Learn about how purchases work in Craftybase.
Our Expenses feature is being renamed to Purchases from 21 June 2023. More details →
A purchase is a record of a cost incurred to run your business. For most manufacturing businesses, most of your purchases will be related to the materials you buy to create your products.
In this article:
- How purchases are calculated into your inventory
- Entering or bulk importing your purchases
- Tracking your material purchases
- Tracking your overhead costs
- Adding additional purchase categories
- Recurring purchases
- Expected delivery dates (ETAs)
How purchases are calculated into your inventory
When you add a purchase for a material, we will automatically increase the stock levels of the material purchased by the amount in the purchase. We will recalculate your real-time unit costs to factor in the newly purchased stock.
You can add many different materials to the same purchase in Craftybase - this is great for buying many materials from the same supplier. In this case, any shipping costs or discounts applied to the overall PO will be factored into the cost for each material purchased.
Note: Purchases are not designed to handle the actual usage of materials in creating your finished items. To do this, you'll want to create a manufacture containing your used materials. This will automatically calculate your material costs, and adjust your material inventory by the exact amount used in creating the item.
Entering or bulk importing your purchases
Tracking your material purchases
Purchases are primarily for costs associated with buying materials you use to create your products.
When you add a purchase to account for a purchase of your materials, Craftybase will automatically increase the stock levels of the material purchased by the amount in the purchase. It will also then recalculate your real-time unit costs to factor in the newly purchased stock.
To add a material purchase, ensure that you select the "Material" category when adding a new line item to your purchase. This will then prompt you to select or create a material that the purchase relates to.
Tracking your overhead costs
Purchases for your business that are not directly related to a product or order (e.g. rent, utilities, and subscriptions) can also be tracked in Craftybase.
These are referred to as "overhead" purchases (however are also commonly referred to as indirect or general expenses)
To add an overhead purchase:
- Navigate to your Add Purchase page and click the Add Purchase Item button.
- In the Add Purchase Line Item window that appears, select a non-material Purchase category (i.e. Other)
- Enter the cost and quantity of your overhead purchase, then click the Add button
- Click the Save button.
Adding additional purchase categories
Each one of the purchases you add to Craftybase can be classified with a specific category. This allows you to group together your costs to make tallying and reporting simple. It also allows Craftybase to know when an purchase should be added to your inventory and COGS totals.
We do not currently provide the ability to schedule recurring expenses, however, you may wish to use our Copy Purchase feature to quickly clone existing purchases.
Expected delivery dates (ETAs)
You can better track your incoming material shipments by listing the dates they are expected to arrive.
To add ETAs for your purchases:
- Go to your Account Settings
- Select the checkbox titled Track ETAs for Purchases?
When you add a purchase, you will now be able to select the date that you expect your PO to arrive. This optional selection is not required to save your new purchase entry.
If an purchase order is not marked as received and the ETA date has passed, the PO will be flagged as overdue.
This feature is available on our Indie plans and above.
Handling free or found materials
Items you have found or received for free, should be entered into Craftybase as a $0 purchase, since you have not paid anything for these items. The system and COGS would need to reflect the $0 paid for the items, to avoid reporting purchases you did not actually pay on your tax returns.