Invoice, VAT and Inventory in Company Device Purchases: A Purchasing Checklist

For companies, buying computers carries tax, documentation and accounting dimensions that individual purchases do not. We have summarised the points the purchasing officer should check before and after the purchase. This article is general information; consult your accountant for your own situation.

1. Invoice and document order

Make sure the invoice is issued with the correct name, tax office and tax number. Goods are delivered with an e-waybill and the invoice arrives as an e-Invoice or e-Archive invoice. The serial numbers of the devices should be listed in an invoice attachment or on the waybill; this record is needed for both warranty and inventory.

2. VAT

On purchases related to the business activity, the VAT paid is generally treated as deductible input VAT. Rules may differ for exempt taxpayers or those under special regimes. Budget by separating the invoice amount into excluding and including VAT: a purchase of 1,000,000 TRY excluding VAT means a payment of 1,200,000 TRY at 20 percent VAT.

3. Depreciation and expensing

Computers are generally treated as fixed assets with an economic life. The depreciation period and the limits below which assets can be expensed directly are updated from year to year, so confirm current rates and limits with your accountant.

4. Payment method

On term purchases interest and term charges appear as a separate line on the invoice. Compare the cash discount advantage with the financing cost of terms. If your monthly financing cost is 3 percent, 60 days of term equates to about 6 percent cost; if the cash discount is 2 - 3 percent, term payment may make more sense.

5. Warranty documents

The warranty period starts from the invoice date. Keep the invoice and serial number list in a digital archive. Check on delivery whether the brand warranty is in your name or in the reseller's name.

6. Inventory labelling

Give each device an inventory number and match its serial number with the fixed asset record in the accounting system. In bulk setup Çipsa delivers labelling and the serial number list as Excel.

7. Disposal

Selling or scrapping old devices also needs an accounting record. For data security, document that the disks were securely erased.

Checklist

Are the invoice details correct? Are the serial numbers recorded? Are the warranty documents archived? Are the inventory labels stuck on? These four questions secure order after the purchase.