Purchasing and Purchasing Management

Blog » Purchasing and Purchasing Management

May 16, 2024

By GenieCo, Inc.

Purchasing (Prerequisites, Purchasing and Receipt Storage)

Purchasing

equineGenie is an enterprise management system. An enterprise management system does much more than an accounting system. Accounting systems record historical financial transactions. Accounting systems provide financial statements that are often too late to help manage a business. Most financial statements are good for the tax man and your banker but are of little use for day-to-day operating management. The history they provide shows how your business has done – and with a lot of extra work they can sometimes tell how a business might do in the future. equineGenie provides the accounting and the same statements, but with the added value of using your business transactions to help measure and manage your business as each transaction is entered. equineGenie not only tells you how you have done but predicts with reasonable accuracy how you will do by analyzing interconnected business information. equineGenie helps you understand with every transaction entered what needs to be done to make your business financially successful. equineGenie cannot generate money but will help you measure and manage your business more efficiently and effectively. equineGenie uses this same philosophy when you make a purchase.

When you make a purchase equineGenie does the following:

Track, measure, manage and report the unit cost of the item purchased.
Total Cost/Quantity – When a purchased item is used by the business, equineGenie assigns the cost of the number of the item’s units used to the task, activity or horse.
Track, measure, manage and report the quantity and cost of the item purchased.
Total quantity and cost
Day to Day and Month to Month cost changes – equineGenie tracks and reports any increases or decreases in the cost of items purchased over any desired period.
Change in unit cost since last purchase – equineGenie tracks and reports any increases or decreases in the cost of items purchased since their last purchase.
Unit cost vs average unit cost
Track, measure, manage and report the item by supplier.
Cost by supplier – equineGenie tracks and reports the purchase amount on items purchased from each supplier. (This information can be used to negotiate discounts from a supplier for large quantity purchases.)
Delivery performance by supplier – equineGenie makes sure you have what you need, when you need it, but not more than you need, thus minimizing waste and spoilage while maximizing your available cash.
Track, measure and report the items contribution to total expense.
Expense against budget
Variance against budget

Before you purchase an item there are prerequisites that need to be completed. Once the prerequisites are satisfied, they do not need to be completed again, but they can be changed if necessary. After the prerequisites are completed, you can purchase any item and account for its purchase while taking advantage of all equineGenie’s management support. So, let’s get started and purchase something!

Purchasing Flow

Prerequisites (onetime setup)

Chart of Accounts – Expense Accounts, Subaccounts

Business Preferences – Measurement System (English or Metric)

Business Departments – Departments

Business Financial Accounts – Charge, Cash, Checking, Credit Card, Debit Card

Item Supplied – Item, Supplier, Safety Stock, Unit of Measure, Delivery Lead Time

Supplier Account – Account Number, Credit Limit, Payment Terms, Account Balance

Purchasing Prerequisites

To take advantage of equineGenie’s purchasing management, the items you purchased need to be associated with a supplier and any inventory requirements if you intend to maintain an inventory count of the items. Purchases should be for items used in your business, not services. Examples of services that should not be entered on the purchases screen are utility bills, insurance and credit card payments, charge account payments, etc. They should be paid using equineGenie’s Pay A Bill screen. The Enter A Bill and Pay A Bill screens are covered in their training document: 20231005180435_429181.pdf (photobiz.com)

Important: Vehicle fuel, maintenance and repair cost should be entered on the respective vehicle screens. Management of the business’s vehicles is covered in the Vehicles training document: 20231011160520_429586.pdf (photobiz.com).

Expense Accounts

Purchases are associated with expense accounts, and can also be associated with expense account subaccounts if more expense detail is desired. The identification of your expense accounts and any associated subaccounts is extremely important. They are the foundation of how you will measure and manage the expense side of your business. With equineGenie’s help, you will be able to make good business decisions based on how you measure your business’s expense. Identifying your expense accounts and defining any subaccounts associated with an expense account is covered in the Financial: Financial Setup – GL Chart of Accounts Setup training document: 20230914112044_427163.pdf (photobiz.com). Included here is the Financial Setup – General Ledger / Chart of Accounts screen for reference and the required perquisite entries

1. Select, 5000 - 9999 – Expenses from the Select An Account Category dropdown to initiate the selection of the required expense accounts.

