The contractor buys on credit all month, and one statement shows what they took, what they returned and what they paid.
A can of paint for a homeowner who pays at the counter, cartons of screws for a contractor who settles at the end of the month, and every item in its own unit on the invoice.
Paint and Hardware Store Accounting in Saudi Arabia starts at the counter where you sell for cash to a homeowner and on credit to a contractor. At a store in Riyadh, Jeddah or Dammam, a painting contractor takes paint, cartons of screws and brushes all month, then brings back an unopened can and pays part of what they owe. Add every item in Qoyod as a product with its unit of measure, issue the contractor a credit sales invoice, issue a credit note for what came back, record their payment with a receipt, then open the customer statement report to see the balance due.
1. Where do a paint and hardware store’s numbers go missing?
Before you choose accounting software for a paint and hardware store, look at where your numbers go missing today: contractors’ credit in a notebook on the counter, cans that come back but stay on the contractor’s account, items you buy by the carton and sell by the piece, and thousands of small items whose real count nobody knows.
A credit notebook on the counter
A contractor takes paint and screws all month, the salesperson writes down what they took in a notebook, and when they come to settle, their figure and the notebook’s differ.
With Qoyod: issue them a sales invoice for everything they took and it stays on credit until they pay, and the customer statement report brings together their invoices, their payments and the balance due.
A can came back, the charge stayed
A contractor brings back two unopened cans of paint, they go back on the shelf, and their value stays on the contractor’s account.
With Qoyod: issue a credit note from their invoice for the quantity that came back, so their balance falls by its value and the original invoice stays as it is.
By the carton from the supplier, by the piece to the customer
You buy screws and nails by the carton and sell them by the piece to one customer and by the carton to another, then cannot tell how much of the item is left.
With Qoyod: make the piece the item’s base unit and add the carton in unit conversion, so you buy and sell in either, depending on your subscription.
Damaged cans and items without a count
Between nails, brushes and paint there are thousands of small items, a can leaks or a tool rusts, and nobody knows the gap between the books and the store.
With Qoyod: enter the actual quantity of each item in an inventory count, the difference from the current quantity shows, and you book the shortage to an account for damaged goods, depending on your subscription.
2. One contractor in your books: from the first invoice to the statement
Follow one month with a painting contractor who buys from your store on credit, in five stops that each add one line to the journey card.
Stop 1: The contractor takes paint, screws and brushes
Issue them a sales invoice for the items, each in its own unit, and record no receipt against it, so it stays on credit on their account.
Stop 2: An unopened can of paint comes back
From the invoice press Return invoice, keep only the paint line with the quantity that came back, then allocate the credit note to the invoice.
Stop 3: Cartons of screws arrive from the supplier
Record the purchase invoice in the supplier’s name by the carton, so the item’s balance in stock rises and what you owe them shows.
Stop 4: The contractor pays part of what they owe
Record what they paid with a receipt against the invoice, so the invoice becomes partially paid and the rest stays on their account.
Stop 5: They ask for their statement at the end of the month
Open the customer statement report and choose the contractor and the period, and you see the invoice, the credit note, the receipt and the balance due, then export the report to Excel or PDF.
Each plan’s scope differs, and some capabilities on this page need a higher plan, so check what fits your store with our sales team.
3. Paint and Hardware Store Accounting in Saudi Arabia: what Qoyod covers in your store
Between the counter, the store room and the supplier, many accounts pass through a paint and hardware store. Here are six jobs Qoyod covers in it.
Every item in its own unit
Every item has a unit of measure that you choose when you create it, such as the piece, the carton or the litre, and it shows on the invoice line beside the quantity, so choose it right from the start, because it does not change once the item is on an invoice. If you buy an item by the carton and sell it by the piece, add the carton in unit conversion, depending on your subscription: one carton equals a number of pieces, and each unit has a purchase price and a selling price that you set yourself, so both units show on the invoice. Stored items are also available depending on your subscription.
Credit sales and the statement
Issue the contractor a sales invoice with no receipt and it stays on credit, and record each payment with a receipt against the invoice so it becomes paid or partially paid. In the customer statement report you choose the contractor and the period, and you see each document’s type, the debit amount, the credit amount and the balance due, and you export it to Excel or PDF. You compare your receivables across periods in the customer ageing report, depending on your subscription.
What came back from the job
From the invoice press Return invoice, and a credit note is created with its details; then delete the lines that did not come back and change the quantity to what actually came back. The customer’s balance falls by the value of the note, the original invoice is kept, not deleted, and “Returned” shows beside its status. If the item is stored, its quantity goes back into stock, and stored items are available depending on your subscription.
The supplier’s invoices and balance
Record the purchase invoice in the name of your paint or tools supplier, and pay what you owe in full or in parts from Supplier vouchers, depending on your subscription. Follow each supplier’s balance in their statement, and what is left for your suppliers in the supplier ageing report, depending on your subscription.
The count and damaged stock
In Products and costs open Inventory count, depending on your subscription, and press Create inventory count, choose the location, then enter the actual quantity of each item, and the current quantity and the difference between them show. You choose an account for surplus quantities and an account for shortages, such as an account for damaged goods that you add first in the chart of accounts, and you can count your inventory with an Excel file instead of entering by hand, depending on your subscription. The product cost and margin report shows, for each item, the available quantity and the average unit cost, and it needs purchases and stock switched on.
