Stock, Procurement and the Three-Way Match
Indents, purchase orders, goods receipt and supplier bills — and the GR/IR account that makes sure you never pay for something you did not receive.
The classic way to lose money in a project business is to pay a supplier bill for material that never arrived, or to pay twice for the same delivery. The classic defence is the three-way match, and it only works if the system holds all three documents.
The chain
| Step | Document | What it establishes |
|---|---|---|
| 1 | Indent | Somebody needs something, and it was approved |
| 2 | Purchase order | What you ordered, from whom, at what rate |
| 3 | Goods receipt (GRN) | What actually arrived |
| 4 | Supplier bill | What they are charging you for |
What GR/IR is and why it exists
When goods are received, QuantX Ops debits inventory and credits a holding account called Goods Received / Invoice Received. When the supplier's bill arrives, it clears that holding account, books any price variance, records the input tax and credits accounts payable.
The useful consequence: the GR/IR balance is a live list of things you have received but not yet been billed for. A balance that never clears is a bill somebody has not sent you, or a delivery that never happened. Either is worth knowing at month end.
Stock that reflects reality
Items are valued on a moving average, held per location, and every movement — receipt, issue to a project, transfer, adjustment — writes both a stock ledger entry and its journal. Material issued to a project is capitalised into work in progress and released to cost of sales when the project completes, so an unfinished job does not flatter the P&L.