2. Select the expense accounts your business needs from the Select An Account check box dropdown.

Note 1: Multiple expense accounts can be identified in the Select An Account dropdown by checking the box beside each desired account. To deselect a previously selected account, uncheck the account.

3. Enter the subaccounts associated with your selected expense accounts that you think you need to track with more detail.

Note 2: A subaccount is optional and not required, but will enable you to track the different types of expenses within an expense account. For example; if you purchase several types of grain, using subaccounts you can track, measure and manage the different types of grain purchased. equineGenie provides for 999 subaccounts to be associated with each account.

Important: the suggested subaccount format for each subaccount added to a primary account is; primary account #.001, primary account #.002, primary account #.003, etc. For example: If you use several types of grain and you want to track, measure and report how much each type of grain contributes to your total grain expense, you can set up a subaccount for each type of grain. The setup process flow is illustrated below.

Account and Subaccount Setup Example

Business Preferences

The business’s measurement system must be identified before any supplied item is setup, or any purchase transaction is made requiring a unit of measure.

1. The business’s measurement system is identified by selecting either the Set English Measurement System button or the Set Metric Measurement System button.

Note 1: Selection of the English System will set equineGenie’s measurement units to the English Measurement System, e.g.; pound, mile, ounce, etc. Selection of the Metric System will set equineGenie’s measurement units to the Metric Measurement System, e.g.; kilogram, kilometer, gram, etc.

2. The business’s currency is identified by selecting the currency symbol for the country in which the business is located.

Note 2: The currency symbol can be changed real-time for financial transactions in another currency and then changed back to the business’s location currency.

3. The business’s asset capitalization minimum is entered in the ‘Asset Capitalization Minimum’ value box.

Note 3: The asset capitalization minimum value flags equineGenie when a purchase is equal to or greater than the asset capitalization minimum value entered. If the purchase is equal to or greater than the value and identified as being used longer than one year, the purchase is flagged as an asset that needs to be capitalized and depreciated. Asset purchases and depreciation are explained in another tutorial available in the ‘Genie Academy’: 20190324211837_277656.pdf (photobiz.com).

Business Departments

A business can have multiple departments or projects within equineGenie that can be measured and managed. equineGenie will track, measure, manage and report income and expenses by department or expenses by project. Identifying departments or projects is optional. equineGenie will help manage your business in total and by department or project if any departments or projects are identified. The department income statements, or project expense statement do not include non-operating expenses such as depreciation, interest expense or taxes.

1. Seven departments are available for easy selection. A department is selected by selecting the button beside the name of the department that you want to measure and manage.

2. If you need to include a department or project that is not available for selection inj you can add your own department or project. To add a department or project you select [New Department or Project] from the New Department or Project dropdown and enter the new department or project by clicking in the dropdown and entering the departments or project’s name.

3. The purpose for a new department or project can be added by clicking in the New Department or Project Purpose dropdown and entering the purpose. The purpose is optional when you add a new department, but a good reminder of why you added the department or project.

Note 1: When you enter income or an expense in equineGenie you can account for it in total and in total by department or split the income or expense between departments. The department selection is on the Deposit Method popup, the Payment Method popup and the Enter A Bill screens.

Business Financial Accounts

A purchase cannot be made until at least one business account for payment has been setup. equineGenie allows for five types of business accounts for payments. Each account type can have multiple accounts from the same or different financial institutions. The business account types used for payments are:

Vendor Charge Account
Cash Account
Checking Account
Debit Card Account tied to a Checking Account or Savings Account
Credit Card Accounts

Setting up the Cash, Checking, Credit Card and Debit Card accounts is discussed in the ‘Genie Academy’ Training, Business Accounts - Checking, Savings, Cash and Credit Cards document: 20231002002649_428803.pdf (photobiz.com). Debit Card setup is included in the Checking Account setup. The Vendor Charge is discussed in this document: Vendor / Supplier Account Setup in this document.

Item Supplies Setup

Before an item is purchased you need to identify the item’s supplier or suppliers. This is a onetime requirement that will save you considerable time each time you make a purchase. It enables equineGenie to measure and manage the items purchased and the supplier or suppliers from whom they are purchased. If an item is critical to the operation of your business, it is highly recommended that the item have a second source. Remember, services, charge account and credit card, and insurance payments, etc., are not items you purchase. They are invoices and bills you pay. Setting up an item and its supplier is very easy. In this example we are going to setup Elk Mountain Grass Hay for future purchase.

