Create and manage purchase invoices

To help you keep track of how much you owe your suppliers and any outstanding values, when you receive an invoice from them, you can record this in Sage One. Before you can record the invoice, if you haven’t already done so, you need to create a record for the supplier.

If you regularly purchase the same products from a supplier, to save time when entering invoices, you can create a product record.

Important note about recording purchase invoices for stock items

Sage One tracks your stock by recording stock movements each time stock is bought and sold. Each stock movement has a type which records whether stock was added or removed. So whenever you record a purchase invoice in Sage One that includes a stock item, a Goods in transaction is tracked and Sage One automatically increases your stock levels for this item.

To record a purchase invoice

  • 1. Purchases > Purchase Invoices > New Invoice.
  • 2. Enter the following information:
Name *  Enter the supplier name. As you type, a list of suppliers appears > choose the supplier from the list.
Tip: To add a new supplier, click the [Search for supplier] drop-down > Add a supplier > enter the relevant information > Save.
Invoice Date * Enter the invoice date.
Due Date * This date automatically calculates from the payment terms entered in the supplier’s record. If you haven’t entered any custom payment terms, it calculates based on the default number of credit days in Settings > Default Settings. If required, you can overwrite this date.
Supplier Reference If required, enter a reference from your supplier, for example, their invoice number.
Note: This doesn’t appear in your Supplier Payment or Purchase Invoices list. For a reference to show in these, use the Reference field.
Reference If required, enter an additional reference, for example, a purchase order number.

* These details are compulsory.

  • 3. To record the purchase of a specific product, type the name of the product > choose the relevant product.

The information for the chosen product appears on the next available invoice line. If necessary, you can change this information. If you need to create a new product record, click Add product > enter the relevant information > Save.

  • 4. To add more products to your invoice, repeat the step above.
  • 5. If you don’t want to add a product to the invoice, enter the following information:
Description *  The description for the purchase.
Ledger Account * Choose the nominal code for your purchase.
Item Code If necessary, enter a code, for example a part number or stock code.
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 your business is VAT registered and 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.
Total This is the total gross value of this item line.

* These details are compulsory.

  • 6. If you’ve created transaction analysis types, for example departments, click the double chevrons > choose the relevant analysis category.
  • 7. If the invoice is for goods or services purchased from a VAT registered supplier in the EU, click the double chevrons > choose whether this is item is goods and related services or a stand-alone service.
  • 8. To add more transactions, on the next line, repeat the step above.

If you want to save this invoice as a draft, for example, because you’re not ready to update the ledgers yet, select the Save as draft check box. When you’re ready to update the ledgers, simply open the draft invoice, make any changes as necessary and clear the Save as draft check box.

  • 9. If required, enter any notes for this purchase.
  • 10. If you want to attach a file, for example a copy of a receipt or a purchase order a supplier has sent you, click the attachment button > Upload files > browse to and double-click the file. Find out more about attachments >>

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 Total VAT, then to return to the invoice, close the VAT Analysis window.

  • 11. Click Save.

You’ve 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 list.

To record 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. Purchases > New Invoice.
  • 2. Enter the supplier details and invoice dates. For more information see the section above.
  • 3. Enter a description, for example, VAT only or VAT adjustment > choose a ledger account > leave the quantity and unit price as 0.00.

To create a VAT only invoice, you must choose a ledger account. However, the value of the invoice only posts to the Trade Creditors and VAT on Purchases ledger accounts and not the chosen ledger account.

  • 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 purchase invoice and it appears on the purchases list.

To manage an existing invoice

  • Purchases > Purchase Invoices > click the required invoice.

From here you can edit the existing invoice. To do this, simply follow the steps in the earlier section To record a purchase invoice. If the invoice has already been paid, credited or included on a VAT Return, you can’t amend it. For more information, please see To edit or void a purchase invoice.

You can also record a payment against the invoice and use the Manage Invoice option to create a credit note or to set the invoice as disputed.

If you dispute an invoice, the values remain in your accounts. If required you can clear the dispute status from Manage Invoice > Clear Dispute.

To view a breakdown of payments and allocations

You can easily view which payments have paid off your purchase invoices, as well as which invoices and credit notes have been allocated together.

  • 1. Locate and open the invoice or credit note from the activity section on the contact record or, from the Purchases tab.
  • 2. Click the Amount Paid value.

The Payments and Allocations option appears.

The allocation details of the transaction appears here, depending on the type of transaction you originally opened. To view further details, click the value in the Amount column.

To convert a draft invoice

  • 1. Purchases > Purchase Invoices > click the required invoice.
  • 2. Click the required draft invoice > if required, amend any details on the invoice as necessary.
  • 3. Clear the Save as draft check box > Save.

The draft invoice is now converted to an invoice and the value appears on the relevant nominal ledger accounts.

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