A buy-out in Fincon Accounting is a mechanism that can be used to buy and sell something that isn't stock (i.e. it isn't normally bought and held on-hand with the intention of selling). This mechanism works nicely in those situations where you buy something to sell that you don't normally carry.
For example, ABC Ltd is in the business of selling stationery. Due to the director's connections in the IT industry, one of their clients has asked them to get 50 keyboards from one of their contacts. Now, one way to handle this is to GRV this stock in and then immediately sell it but this will involve creating an inventory item for the keyboards. A much better approach would be to create a buy-out for the keyboards and then invoice the buy-out to the customer.
A buy out can be created in 2 ways:
- Creating a buy-out with a purchase order (buy-out purchase order)
- Creating a buy-out without a purchase order
Creating a buy-out with a purchase order
Watch this video to see how to create a buy-out with a purchase order or follow the steps below it.
Navigate to the correct window
- Navigate to Creditors / Buy-outs / Enter Buy-out.
Call up the appropriate purchase order
- Enter (or select) the appropriate purchase order number in the Order Number text box.
Enter the buy-out line items
- Change the description of the line items in the DESCRIPTION column, if required.
- Enter the supplier invoice number(s) of the line items in the SUPPL INV column.
- Change the total excluding amounts of the line items in the TOTAL EXCL column, or the total including amounts in the TOTAL INCL column, if required.
- Change the appropriate tax codes of the line items in the CODE column, if required.
Create the buy-out
- Click the Accept button.
- Specify the print options and click OK, or click the Cancel button to close the window without printing.
Creating a buy-out without a purchase order
Watch this video to see how to create a buy-out without a purchase order or follow the steps below it.
Navigate to the correct window
- Navigate to Creditors / Buy-outs / Enter Buy-out.
Enter the buy-out general details
- Enter (or select) the appropriate supplier account in the Account text box.
- Enter the date of the buy-out in the Date text box.
Enter the buy-out line items
- Enter the description of the line items in the DESCRIPTION column.
- Enter the supplier invoice number(s) of the line items in the SUPPL INV column.
- Enter the total excluding amounts of the line items in the TOTAL EXCL column, or the total including amounts in the TOTAL INCL column.
- Enter (or select) the appropriate tax codes of the line items in the CODE column.
Create the buy-out
- Click the Accept button.
- Specify the print options and click OK, or click the Cancel button to close the window without printing.