Important: The purchases screen will allow you to purchase an item without previously setting it up on the Item Supplied Setup screen. If you do purchase an item without previously identifying a supplier, you will get a warning and for good reason – you will lose valuable supplier management information which could cost you money and impact your use of cash in the future. You don’t ride your horse backwards. Don’t manage your business backwards!

1. Elk Mountain Grass Hay is entered in the Enter / Select Purchased Item dropdown. After Elk Mountain Grass Hay has been entered it can be selected anytime if changes need to be made to the initial setup.

Note 1: Recalling an item’s setup after it has been entered will display its complete setup to which changes can be made and reentered.

2. Next you select the Inventory category in which the Elk Mountain Grass Hay on hand will be managed. Since Elk Mountain Grass Hay is a critical supply to the business an inventory count should be managed. equineGenie will do this automatically for you without you having to do anything until equineGenie reminds you to purchase more Elk Mountain Grass Hay.

3. Enter the contact information of your Elk Mountain Grass Hay supplier. If you have previously entered an item supplied by your Elk Mountain Grass Hay supplier, your supplier does need to be reentered. If your Elk Mountain Grass Hay supplier had been previously entered for another item you would select the supplier from the dropdown to identify the supplier as also being your Elk Mountain Grass Hay supplier.

Important: Next is a very important part of an item’s supplied setup and deserves some foundation information. The majority of the following information is repeated from the Items Supplied Setup training document [20231006234514_429288.pdf (photobiz.com)], but it is important enough to also be in this tutorial.

An item’s safety stock, its supplier lead time and its consumption rate are used to generate an item’s reorder trigger. This makes sure you always have what you need, when you need it, but never more than you need. This will help prevent waste, spoilage and conserve cash. Inventory is cash at rest. If it spoils, gets lost or is never used it is wasted money. Wasting money should be one of the seven deadly sins in a business.

A major concern with an item like horse forage is that it loses most of its nutritional value after one year. Think about this before you purchase a year’s supply of hay and what its nutritional value is after it has set in your inventory for several months. Quantity price breaks are good for your pocketbook, but not always good for your horses. It is also fair to question your hay supplier about the age of the hay you are purchasing.

You need to enter a safety stock if an item’s on hand quantity is going to be maintained in inventory and managed by equinegenie. The safety stock is the quantity that you want on hand before equineGenie reminds you to purchase more of that item. If you don’t want a reorder reminder, set the item’s safety stock to ‘0’. If the safety stock is set to ‘0’, you can still inventory an item, but equineGenie will not generate a reorder reminder.

If the supplier of the item is the primary supplier you would select the Primary Supplier button. The primary supplier is the supplier who should be contacted first when an item needs to be purchased.

Important: Your primary suppliers should be your best suppliers for product quality and on time delivery, not necessarily the lowest price. equineGenie tracks, measures and manages your supplier quality and on time delivery for you.

The delivery lead time should be identified for all suppliers of an item even if the item is not being inventoried. You select the supplier’s delivery lead time in days from the Delivery Lead Time dropdown. The delivery lead time is used in an item’s reorder reminder calculation if the item’s safety stock has not been set to ‘0’. Delivery Lead Time is always used to measure a supplier’s delivery performance even if an item does not have a reorder reminder.

Your supplier’s lead time can tie up your cash if you are not careful with your supplier selection. Long delivery lead time can lead to too much unnecessary inventory. Remember, inventory is cash at rest. However, you should always consider the quality of the product a supplier delivers against their lead time. Our horse’s wellbeing is always worth a little cash at rest!

Important: An item’s Unit of Measure must be selected from the Units dropdown. An item’s unit of measure must be the same when purchasing, consuming and inventorying the item.

Unit of Measure Example; If you feed hay by the pound or kilogram, and if you don’t you should, you must inventory your hay by the pound or kilogram, and you must purchase your hay by the pound or kilogram. If you purchase your hay by the bale, you can weigh a few bales to get the average weight of a typical bale. I suggest you weigh five bales. You calculate the average weight of a typical bale by taking the total weight of all the bales you weighed and dividing the total weight by the number of bales weighed (Typical Bale Average Weight = Total Weight of Bales Weighed / # Bales Weighed). To calculate the total weight of all the bales you purchased you multiply the number of bales purchased by the average weight of a typical bale (# Bales Purchased x Average Weight Typical Bale). This will give you the total weight of all the bales you purchased in pounds or kilograms depending on your business’s measurement system selection. The total weight is what you use as the purchase quantity, not the number of bales.

