Guides
Purchase
Vendors

Vendors

Lekha’s Vendor Management module streamlines the way you handle supplier relationships—from onboarding to ongoing procurement. Easily create and classify vendors with their GST treatments, set payment terms, and record contact details, billing addresses, and opening balances—all from one intuitive interface.

By maintaining structured and searchable vendor records, Lekha enables faster procurement, seamless purchase order processing, and accurate financial reporting. Whether you’re managing a handful of suppliers or scaling to hundreds, this system ensures your supply chain stays organized and audit-ready.

Creating a New Vendor

Creating comprehensive vendor records ensures smooth procurement transactions and accurate financial reporting. The vendor form is organized into logical sections for easy data entry.

Step 1: Access the Vendors Section

  1. Navigate to Purchase in the main menu
  2. Click on Vendors from the submenu
  3. You’ll see the vendors list page

Step 2: Add New Vendor

  1. Click the "+ New" button
  2. A vendor creation form will appear with multiple sections

Step 3: Basic Information

Display Name (Required)

  • Enter the vendor’s display name (maximum 50 characters)
  • This name appears in transactions and reports
  • Examples: “ABC Suppliers”, “Tech Components Ltd”, “Raw Materials Inc”

Company Name (Optional)

  • Enter the vendor’s company name (maximum 255 characters)
  • Full legal name of the vendor organization
  • Examples: “ABC Suppliers Private Limited”, “Tech Components Corporation”

Udyam/MSME (Optional)

  • Toggle to enable if vendor is MSME registered
  • Helpful for generating MSME-specific reports and compliance

Udyam/MSME Number (Required when MSME enabled)

  • Enter the MSME registration number (maximum 20 characters)
  • Required only when MSME toggle is enabled
  • Used for MSME compliance reporting

Website (Optional)

  • Enter vendor’s website URL (maximum 255 characters)
  • Helps with vendor verification and communication
  • Examples: “https://www.abcsuppliers.com”

GST Treatment (Required)

  • Select the appropriate GST classification:
GST Treatment Description
Registered Business A business registered under GST and eligible to claim input tax credit.
Unregistered Business A business not registered under GST. Typically not eligible for input credits.
Consumer End consumer not conducting business; GST not charged on B2C invoices.
Overseas Vendors located outside India. Typically treated as import transactions.
Special Economic Zone Vendors or entities in designated SEZ zones with specific GST exemptions.
  • This determines tax calculations and compliance requirements

Supply Source (Required for domestic vendors)

  • Select the state from which vendor supplies goods/services
  • Required when vendor is from the same country as organization
  • Affects GST calculations (intra-state vs inter-state)

GSTIN / UID (Required when applicable)

  • Enter GST identification number (maximum 20 characters)
  • Required when GST treatment requires GST registration
  • Format: 15-digit alphanumeric code

PAN (Optional)

  • Enter Permanent Account Number (maximum 10 characters)
  • Required for certain GST treatments and compliance
  • Format: 10-character alphanumeric code

Currency (Required)

  • Select the transaction currency for this vendor
  • Cannot be changed once vendor is created and used in transactions
  • Affects all future transactions with this vendor

Opening Balance (Optional - New vendors only)

  • Enter the initial account balance with currency prefix
  • Positive for amounts you owe the vendor
  • Negative for amounts vendor owes you
  • Only available when creating new vendors
  • Type: number with 2 decimal precision

Payment Terms (Optional)

  • Select default payment terms for this vendor
  • Use "+" button to manage available terms
  • Examples: “Net 30”, “Against Delivery”, “45 Days”
  • Used as default in purchase orders and bills

Step 4: Primary Contact Information

Salutation (Optional)

  • Enter contact person’s salutation (maximum 10 characters)
  • Examples: “Mr.”, “Ms.”, “Dr.”, “Manager”

First Name (Optional)

  • Enter contact person’s first name (maximum 50 characters)
  • Primary contact for communication

Last Name (Optional)

  • Enter contact person’s last name (maximum 50 characters)
  • Completes the contact person’s name

Call Country Code (Optional)

  • Enter phone country code (maximum 5 characters)
  • Examples: “+1”, “+91”, “+44”

Phone Number (Optional)

  • Enter contact phone number (maximum 15 characters)
  • Primary phone number for communication

Email (Optional)

  • Enter contact email address (maximum 255 characters)
  • Used for sending purchase orders and communication
  • Must be valid email format

Step 5: Billing Address

Country (Optional)

  • Select the billing country
  • Used for tax calculations and compliance
  • Triggers state reload when changed

Address Line 1 (Optional)

  • Enter primary address line (maximum 50 characters)
  • Street number and street name

Address Line 2 (Optional)

  • Enter secondary address line (maximum 50 characters)
  • Apartment, suite, or building details

Address Line 3 (Optional)

  • Enter tertiary address line (maximum 50 characters)
  • Additional address details if needed

City (Optional)

  • Enter billing city (maximum 50 characters)
  • City or town for billing address

State (Optional)

  • Select billing state or province
  • Use "🔄" reload button if country was changed after selection
  • Used for tax calculations and compliance

Zip Code (Optional)

  • Enter postal or zip code (maximum 15 characters)
  • Postal code for the billing address

Call Country Code (Optional)

  • Enter phone country code for billing (maximum 5 characters)
  • May differ from primary contact

Phone Number (Optional)

  • Enter phone number for billing (maximum 15 characters)
  • Alternative contact number for billing

Step 6: Shipping Address

Same as Billing Address (Optional, default: true)

  • Toggle to use billing address for shipping
  • When enabled, shipping fields are hidden
  • When disabled, separate shipping address fields appear

