Guide Categories
Purchase Invoices
Record and manage invoices received from suppliers to track your accounts payable.
Overview
The Purchase Invoices tab allows users to record and manage invoices received from suppliers. Recording a purchase invoice automatically increases the balance owed to the supplier under the Accounts Payable account.
Creating a Purchase Invoice
To create a new purchase invoice:
- Navigate to the Purchase Invoices tab
- Click the New Purchase Invoice button
- Select the supplier from whom you received the invoice
- Enter the invoice details including date, reference, and line items
- Review and save the invoice
Note
When you create a purchase invoice, it automatically updates your accounts payable balance and inventory levels (if applicable).
Key Information Fields
Purchase invoices contain essential information for expense tracking:
| Field | Description |
|---|---|
| Date | Invoice date from the supplier |
| Reference | Supplier's invoice number or reference |
| Supplier | The supplier who issued the invoice |
| Amount | Total amount including taxes |
| Status | Payment status (Unpaid, Paid, Partially Paid) |
Inventory Impact
When purchase invoices include inventory items, they automatically:
- Increase inventory quantities for the received items
- Update the average cost of inventory items
- Reflect the cost in your cost of goods sold when items are sold
- Maintain accurate inventory valuation for reporting
Payment Processing
After recording purchase invoices, you can process payments to suppliers:
- Navigate to the Payments tab to record supplier payments
- Select the purchase invoices to be paid
- Process full or partial payments as needed
- Track payment schedules and due dates
Best Practices
- Record purchase invoices promptly when received
- Verify invoice details against purchase orders or delivery receipts
- Use consistent coding for expense categories
- Keep digital copies of supplier invoices for reference
- Review aging reports regularly to manage cash flow
- Take advantage of early payment discounts when beneficial
- Reconcile supplier statements with your purchase invoice records