In Gofrugal RetailEasy (RPOS7), the Purchase Formula is one of the most important configurations, as it controls how your item’s purchase rate is calculated inside the software.

This directly affects:

 Stock Value
 Profit Margin
 Selling Price decisions
 GST accuracy
 Landing cost
 Cost-based reports

Here’s a clear explanation of the purpose and benefits:

✅ Purpose of RetailEasy Purchase Formula:

To calculate the real cost of an item accurately. A purchase invoice often includes:

• Discounts

• Scheme offers

• Additional charges

• Freight, loading, packing

• Tax (inclusive/exclusive)

The formula ensures these are all mathematically applied to calculate the true purchase rate.

To distribute additional charges properly

Invoices may have lump-sum charges like:

Transport → ₹1000

Loading → ₹300

Packing → ₹200

Purchase Formula distributes these charges to each item fairly, using methods like:

• Quantity-based

• Value-based

• This gives each item its correct landed cost.

To standardize purchase costs across branches

For multi-store customers, the purchase formula keeps cost uniform by following the same rules in all outlets.

To avoid manual mistakes

Without a purchase formula, users must manually calculate:

• Per-item loading charges

• Discounts

• Tax adjustments

• This leads to mistakes.

• The purchase formula automates the process.

🎯 Key Benefits:

Accurate Profit Calculation

Since cost is correct, the following reports become accurate:

• Gross Profit

• Cost of Goods Sold (COGS)

• Item-wise Margin

• Category-wise Margin

• Incorrect purchase rate = wrong profit.

Better Selling Price Decisions

If the formula adds all extra costs, you know the true cost. This ensures the selling price is set with correct margin.

Help during Supplier Negotiation

When purchase rate includes all costs, you see the actual cost difference between suppliers, not just invoice price.

Better Stock Valuation

Stock valuation in:

• Inventory report

• Balance sheet

• Stock audit

Becomes exact when landed cost is accurate.

GST Accuracy

RetailEasy purchase formula clarifies:

• Whether tax was already included

• How to back-calculate purchase rate

• How tax affects total cost

• This prevents GST mismatch during filing.

 Let's take a look at how this is done:

1. Open RetailEasy and navigate to Purchase > Purchase Formula.

2. Add the Formula Name.

3. Select the Distributor Type = Local / Interstate / Import.

4. If you want to assign the purchase formula only for a specific distributor, click the radio button beside Specific Distributors.

5. Click on the distributor name field and press enter.

6. Choose the desired distributor. Remember, you can select only one distributor at a time; multi-select is not available.

7. If you want to assign the purchase formula for all the distributors, click the radio button beside All Distributors.

8. Select the caption field and press enter.

9. Select the caption details from the list.

Note: If you follow the No column on the caption details, you will have idea, in which order the formula should be created.

10. Select the Rate Deduction from the list and press enter button. It will be added in the list.

11. Similarly select the Scheme Discount from the list.

12. After selecting the Scheme Discount from the list, the cursor will move to the formula field.

13. Select Basic Amount, then press enter.

14. Then again select Rate Deduction, then press enter.

15. Check the Formula Text field, you will see that the formula was created as Basic Amt + Deductions.

16. Click Update Formula.

17. Add the complete formula using the above steps.

Note: The below formula is a complete formula where any kind of general situation can be handled. 

Caption used in the formula:

• Rate Deduction = If there are any rate deductions.

• Scheme Discount = If there are any scheme discounts. [Basic Amount + Rate Deduction]

• Cash Discount = If there are any cash discounts. [Basic Amount + Rate Deduction + Scheme Discount]

• Freight Payable = If there are any freight payable. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount]. Note: freight payable amount will not get added in the bill but will be added with the item's landing cost.

• GST = This is to add GST. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount]

• Packing Charges = If there are any packing charges. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount] Note: Packing charges amount will be added in the bill & with the item's landing cost.

• Freight Charges = If there are any freight charges. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount] Note: Freight charges amount will be added in the bill & with the item's landing cost.

• Other Charges =  If there are any other charges. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount] Note: Freight charges amount will be added in the bill & with the item's landing cost.

• Offer Discount =  If there are any offer discounts. [Basic Amount + Rate Deduction + Scheme Discount + Cash Discount] Note: Offer discount amount will be subtracted from the bill & from the item's over all landing cost.

• Extra Cess = If there are any Extra Cess. [Basic Amount] Note: Extra cess  amount will be added in the bill & with the item's landing cost.

Note: If you put captions above the GST field, GST will not be calculated. If you put captions below GST field, GST will be calculated.

18. Click the F6 Save button.

19. Click the OK button.

 In case of interstate distributors, select the Distributor Type as INTERSTATE. The rest of the setup will be the same.

 When you open the purchase entry screen, you may notice that the formula has not appeared yet.  

Please refer to the screenshot below for your reference.

 To apply the purchase formula for automatically to both local and interstate suppliers, you need to set it as the default. Follow the steps to do the same:

1. Click the F4 Change button, then select the desired formula from the list.

2. Click the F9 Set Default button, then click the Yes button.

3. Click the F6 Save button.

4. Click the Yes button.

5. Click the OK button.

6. Click the OK button.

 Now, let's check how the purchase formula works along with taking a transporter name in the purchase screen:

1. Take the distributor.

2. Click the More Options button.

3. Take the Trans Name [Transporter Name] by pressing enter.

4. The New purchase formula will appear. Check that the landing cost is showing [118].

5. Press the F2 Show HDR button and type the desired amount in the Freight Payable.

6. Press the F2 Show HDR button and type the desired amount in the Freight Charges.

Note: In the AccountsEasy profit and loss report, it will appear similarly to the below screenshot.

 Before GST and After GST formula creation:

Let’s consider a scenario where a customer wants to apply three item discounts before the addition of GST [Item Discount 1, Item Discount 2, Item Discount 3], and display discount after the GST is applied [Display Discount], using the same formula we developed earlier. 

To create calculation masters and the purchase formula.

1. Navigate to Purchase > Masters > Calculation Master.

2. Type the name as 'Display Discount'.

3. Select the Add/Sub as Sub as its a discount.

4. Select the Landing Cost formula from the dropdown.

• Consider in Landingcost and Purchase Value: The entered value will be added or subtracted in Landingcost and Purchase Value.

• Consider only Landingcost: The entered value will be added or subtracted only in the Landingcost.

• Donot consider only Landingcost: The entered value will not be added or subtracted only in the Landingcost. It means that the entered value will be added or subtracted only in the Purchase Value.

• Donot consider in Landingcost and Purchase Value:  The entered value will not be added or subtracted in Landingcost and Purchase Value.

Based on our needs, we chose Donot consider only Landingcost.

5. Select the desired ledger where you want to post the values.

Note: We have considered the Discount Received for all the discount-related ledgers.

6. Click the F6 Save button.

7. Create Item Discount 1. Here, the formula will be Consider in Landingcost and Purchase Value.

8. Create the Item Discount 2. Here the formula will be Consider in Landingcost and Purchase Value.

9. Create Item Discount 3. Here the formula will be Consider in Landingcost and Purchase Value.

10. Create the formula by following the previous steps. The formula will look like the below screenshot.

 Formula for Local: Below formula is for all the local distributors. 

 Formula for Interstate: Below formula is for all the interstate distributors.