Purchase invoices are the method by which sales invoices received from suppliers are entered into Manager. They increase the balance of the supplier’s subaccount in Accounts payable and, therefore, are used when buying on credit. They can also be used to maintain a record of transactions with a supplier. They do not, however, record payment of money, which must be handled by a second transaction, even if the supplier is paid upon delivery. In a double-entry accounting system like Manager, they also post expenses to appropriate accounts and record additions to inventory.
To enable the Purchase Invoices tab, click Customize below the left navigation pane, check the box for Purchase Invoices, and click Update below the list:
Manager offers six methods for creating purchase invoices:
In the Purchase Invoices tab, click on New Purchase Invoice:
Complete the form:
By default, the
Invoice date field is prepopulated with today’s date.
Due date can be entered from the supplier’s invoice. The date can be entered as By a certain date or Net in days:
If a date is not entered, Manager will automatically use the
Invoice date as the
Invoice number can be the supplier’s sales invoice number or an internally assigned reference. If the box within the field is checked, Manager will automatically assign a sequence number. The program will find the highest number among all existing purchase invoices and add 1.
If automatic sequencing is used, the number assigned will be higher than any previously assigned number, including suppliers’ numbers. Therefore, best practice is to use either all suppliers’ numbers or all automatic numbers.
Order number field can be used to record your own purchase order number, if you issued one.
A previously defined
Supplier must be selected in the dropdown box.
Description of the invoice can be entered.
If inventory locations have been defined and the Goods Receipts tab is not enabled, a field for
Inventory location appears below the
Description field when the first inventory item is added to the purchase invoice:
Purchased inventory items are then assumed to be immediately available at the designated inventory location. However, if Goods Receipts is enabled, the field does not appear, and assignment of purchased inventory items to inventory locations occurs via the goods receipt.
Line items can be completed semi-automatically by selecting predefined inventory or non-inventory items in the
Item field. If they are,
Unit price will fill automatically.
Enter quantity in the
Tax codes can be selected.
Tracking code can be selected.
Additional lines can be added 1, 5, 10, or 20 at a time.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
Discountwas applied. When checked, further options of Percentage or Exact amount discounts appear.
Amounts are tax inclusive. If this box is checked, tax amounts are deducted from the unit price; otherwise they are added.
Custom themecan be selected if any are enabled.
Click Create to generate the finished purchase invoice. (Note that in the illustration below, no discount has been applied.):
The transaction is now listed in the Purchase Invoices tab:
It can also be located by drilling down in the Suppliers tab and clicking on the number of invoices for a particular supplier:
For a repeat purchase, an existing purchase invoice can be duplicated by cloning. While viewing the existing purchase invoice, click Clone:
If a purchase order was issued from Manager and the supplier’s sales invoice matches it, a corresponding purchase invoice can be created directly from the existing purchase order. This eliminates the need to enter information a second time. While viewing the purchase order, select New Purchase Invoice in the Copy to dropdown box:
The resulting purchase invoice can be edited, if necessary, in case of differences from the purchase order.
If a customer was given a sales quote for items that now have been provided by a supplier, the supplier’s sales invoice may closely match the sales quote. A purchase invoice can be created directly from the sales quote without re-entering information. When viewing the sales quote, select New Purchase Invoice from the Copy to dropdown box:
A purchase invoice entry screen appears. After the actual supplier is selected, a purchase invoice is created, carrying forward relevant information.
If an internal sales order was created in response to a customer’s order, but items to fulfill it were purchased from outside suppliers, a purchase invoice representing the supplier’s sales invoice can be created directly from the sales order. This is useful when no purchase order was created in Manager. (If one was, create the purchase invoice from the purchase order, as described above.)
Exactly as when creating a purchase invoice from a sales quote, select New Purchase Invoice from the Copy to dropdown box:
Another method for creating a purchase invoice is from your own customer sales invoice. This option might be useful when a business keeps records of goods and services from a supplier and does not require a sales invoice from the supplier. Instead, the business assumes it must pay its supplier for what it has invoiced its customer.
Again, select New Purchase Invoice from the Copy to dropdown box on the sales invoice:
A final method is from a goods receipt. This method can be helpful when suppliers send merchandise for inspection prior to issuing an invoice or automatically replenish stock based on contractual terms.
As with other methods, select New Purchase Invoice from the Copy to dropdown box on the goods receipt: