Create and manage purchase invoices

Enter purchase invoices to keep track of what you owe your suppliers. In order to enter purchase invoices, you must first create a contact record for each supplier. Alternatively, you can add a supplier when you enter the purchase invoice using the Add a Supplier option.

You can create a product record if you regularly purchase the same product or service from the same supplier. As a result, you save time on data entry. Accounting will keep track of when a stock item is purchased and sold if you enter it as a stock item. Accounting creates a Goods In transaction when you enter a purchase invoice that includes a stock item, automatically increasing its stock level.

If you'd like to create a CIS purchase invoice you can find out more here.

To create a purchase invoice

  1. Go to Purchases and then click Purchase Invoices.
  2. Click New Invoice to open the New Purchase Invoice page.
  3. Enter the purchase invoice information, fields marked with a * are compulsory.
  1. To add the purchase of a product or service to the invoice, enter the name of the item in the Product/Service field or select the item on the list. You can also click Create item to add a new item. To add more items, repeat this step on the next invoice line.
  2. Enter the information for each line item you add to the invoice. Fields marked with a * are compulsory.
  1. If the invoice is for the purchase of goods for resale, select the ellipsis and select the Resale check box.

  2. If you created analysis types, select the ellipsis to the right of the Total field for each line item and choose an analysis type.
  3. If the invoice is for goods or services purchased from a VAT registered supplier in the EU, select EU Goods/Services and choose whether this item is goods and related services or a stand-alone service.
  4. To add more transactions, on the next line, repeat the step above.
If you want to save this invoice as a draft, select the Save as draft check box at the bottom left. When you are ready to update or send the invoice later, simply open the draft, make changes, and then clear the Save as draft check box.
  1. Optionally, enter notes for the purchase in the Notes field.
  2. If you want to attach a file such as a copy of a receipt or a purchase order, click Attachment and then Upload files and then browse to the file.
The overall net amount of the invoice and VAT total appear at the bottom of the invoice. To view a breakdown of the VAT calculated, click View VAT Analysis.
  1. Click Save.

You have successfully entered the details of your purchase invoice and it appears on the supplier’s activity. If required, you manage the invoice from the Purchase Invoices list.

To create a VAT only purchase invoice

You may need to enter a VAT only invoice, for example, if you have to pay import VAT. To do this, follow the steps below.

  1. Go to Purchases and then click Purchase Invoices.
  2. Click New Invoice.
  3. Enter the supplier details and invoice dates.
  4. Enter a description (for example, VAT only or VAT adjustment) and then choose a nominal ledger account. To create a VAT only invoice, you must choose a nominal ledger account. However, the value of the invoice only posts to the Trade Creditors and VAT on Purchases ledger accounts.
  5. Leave the Qty/Hrs and Price/Rate fields set to 0.00.
  6. Choose a rate in the VAT Rate field and then the amount in the VAT Amount field. To make sure the transaction is picked up on the VAT return, you must choose a VAT rate.
  7. Optionally, enter notes in the Notes field and then click Save.

You’ve successfully entered the VAT only purchase invoice and displays on the Purchase Invoices list.

To view payments and allocations

The Payments and Allocations window shows which payments have paid off your purchase invoices, as well as which invoices and credit notes have been allocated together.

  1. Go to Purchases and then Purchase Invoices.
  2. Locate and then click the purchase invoice you want to view payments and allocations for in the list.
  3. Click the value in under Amount Paid to open the Payments and Allocations window. To view additional details about a transaction, click a value in the Amount column.

Managing purchase invoices

After creating purchase invoices, go to Purchases and then Purchase Invoices to view and manage your purchase invoices. You can edit or void purchase invoices with unpaid balances, as long as it hasn’t been credited or included on a VAT Return. You can also record a payment, create a credit note, or set an invoice as disputed.

If you dispute an invoice, the values remain in your accounts. To clear the Disputed status, open the purchase invoice and click More and then Clear Dispute.

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