Note 2: The Units displayed in the Units dropdown are based on the business’s measurement system selection on the Preferences screen. Business Preferences in this document.

An item’s unit of measure can be changed after it has been locked by unlocking the units and selecting a new unit of measure from the Units dropdown. However, if an item’s unit of measure is changed and the item is inventoried, an inventory of the item must be taken to reset its reorder reminder to match the new unit of measure.

Information: Knowing how much you feed a horse is extremely important to a horse’s health –and your pocketbook. There is a video link on the horse nutrition setup screens that illustrates how to easily measure the quantity of feed you are feeding each of your horses.

4. In this example we entered 750 for the safety stock because we want to have 750 pounds of Elk Mountain Grass Hay on hand before equineGenie reminds us to purchase more. We identify Northern Colorado Feeder’s Supply as the primary supplier. We select ‘2’ from the lead Time dropdown because we know Northern Colorado Feeder’s Supply can deliver Elk Mountain Grass Hay within two days after they are notified. Since we feed Elk Mountain Grass Hay by the pound we lock the unit of measure for pound. BTW – 750 pounds is 10 bales of Elk Mountain Grass Hay at an average weight of 75 pounds per bale.

5. If you are going to add your supplier to the equineGenie address book, you select the Add To Address Book button. The suppliers contact information will be added to the equineGenie address book. The address book screen provides for additional information like a supplier’s business purpose and picture. If addition information needs to be added, it can be added on the address book screen. Adding additional supplier information to the equineGenie address book is explained in the ‘Genie Academy’ training document: 20231108081657_431824.pdf (photobiz.com).

6. If an item has a second source, and it is good business practice to have a second source for all items critical to your business’s operation and success, a second source supplier can be added by selecting the Same Item Another Supplier. Selecting the Same Item Another Supplier will enter and clear Northern Colorado Feeder’s Supply contact information and the delivery lead time. The second source supplier’s contact information can be added and their deliver lead time selected. Adding a second source should be already understood so we will not be added in this tutorial.

Note 3: equineGenie allows for as many suppliers as you want to enter for any purchased item. Most horse people are excellent with horses but have had little to no business training and depend too much on their accountant to make sure their business is financially accurate. I am sure you have learned or are learning that a successful business is not only about the numbers, but how you get to the numbers. I equate Business Operations with the game of golf. In golf there is an expression that you drive for show but put for dough. In a horse business, Business Operations is the putting. Your accountant will rarely (if ever) tell you about having a second source supplier or to track your purchased item’s unit cost or cost by supplier, etc. – equineGenie will!

7. If the item’s supplier has not had their financial information entered select the Go To Supplier Financial Account button. Selection of the button will enter the Item Supplied Setup information and display the Vendor / Supplier Account Setup screen.

Note 4: The supplier contact information entered on the Item Supplied Setup screen is automatically transferred to the Vendor/Supplier Account Setup screen and does not need to be reentered.

Vendor / Supplier Setup Information Transfer Example

Vendor / Supplier Account Setup

All vendor / suppliers need to have their account information setup in equineGenie. This is required even if your business does not have a charge account with the supplier. Entering the Vendor / Supplier Account Setup screen from the Item Supplied Setup screen will display the item’s supplier contact information already entered.

1. If the Vendor / Supplier Account Setup screen is entered by selecting the Go To Supplier Financial Account button on the Item Supplied Setup screen the supplier contact information displayed on the Item supplied Setup screen will be displayed on the Vendor / Supplier Account Setup screen. In this example Northern Colorado Feeder’s Supply is displayed because they were identified as the supplier of the Elk Mountain Grass Hay entered on the Item Supplied Setup screen.

Note 1: The supplier contact information displayed can be changed on this screen. Any changes will be saved and displayed whenever the suppler is displayed on any associated screen and reports.

2. Enter an account number in the Enter / Select Account # dropdown. If you have an existing charge account with the supplier, you will enter the existing account number. If you do not have an existing charge account, make up an account number. In this example the business does not have a charge account with Northern Colorado Feeder’s Supply, so the made-up account number 001 is entered.

