Create and manage purchase invoices

When you receive invoices from suppliers, you can record these to help you keep track of how much you owe them and any outstanding values. Before you record the invoice, you need to create a contact record for the supplier.

To record a purchase invoice

  • 1. Expenses > Purchase Invoices > Record Invoice.
  • 2. Enter the following information:
Name * To search for a supplier, enter the supplier name > choose the contact from the list. To add a new supplier, click the create contact button, > enter the relevant information > Save.
Invoice Date * Enter the invoice date.
Due Date Enter the date the invoice is due to be paid.

Tip: If you entered supplier credit terms in Settings > Invoice Settings, the due date calculates automatically. You can overwrite this if required.
Reference If required, enter a reference, for example, a purchase order number.
Description * Enter a description of the products or services purchased from the supplier, for example office equipment.
Type of Expense Choose a category for the expense, for example Office costs.
Qty Enter the quantity of items purchased.
Unit Price Enter the net value of the item.
VAT Rate * Choose the relevant VAT rate.

Tip: If you don’t have the option to choose a VAT rate, check you’ve entered your VAT scheme correctly in Settings > Financial Settings.
VAT Amount This calculates automatically based on the quantity, unit price and VAT rate. You can overwrite this if required.
Total This is the total gross value of the goods.

* These details are compulsory.

  • 3. If you’ve purchased more then one type of item from this supplier, enter these on the next available lines.

To record a discount on an invoice, create a new item line with the description of discount. Enter the same information as the item you’ve purchased and in the Unit Price field, enter the amount as a negative value. The VAT and total amounts for this item line calculate as negative values and reduce the overall total of the invoice.

  • 4. If required, enter any notes for this purchase > Save.

The invoice appears on the list ready to be paid when you make the payment to your supplier.

To record a VAT only invoice

There may be times when your supplier sends you a VAT only invoice. To record this, follow the steps below:

  • 1. Expenses > Purchase Invoices > Record Invoice.
  • 2. Enter the contact details and invoice dates. For more information see the section above.
  • 3. Enter a description, for example, VAT only or VAT adjustment > choose the type of expense > leave the quantity and unit price as 0.00.
  • 4. Choose the VAT rate > enter the VAT amount > enter any notes > Save.

To make sure the transaction is picked up on the VAT return, you must choose a VAT rate.

You’ve successfully entered the VAT only invoice and it appears on the purchase invoice list.

To edit a purchase invoice

You can’t edit an invoice that’s been paid or included on a VAT Return. For more information, please see our Edit a purchase invoice article.

To edit an unpaid non-VAT reconciled invoice:

Expenses > Purchase Invoices > click the relevant invoice > Manage Invoice > Edit > amend the details as required > Save.