   • By supplier name
   • By invoice number
   • By status

Purchase Status

If a Purchase Fails

1. Note the error message
2. Common issues:
   • Invalid supplier TIN
   • Missing required fields
   • Calculation errors
3. Edit and retry or contact support

Best Practices

Daily Practices

• Record purchases on the same day you receive goods
• Keep all supplier invoices organized
• Verify TINs before recording

Monthly Practices

• Reconcile purchases with bank statements
• Verify all purchases match supplier statements
• Check for any missing entries

Accuracy Tips

• Double-check supplier TINs
• Verify amounts match invoices exactly
• Use consistent item codes
• Add notes for unusual purchases

What You Cannot Do

• Edit a purchase after it’s submitted to KRA
• Delete a completed purchase
• Change the supplier after submission

If you made an error on a completed purchase, consult your accountant or administrator for the correct procedure.

Next: Learn about Stock Management to track inventory