Note 2: All Vendor / Suppliers must have an account number. If the supplier does not have an existing account number, you can make one up. A Vendor / Suppliers account number can be a numeric, alphanumeric or all alpha characters. A Vendor must have an account number even if your business does not have a charge account with the vendor or supplier!

3. If the business has a charge account with the vendor / supplier the charge account conditions would be entered or selected. If the business doesn’t have a charge account with the vendor / supplier the account conditions do not need to be entered. In this example the business does have a charge account with Northern Colorado Feeder’s Supply with a $10,000 credit limit and 30 net payment terms.

Important: For completeness, if the business has a charge account with a vendor / supplier and there was a credit limit the credit limit would be entered in the Enter Credit Limit box. If there were payment terms the payment terms would be selected from the Payment Terms dropdown. If there were late charges the late charges would be entered in the late charge boxes. If the late charge was a percentage of the past due amount, the percentage would be entered in Late Charge (%) box. If the late charge was a fixed amount, the amount would be entered the Late Charge ($) box. Some vendor / suppliers have both a late charge percentage and an amount. If there are both late charges, equineGenie will use the larger of the two when calculating a late charge. Finally, if there is an existing account balance with a vendor / supplier the existing balance would be entered in the Account Balance ($) box. Enter ‘0’ even if you do not have an account with a vendor / supplier or the account is paid in full.

4. If the business has more than one charge account with a vendor / supplier you can add another account by selecting the Another Charge Account Same Supplier. Selecting Another Charge Account Same Supplier will enter and clear the previous account number and account conditions so the next account number and its conditions can be entered and selected.

Important: This concludes setting up the required prerequisites. It is important to understand that setting the prerequisites up is a onetime requirement. The business can now purchase Elk Mountain Grass Hay by only having to select or entering information on the purchases screen and the payment financial popups. Completing the Items Supplied Setup for each supply purchased reduces the purchase and financial transaction entry time considerably and makes the process much more effective, efficient and accurate and provides valuable management information.

Inventory Count

An inventory count of the items you already use should not be taken until you purchase the same item in equineGenie. Why - inventory is not just a count of the number of items on hand; it is also the value of the items on hand. To get the value of an item you need to get its unit cost established. The item’s unit cost is established when it is purchased in equineGenie. After you have made the first purchase of an item in equineGenie you should take inventory of the item on hand to establish the item’s inventory and its inventory value.

1. Enter the inventory date or select the date from the calendar icon.

2. Select the item to be inventoried from the Select Item dropdown.

3. The item’s unit of measure and its last purchase unit cost will be displayed.

4. Enter or select where the item is located.

Enter the inventoried count for each location if the item is located in multiple locations.

Select the green Count Complete button to enter the new inventory count.

If the item is located in multiple locations, selected Multiple Locations Same Item and repeat the item count for the next location until the item count is complete.

5. equineGenie will calculate and display your inventory status.

Running Total Units: Selected item’s total quantity on hand.
Total Units Counted: New quantity of the item being counted.
Total Value: Monetary value of the selected item on hand.
Previous Units Counted: Previous count of the selected item before new count.
Previous Units Cost: The selected item’s cost when the previous count was taken.
Count Adjustment +/-: Overage or shrinkage since the last item’s count.
Item Value Change +/-: > or < value change since the last item’s count.

6. An inventory count taken on a selected date can be removed. The complete count information needs to be displayed. When the Remove Selected Count button is selected a Delete Item popup will be displayed to make sure you want to delete the count. Selecting OK will delete the receipt from equineGenie.

Important: The Delete Item popup needs to be selected twice to remove the count from the inventory and the inventory location database table.

Note 1: Inventory can have a significant impact on the available cash in your business. Understanding the value of good inventory management and its financial implications is extremely important. More information on inventory and it management is available in additional documents: 20231007162122_429330.pdf (photobiz.com) and 20240320105720_444624.pdf (photobiz.com).

Purchase – Elk Mountain Grass Hay

Now that the required prerequisites have been completed Elk Mountain Grass Hay can be purchased every time equineGenie reminds you that you need more. When you purchase Elk Mountain Grass Hay you only need to use the Purchases screen. If an item is inventoried and set up for reminders, equineGenie generates a reminder based on the item’s consumption rate, its supplier lead time and the safety stock level you set for the item on the Item Supplied Setup screen.

