Understanding the Purchase Process in Tigg

A purchase refers to a transaction in which a business acquires goods or services from a supplier in exchange for payment. Managing the purchase process efficiently is essential for maintaining accurate records of supplier transactions, tracking payables, and ensuring proper financial reporting.

The Purchase Module in Tigg is designed to manage and streamline the entire procurement lifecycle from placing an order with a supplier to settling the final payment. It provides a structured workflow that allows businesses to track supplier commitments, document incoming goods and services, and record financial transactions related to purchases.

In most organizations, the purchase process typically follows these steps:

Purchase Order – A formal request sent to a supplier describing the goods or services, quantities, prices, and terms.

Purchase Bill – A financial document received from the supplier requesting payment for the goods or services supplied.
Expense – Costs incurred by the business for operational or other purposes, recorded separately or alongside purchases.
Supplier Payment – The business settles the bill through cash, bank transfer, or other payment methods.
Debit Note (if applicable) – Issued when goods are returned, discounts are received after billing, or corrections are required.

This process helps businesses maintain proper documentation of supplier commitments, received goods or services, and the financial transactions associated with them.

Tigg follows a structured purchase workflow that helps businesses manage supplier transactions efficiently.

A Purchase Order is created to place an order with a supplier before the purchase is confirmed. It includes item details, quantities, pricing, and terms. Purchase orders help businesses formally request goods or services and track upcoming purchases.

Once the supplier delivers the goods or services, a Purchase Bill is recorded. This document captures the actual expense and creates a payable in the system. It becomes part of the accounting records and impacts expense recognition.

In Tigg Purchase Bill and Expense are two different ways of recording supplier bills in Tigg. A Purchase Bill is used when purchasing inventory or trading goods that require item-wise tracking and will later be resold. An Expense, on the other hand, is used for supplier bills related to services, office expenses, utilities, or even the purchase of fixed assets where inventory tracking is not required. Unlike Purchase Bills, Expenses do not require item-wise entry and can be recorded directly by selecting the appropriate GL account. In summary, if inventory tracking is needed, use a Purchase Bill; otherwise, use Expense to record the supplier bill directly.

After receiving the bill( Both Purchase Bill and Expenses), the business makes payment to the supplier. Payments can be recorded in Tigg and allocated to one or multiple bills to track outstanding balances.

If goods are returned to the supplier, there is overbilling, or adjustments are needed, a Debit Note is issued. This reduces the amount payable to the supplier or records the return of purchased goods.

Benefits of Using the Purchase Module
Using the Purchase Module in Tigg allows businesses to:

• Maintain a clear record of all supplier transactions
• Track outstanding bills and supplier balances
• Manage purchase orders and confirmations efficiently
• Record payments and allocate them to bills accurately
• Handle purchase returns or adjustments through debit notes

By following a structured workflow, Tigg helps businesses maintain accurate financial records and gain better visibility into their purchase operations.

What's Next?

Start by adding your first supplier — suppliers are the foundation of every purchase order and procurement activity.

➡️ Learn more: Managing Suppliers