When shipping address differs from billing:

Country (Optional)

  • Select the shipping country
  • Used for delivery and logistics
  • Triggers state reload when changed

Address Line 1 (Optional)

  • Enter primary shipping address (maximum 50 characters)
  • Delivery location details

Address Line 2 (Optional)

  • Enter secondary shipping address (maximum 50 characters)
  • Additional delivery details

Address Line 3 (Optional)

  • Enter tertiary shipping address (maximum 50 characters)
  • Extra delivery information

City (Optional)

  • Enter shipping city (maximum 50 characters)
  • Delivery city or town

State (Optional)

  • Select shipping state or province
  • Use "🔄" reload button if country was changed after selection
  • Used for delivery logistics

Zip Code (Optional)

  • Enter shipping postal code (maximum 15 characters)
  • Delivery area postal code

Call Country Code (Optional)

  • Enter phone country code for shipping (maximum 5 characters)
  • Contact for delivery coordination

Phone Number (Optional)

  • Enter phone number for shipping (maximum 15 characters)
  • Contact number for delivery

Step 7: Save Vendor

  1. Review all entered information
  2. Ensure required fields are completed
  3. Click “Save” to create the vendor
  4. The new vendor will appear in your vendors list

Editing an Existing Vendor

Vendor information can be updated to keep records current and accurate.

Step 1: Find the Vendor

  1. Go to the Vendors section under Purchase
  2. Use the search function to locate the vendor
  3. Or browse through the vendors list

Step 2: Access Edit Mode

  1. Click on the vendor name or select the vendor row
  2. Click the “Edit” button
  3. The vendor editing form will open

Step 3: Modify Vendor Information

You can update most fields except:

  • Currency: Cannot be changed once vendor created
  • Opening Balance: Cannot be changed once vendor created

Common updates include:

  • Contact information changes
  • Address updates
  • GST treatment modifications
  • Payment terms adjustments
  • Website updates

Step 4: Special Considerations

Currency Auto-update:

  • Opening balance currency updates automatically when currency selection changes
  • Defaults to organization currency for new vendors

Address Synchronization:

  • Shipping address can auto-sync with billing address via toggle
  • Use reload buttons after changing country selections

Step 5: Save Changes

  1. Review your modifications
  2. Click “Save” button
  3. Updated information will reflect in future transactions

Deleting a Vendor

Vendors can only be deleted if they haven’t been used in any transactions.

Step 1: Find the Vendor

  1. Go to the Vendors section under Purchase
  2. Use the search function to locate the vendor
  3. Or browse through the vendors list

Step 2: Access Edit Mode

  1. Click on the vendor name or select the vendor row
  2. Click the “Edit” button
  3. The vendor editing form will open

Step 3: Delete Vendor

  1. Review the vendor details to ensure you’re deleting the correct vendor
  2. Click “Delete” button
  3. Confirm the deletion when prompted

Important: If the vendor has been used in any purchase transactions, bills, or orders, deletion will not be allowed. You’ll need to remove them from all transactions first.

Best Practices for Vendor Management

Data Accuracy

  • Keep contact information updated
  • Verify GST numbers and PAN details
  • Regularly review and clean duplicate entries
  • Maintain consistent naming conventions

GST Compliance

  • Ensure correct GST treatment classification
  • Verify GSTIN format and validity
  • Keep supply source information accurate
  • Update MSME status when applicable

Communication

  • Maintain current email addresses for purchase orders
  • Keep phone numbers updated for delivery coordination
  • Use clear, professional display names
  • Set appropriate payment terms

Organization

  • Use consistent naming conventions
  • Group related vendors logically
  • Regular data cleanup and verification
  • Archive inactive vendors rather than deleting

Security and Privacy

  • Limit access to vendor data
  • Regular backup of vendor information
  • Comply with data protection regulations
  • Secure handling of financial information

Common Use Cases

Domestic Vendors

  • Complete GST registration details
  • Accurate supply source information
  • Local payment terms and banking
  • Regional contact information

International Vendors

  • Overseas GST treatment
  • Foreign currency considerations
  • International shipping addresses
  • Import documentation requirements

MSME Vendors

  • MSME registration details
  • Special payment considerations
  • Compliance requirements
  • Priority vendor reporting

Service Providers

  • Professional service vendors
  • Consulting and maintenance providers
  • Software and subscription services
  • Support and training vendors

Integration with Other Features

Vendor records integrate with:

  • Purchase Orders: Auto-populate vendor details
  • Bills: Default vendor information and terms
  • Payments: Track vendor balances and payment history
  • Reports: Vendor-wise purchase and aging reports
  • Communications: Automated email and purchase order notifications

Field Dependencies and Validations

Conditional Fields

  • MSME Number: Only appears when MSME toggle is enabled
  • Supply Source: Only for domestic vendors (same country as organization)
  • Opening Balance: Only available for new vendor creation
  • Shipping Address: Only when different from billing address

Validation Rules

  • Display Name: Required, maximum 50 characters
  • GSTIN/UID: Required when GST treatment demands it, maximum 20 characters
  • Email: Must be valid email format, maximum 255 characters
  • Opening Balance: Number with 2 decimal precision
  • Phone Numbers: Maximum 15 characters
  • Address Lines: Maximum 50 characters each

Special Features

  • State Reload: Automatic state list update when country changes
  • Currency Sync: Opening balance currency updates with currency selection
  • Address Sync: Shipping address can mirror billing address
  • Payment Terms Management: Direct access to payment terms configuration

This comprehensive vendor management system ensures accurate procurement processes while maintaining regulatory compliance and operational efficiency.

PurchaseExpenses