Remember: If you do not want a reminder, set the Safety Stock to ‘0’ on the Item Supplied Setup screen explained in this tutorial.

Purchase Reminder

1. When an Elk Mountain Grass Hay purchase reminder is generated the Calendar Contact box on the Home screen will flash ‘RED’ continually until the reminder is satisfied.

Note 1: A flashing ‘RED’ reminder will remain flashing if there are other reminders that need to be satisfied.

2. When the Calendar Contact box is selected the Calendar Contacts menu will be displayed with the Task box continually flashing ‘RED’ with the Purchases task highlighted.

3. Selection of the reminder will display a box with the option of closing (ignoring) the reminder or displaying the Purchases screen.

4. Selection of Go To Form will display the Purchases screen and automatically transfer the item to purchase (Elk Mountain Grass Hay), its inventory Category and the current date.

Purchase

The purchase screen will be automatically displayed when the reminder Go To Form button is selected. The purchase screen will display Elk Mountain Grass Hay, Horse Forage inventory category and the date (current date) the reminder is executed. The completion of the Elk Mountain Grass Hay purchase is entered or selected by the purchaser.

1. When the purchase screen is displayed, Elk Mountain Grass Hay will be displayed in the Enter / Select Item To Be Purchased dropdown. Elk Mountain Grass Hay does not need to be entered or selected.

2. When the purchase screen is displayed, the Elk Mountain Grass Hay inventory category identified on the Item Supplied Setup screen will be displayed in the Enter / Select Item Inventory Category dropdown. The Horse Forage inventory category is displayed and does not need to be entered or selected.

3. When the purchase screen is displayed, the current date will be displayed in the Purchase Date dropdown.

Note 1: The purchase date can be changed by selecting the date from the calendar icon or entering the date format set in your windows operating system. (mm/dd/yyyy or dd/mm/yyyy).

4. Enter the date the Elk Mountain Grass Hay will be delivered or was delivered in the Delivery Date box.

Note 2: The delivery date can be entered by selecting the date from the calendar icon or entering the date format set in your windows operating system. (mm/dd/yyyy or dd/mm/yyyy).

Important: If the delivery date is the date the Elk Mountain Grass Hay is going to be delivered and it is beyond the number of days set on the Item Supplied Setup screen, equineGenie will generate a warning that you may run out of Elk Mountain Grass Hay. This is why a second source is so important.

Delivery Date Warning

5. Enter the quantity of Elk Mountain Grass Hay that is being purchased in the Quantity box.

Remember: You feed in pounds or kilograms, so you inventory in pounds or kilograms, so you purchase in pounds or kilograms.

6. The Elk Mountain Grass Hay unit of measure will be displayed in the Unit dropdown.

Remember: The unit displayed is the unit setup on the Item Supplied Setup screen. The unit of measure must be the same unit of measure you feed and inventory.

7. Select how the item purchased will be used. In this example the Elk Mountain Grass Hay will be used in less than a year and even if it lasts long it is an expense and not a fixed asset. Therefore the Immediate Use (Expense) button is selected.

Select if the item purchased will be added to inventory. In this example the Elk Mountain Grass Hay will be added to inventory. Therefore the Add To Inventory/Supplies button is selected.

8. If there is a receipt for a purchased item it should be entered in the Receipt # box. In this example there is a receipt from Northern Colorado Feeder’s Supply so it is entered.

Note 3: The taxing authority likes receipts to verify proof of purchases more than a certain amount ($25 in the USA). equineGenie enables you to scan and store receipts in equineGenie. If you have the discipline to scan and store your receipts, the Receipt # box entry is optional.

9. If there is sales tax on the purchase enter the sales tax in the Sales Tax ($) box. In this example there is no sales tax (Colorado).

10. Enter the total cost, including sales tax, in the Cost box. In this example the total cost is $300.

To complete a purchase select the ‘RED $’ button to the right of the Cost box. Selecting the ‘RED $’ will display the Payment Method, Pay By ... popup.

1. If a purchase needs to be deleted, display the complete purchase and select the Remove Selected Purchase button. A Delete Item popup will be displayed to make sure you want to delete the purchase. Selecting OK will delete the selected purchase from equineGenie.

Note 4: A purchase in equineGenie is saved in multiple database tables. When the Remove Selected Purchase button is selected the complete purchase is removed from all database tables including the financial transaction.

Payment Method – Pay By ...

