Purchase Invoice

A Purchase Invoice represents a bill received from a supplier. Submitting a purchase invoice accrues expenses and creates a payable entry.

To create a purchase invoice:

1. Go to Home → Accounting → Accounts Payable → Purchase Invoice and click New.
2. Select the Supplier; default address and payment terms will be loaded.
3. Set the Posting Date and Due Date.
4. Add items and quantities; rates and taxes are fetched from the supplier’s price list.
5. Save and Submit to record the liability. The invoice status will change from Draft to Submitted. If you tick Is Paid, a payment entry will be created automatically.
6. To record a return to a supplier, tick Is Return (Debit Note) and link the original purchase invoice.

The following process flow diagram shows the typical purchasing process: Material Request → Purchase Order → Purchase Receipt → Purchase Invoice → Payment Entry. You can hold or block a purchase invoice using the Hold Invoice button if there are issues such as quality inspection failures or credit limits.