The contractor’s price and discounts
Qoyod does not support a price list for each customer, so if you agree a price with a contractor other than the default selling price, you change the unit price on the invoice line. You can add a discount to the line as a percentage or an amount, and set the maximum discount percentage for each user in the users settings; more than one user is available depending on your subscription.
4. Paint and hardware store invoices and the Zakat, Tax and Customs Authority
A homeowner, or a contractor with a VAT number?
Qoyod sets the type of invoice from the customer’s VAT number, not from the invoice amount or its tax rate.
- For a customer with no VAT number, such as a homeowner buying a can of paint: a simplified tax invoice that you hand over, and in Phase 2 it is reported to the Authority within 24 hours of issue, depending on your subscription.
- For a contractor or a company with a VAT number: Qoyod issues a tax invoice that the Authority clears first, before it reaches the customer, and Phase 2 linkage with the Authority is available depending on your subscription.
Tax on the line and on the return
Every item has its default tax, chosen from the taxes defined for your business; it shows on the invoice line and can be changed there, and you can enter the price including tax with the Inclusive option. The standard rate of VAT in the Kingdom is 15%. When you issue a credit note for a can that came back, its entry reverses the tax on its lines. At the end of the period, the VAT return form report collects your figures, and you submit the return yourself through the Authority’s portal.
Phase 2 linkage with the Authority is available depending on your subscription, so ask sales about it.
5. What you follow in a paint and hardware store, and what your accountant reviews
If your store works with an accountant or an accounting firm, they read in Qoyod the same numbers you follow from behind the counter.
What you follow
- What each contractor still owes, in the customer statement report.
- The credit notes for goods that came back.
- What you owe each supplier, depending on your subscription.
- The available quantity of each item and the count difference, depending on your subscription.
What your accountant reviews
- Sales invoices, credit notes and receipts, and purchase invoices depending on your subscription.
- Income statement, balance sheet and trial balance, and customer ageing depending on your subscription.
- The VAT return form report at the end of each period.
- Report exports to Excel and PDF.
Add your accountant as a user with the role and permissions you set, depending on the number of users in your subscription.
6. Other Qoyod products
You keep the store’s books in Qoyod Accounting. For your salespeople and workers there is another Qoyod product: Qoyod HR, on its own subscription.
Qoyod HR
For a paint and hardware store with salespeople and workers in more than one branch.
Qoyod HR is a Saudi HR system, and the connection to Qoyod Accounting is now available.
- Payroll with earnings, allowances, deductions and advances, and the WPS file ready from the payroll run itself.
- Attendance across your branches, with late hours and overtime carried into the payroll.
- Every document in the employee file, such as the iqama and the contract, with its expiry date and an alert before it.
7. Frequently asked questions
Which invoice do I issue to a homeowner, and which to a contractor with a VAT number?
Qoyod sets the type of invoice from the customer’s VAT number: a homeowner with no VAT number gets a simplified tax invoice, reported to the Authority within 24 hours of issue, and a contractor or company with a VAT number gets a tax invoice that the Authority clears before it reaches the customer; Phase 2 linkage with the Authority is available depending on your subscription.
How do I sell the same item by the carton and by the piece?
In Products and costs press Edit beside the item and make the piece its base unit of measure, then go down to the Unit conversion section, depending on your subscription, and press Add more. Choose the carton, enter the number of pieces in it, and set the carton’s purchase price and selling price, which the system does not work out from the price of a piece, then save, and both units show on the invoice. If the item already has invoices, its base unit does not change, and you can add units to it in unit conversion, depending on your subscription.
How do I take a can of paint a contractor brought back off their invoice?
In Sales, open Sales invoices, press View beside the invoice, then Return invoice at the bottom of it, and a credit note is created with all its details. Delete the lines that did not come back, change the quantity to what came back, and save the note. If the invoice is unpaid, press Allocate credit note and allocate it to the invoice; if it is paid, choose Refund, and a payment voucher is created from the cash box or the bank.
Does Qoyod stop credit sales to a contractor who goes over a set amount?
Setting a credit limit for a customer is not currently available in Qoyod. What you follow is what each contractor owes in the customer statement report, which shows the debit amount, the credit amount and the balance due for each document, and customer debts across periods in the customer ageing report, depending on your subscription.
Does the free trial include stock and unit conversion?
No. The free trial starts with products and services, sales invoices, customer receipts, credit notes and the customer statement report, and it does not include stored items, unit conversion, inventory counts, suppliers, purchase invoices or supplier vouchers, the customer ageing report, the supplier ageing report, more than one user, or Phase 2 linkage with the Authority. Each plan’s scope differs, so check what fits your store with our sales team.
Does Qoyod work out colour-mixing formulas in a paint store?
Qoyod is accounting software, and what this page shows is sales invoices, credit notes, receipts and the customer statement, plus stored items, unit conversion, inventory counts, purchases and supplier balances depending on your subscription. Colour-mixing formulas and their machines are not shown here, so ask sales what fits your store.
That brings a paint and hardware store’s numbers together in one place: what it sold to each contractor, what came back, and what is left on every account.