Important: You can select one of five available Pay By ... selections to pay for the Elk Mountain Grass Hay on the Payment Method popup that is displayed when the ‘RED $’ button to the right of the Cost box is selected. The five available Pay By ... selections are illustrated below.

Available Payment Methods

For this example we are going to use the Pay By ... Check payment method.

Payment Method Pay By ... Popup

1. Select the supplier from the Select Supplier / Vendor / Provider dropdown. In this example Northern Colorado Feeder’s Supply would be selected.

Note 1: The Select Supplier / Vendor / Provider dropdown is a dropdown because there could be, and for many items there should be multiple suppliers (second sources). The 5000 – 9000 Expenses dropdown is automatically displayed and does need to be selected.

2. Select the account from the Select Account dropdown. The account selected is the account in which the purchase will be expensed. In this example account, 5520 – Horse, Forage (Hay) is selected.

Note 2: An expense account does not have to been previously identified on the business’s Chart of Accounts. If an account was not previously identified when the Chart of Accounts (GL) was set up, when selected it will be added to the expense Chart of Accounts (GL).

3. Select the subaccount from the Select Subaccount dropdown. The subaccount selected is the subaccount in which the purchase will be expensed. In this example the subaccount Elk Mountain Grass Hay is selected.

Note 3: A subaccount must have been previously set up under the, 5520 – Horse, Forage (Hay) account to be selected. The, 5520 – Horse, Forage (Hay,) account could have a subaccount for each type of forage the business purchases. A subaccount allows the businesses to not only measure an account in total, but to also measure items that make up the total.

4. Select a department from the Department / Project dropdown if the purchase is being expensed to a department. In this example the Elk Mountain Grass Hay is not only being expensed to the business, but also being expensed to the Boarding department.

Note 4: The Department dropdown will display the departments previously identified on the Departments screen. The total purchase can be expensed to a department or it can be divided between departments. If a purchase is divided between departments the amount expensed to each department will have to be entered separately, e.g., the purchase screen will have to be repeated for each amount charged to each department. Don’t worry; equineGenie does not double count an income or expense when a department is involved.

5. Select the business account that will be used to pay for the purchase. Selecting the desired Pay By ... (Check) button will display the Check Payment By popup.

Note 5: The check business account selected to be used for payment must have been previously setup.

Payment Method Payment By ...

Important: You can select one of six available Payment By Methods to pay for the Elk Mountain Grass Hay on the Payment Method Payment By popup that is displayed when a Pay By ... button is selected on the Payment Method Pay By ... popup. The six available Payment By Methods selections are illustrated below.

Available Payment By Methods

For this example we are using the Payment By Check payment method.

1. Select the checking account from the Checking Account # dropdown. In the example the only checking account setup is automatically displayed.

Note 1: If there is only one checking account it will be displayed in the Checking Account # dropdown and will not need to be selected. See the Genie Academy Training: 20231002002649_428803.pdf (photobiz.com). Financial: Business Accounts document for more information on setting up a business’s checking account.

2. The purchase amount is transferred and displayed from the Purchases screen and does not need to be entered.

3. The purchase date is transferred and displayed from the Purchases screen and does not need to be entered.

4. The selected checking Account Balance and Amount Available are displayed.

Note 2: The difference between the selected checking Account Balance and the Amount Available is an account reserve if one was setup when the checking account was set up. The reserve is to help prevent an account from being overdrawn.

5. Enter the number of the check used to pay for the purchase in the Check # box. In this example, check number 1256 is entered.

Note 3: If a check is not the form of payment, the form of payment can be entered in the Check # box. For Example: If the payment is made by a bank transfer, the type bank transfer can be entered; Zelle, Venmo, etc.

6. The check information can be added to the check print file by selecting the Add Check To Check Print File button. The check print file can be exported in an Excel spreadsheet format.

Note 4: equineGenie does not print checks. However, the check print file can be exported and input into several available and inexpensive check printing programs.

7. Selecting Pay will complete the financial portion of the purchase transaction and redisplay the Purchases screen.

8. The cost will be displayed in brackets indicating that the financial part of the purchase transaction is complete.

9. Selecting enter will complete the purchase and enter all the purchase information into the appropriate database tables.

Purchase Information Usage Examples

Inventory Count – Elk Mountain Grass Hay

An inventory count of Elk Mount Grass Hay can be taken. Now that we know the unit cost of the latest purchase of Elk Mountain Grass Hay we can establish its inventory value.

