# 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.


[![](https://guides.smurps.com/uploads/images/gallery/2025-12/scaled-1680-/image-1764987005591.png)](https://guides.smurps.com/uploads/images/gallery/2025-12/image-1764987005591.png)

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.

[![](https://guides.smurps.com/uploads/images/gallery/2025-12/scaled-1680-/image-1764987042034.png)](https://guides.smurps.com/uploads/images/gallery/2025-12/image-1764987042034.png)