A Purchase Invoice records a bill received from a supplier for goods or services provided to your business.
Purchase invoices are essential for tracking what you owe to suppliers and managing your accounts payable.
To create a purchase invoice, enter the details from the invoice you received from your supplier.
The form contains the following fields:
Enter the date shown on the supplier's invoice.
This date determines when the expense is recognized in your accounting records.
The issue date is used to calculate payment due dates based on supplier payment terms.
Select payment terms to determine when this invoice must be paid.
Choose Immediate for invoices requiring immediate payment.
Choose Net to specify payment due after a number of days.
Choose By to set a specific date for payment.
Enter the invoice number or reference from your supplier's invoice.
This reference helps match payments to invoices and resolve supplier queries.
Each supplier invoice should have a unique reference to avoid duplicates.
Select the Supplier who issued this invoice.
The supplier selection determines payment terms and account categorization.
Create new suppliers under the Suppliers tab before entering invoices.
Supplier currency settings determine if this is a foreign currency invoice.
Link this invoice to a Purchase Quote if it originated from a quote.
Linking helps track the procurement process from quote to invoice.
Quote details can be copied to the invoice to ensure pricing consistency.
Link this invoice to a Purchase Order if fulfilling an order.
Linking ensures all purchase orders are properly matched to invoices.
Order details and items can be copied to verify invoice accuracy.
The system tracks which orders have been partially or fully invoiced.
Enter the Exchange rate when the supplier uses a foreign currency.
This field appears when the selected supplier's currency differs from your base currency.
The exchange rate converts foreign currency amounts to base currency for reporting.
Configure automatic exchange rates under Settings → Exchange Rates.
Enter an optional description for this purchase invoice.
Use this field for general notes about the purchase or delivery details.
Descriptions help identify the invoice purpose when reviewing transactions.
Add line items to detail what you are being charged for.
Each line can represent different products, services, or expense categories.
Use multiple lines to match the supplier's invoice layout for easy reconciliation.
Line totals are automatically calculated based on quantity, price, discounts, and tax.
Choose an item, which could be either an Inventory Item or a Non-inventory Item. You also have the option to leave this field blank.
If you've previously chosen an Item, then the Account will be automatically populated based on that item.
To categorize the payment, you can choose from nearly any account in your Chart of Accounts.
For example, if you are making a payment for an expense like electricity, choose the Electricity account.
However you can also categorize payments directly into many sub-accounts.
For example, if this payment is for the purchase of a fixed asset, choose the Fixed assets, at cost account and then select the specific FixedAsset.
Enter the description of the line. This column is visible only if the Column — Description option is checked.
Enable line numbers to display sequential numbering for each invoice line.
Line numbers help when discussing specific items with suppliers.
Useful for matching invoice lines to purchase orders or delivery notes.
Enable the Description column to add detailed explanations for each line item.
Descriptions provide additional context beyond the item or account name.
Essential for services or expenses that need detailed documentation.
Enable the Discount column to record discounts received on line items.
Choose between percentage discounts or fixed amount discounts per line.
Discounts reduce the line amount before tax calculations.
Useful for volume discounts, early payment discounts, or negotiated savings.
Specify whether line item amounts include or exclude tax.
Check this box if the supplier's prices already include tax.
Leave unchecked if tax is shown separately and should be added to prices.
This must match how the supplier presents prices on their invoice.
Enable withholding tax if you must deduct tax before paying the supplier.
Withholding tax is common for services, royalties, or contractor payments.
The withheld amount is paid to tax authorities on the supplier's behalf.
Check local tax regulations for withholding requirements and rates.
Hide the balance due amount when printing or emailing this invoice.
Useful for internal copies or when payment details are handled separately.
The balance due is still tracked in the system for payment matching.
Enable the tax amount column to display calculated tax for each line.
Shows how tax is calculated line by line for verification.
Helps match tax calculations to the supplier's invoice.
Total tax is the sum of individually calculated line taxes.
Enable this option when receiving inventory items with the invoice.
This combines the purchase invoice with a goods receipt for efficiency.
Inventory quantities will be updated immediately upon invoice entry.
Select the inventory location where goods are being received.
Enable custom footers to add additional information when printing invoices.
Footers can include payment instructions, terms, or internal notes.
Create reusable footers under Settings → Footers and select them here.
Archive this invoice to remove it from active lists and dropdowns.
Archived invoices are typically fully paid or no longer relevant.
The invoice remains in the system for reporting and audit purposes.
You can still view archived invoices through search or reports.