1. Enter the inventory date in The Count Date dropdown or select the date from the calendar icon. In this example the count date is May 9, 2024.

2. Select the item to be inventoried from the Select Item dropdown. In this example the inventory count is for Elk Mountain Grass Hay.

3. The item’s unit of measure and its last purchase unit cost will be automatically displayed.

4. Enter or select the item’s location in the Enter/Select Item’s Location dropdown. In this example Elk Mountain Grass Hay is located in the Hay Shed.

Enter the inventoried count in the Quantity / Location box for each location if the item is located in multiple locations. In this example Elk Mountain Grass Hay is only located in the Hay Shed.

Select the green Count Complete button for the inventory count in each location. In this example the Elk Mountain Grass Hay inventory count on May 9, 2024 is 1480.

If the item is located in multiple locations, selected Multiple Locations Same Item and repeat the item count for the next location until the item count is complete for all locations.

Important: equineGenie will keep track of the inventory count in each location and will automatically calculate the total inventory count for the item being counted.

5. equineGenie will calculate and display your inventory status.

Running Total Units: 1480 pounds of Elk Mountain Grass Hay available on May 9, 2024.
Total Units Counted: 1480 pounds of Elk Mountain Grass Hay counted on May 9, 2024.
Total Value: The value of the Elk Mountain Grass Hay on May 9, 2024 is $296 (1480 pounds x $0.20 / lb.)
Previous Units Counted: This is the 1^st count so there is no previous count.
Previous Units Cost: This is the 1^st count so there is no previous unit count.
Count Adjustment +/-: This is the 1^st count so there is no overage or shrinkage since the last item’s count.
Item Value Change +/-: This is the 1^st count so there is no value change since the last item’s count.

Important: The Delete Item popup needs to be selected twice to remove the count from the inventory and the inventory location database table.

Inventory Count and Value Examples

Purchase Receipt Storage

You can store your purchase receipts in equinegenie. You can easily categorize your receipts by supplier, date, receipt number, department and identifier.

1. Select the supplier from the Select Vendor / Supplier dropdown. In our Elk Mountain Grass Hay purchase example Northern Colorado Feeder’s Supply would be selected.

2. Enter the date on the receipt in the Receipt Date dropdown. A date can also be selected from the Receipt Date dropdown to recall a selected supplier’s previous receipt. In our Elk Mountain Grass Hay purchase example the receipt date entered would have been 5/8/2024.

Note 1: The receipt date can be entered by selecting the date from the calendar icon or entering the date format set in your windows operating system. (mm/dd/yyyy or dd/mm/yyyy).

3. Enter the receipt number in the Receipt # dropdown. A receipt number can also be selected from the Receipt # dropdown to recall a selected supplier’s previous receipt entered on a selected date. In our Elk Mountain Grass Hay purchase example the receipt number entered is NCFS-1234.

4. If you want to connect a receipt to a department, select the department from the Select a Department (if applicable) dropdown. In our Elk Mountain Grass Hay purchase example the boarding department would be selected.

5. You can enter a receipt identifier in the Identify The Receipt dropdown. A receipt identifier can also be selected from the Identify The Receipt dropdown to recall a selected supplier’s previous receipt entered on a selected date with a selected receipt number. In our Elk Mountain Grass Hay purchase example the receipt identifier is Elk Mountain Grass Hay Purchase.

6. After you have scanned your receipt, to store the receipt in equineGenie select the Locate button to locate the scanned receipt. Opening the receipt where it is located will enter it into equinegenie. The entered receipt can be viewed by selecting the View button. A selected receipt can be removed from equineGenie be selecting the Clear button. When the Clear button is selected a Delete Item popup will be displayed to make sure you want to delete the receipt. Selecting OK will delete the receipt from equineGenie.

Note 2: Receipts can be stored in any file format; PDF, document, text, image and a video. Storing a receipt in equineGenie saves you invaluable time when having to remember the purchase, or satisfy proof of purchase or recall the receipt for an audit.

7. If you have a receipt from the same supplier on the same date, selecting Another Receipt Same Supplier, Same Date will store the previous receipt and its information. The Receipt # dropdown will cleared and the new receipt from the same supplier on the same date can be stored as explained in steps 3, 4, 5 and 6.