Create and manage purchase invoices

To help you keep track of how much you owe your suppliers, you can enter purchase invoices. To enter purchase invoices, you must first enter a contact record for each supplier. You can do this before entering your first purchase invoice or use the Add a supplier option in the Supplier field when you enter the invoice.

If you regularly purchase the same product or service from a supplier, you can create a product record for the item. This saves you time on data entry and, if you enter a product as a stock item, Accounting will record each time stock items are bought and sold. When you enter a purchase invoice that includes a stock item, Accounting creates a Goods In transaction that automatically increases your stock level for the item.

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 following information:
Supplier *  Enter the supplier name. As you type, a list of suppliers appears. Choose a supplier or you can click Add a supplier to enter a new one.
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 payment terms, the date is calculated from the default number of credit days in Record and Transaction settings. You can override this date as needed.
Supplier Reference Optionally, enter a reference from your supplier. For example, their invoice number. This reference will not show on the Supplier Payment or Purchase Invoices lists. To include a reference that shows on these lists, use the Reference field.
Reference Optionally, enter an additional reference. For example, a purchase order number.

* These details are compulsory.

  • 4. 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.
  • 5. Enter the following information for each line item you add to the invoice:
Description *  By default, Accounting populates this field with the product or service description if you selected an item in the Product/Service field. If you didn’t select an item, enter a description for the purchase.
Ledger Account * Choose the nominal ledger account for the item.
Qty/Hrs. * Enter the number of items purchased.
Price/Rate * Enter the price of the product or rate of the service.
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 that you have selected a VAT scheme in 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 created analysis types, click the double chevrons to the right of the Total field for each line item and choose an analysis type.
  • 7. If the invoice is for goods or services purchased from a VAT registered supplier in the EU, click the double chevrons and choose whether this 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, 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.

  • 9. Optionally, enter notes for the purchase in the Notes field.
  • 10. 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.

  • 11. 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. Got 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.