New Purchase Direct Invoice

A Purchase Invoice (also known as a Purchase Bill) is a formal document received from a supplier that outlines the items provided, quantities, agreed prices, and taxes. Recording a Purchase Invoice is essential for updating your inventory and establishing a financial liability in your accounts. It ensures that your records accurately reflect what is owed to your suppliers for the goods and services received.To create a new Purchase Invoice, navigate to Purchases > Click "Invoices" Tab > Click "New Direct Purchase Invoice". This process automatically synchronizes stock movement and financial entries to maintain a consistent transaction flow.
 
Supplier
A supplier must be selected to create an invoice. Choose the vendor from the dropdown list. You can search the list or view your most frequent suppliers. If the vendor is not yet in the system, click the + button to open a popup and add their details immediately.
 
Invoice Date
This represents the official financial date as printed on the supplier's physical bill. This date is critical because it determines the accounting period in which the expense and tax credits are recognized.
 
Current Debit
The Current Debit field displays the real-time financial balance between your business and the selected supplier. This value indicates the net amount you currently owe the supplier or, in cases of overpayment or returns, the amount the supplier may owe you. A negative value indicates the amount the supplier owes you, while a positive value indicates the amount you owe the supplier. The amount is displayed as a clickable link; by clicking on it, the user can view a detailed history of all previous transactions, payments, and outstanding balances associated with that specific supplier.
 
Barcode
For faster data entry, the Barcode field allows you to scan an item’s barcode to automatically add it to the invoice. This feature reduces manual typing and is especially useful for high-volume receiving. To enable this: Go to Setup -> Preferences -> Use Barcode Functionality.
 
Reference
In the ERP system, the Reference field is used to uniquely identify each transaction, such as a Purchase Order, GRN, or Purchase Invoice. This is our unique reference for every transaction. The system allows the user to customize the reference number format as per your business requirement. User can define and modify the serial pattern in: Setup -> Transaction Reference The reference value can also be edited and changed without affecting the format, giving the user flexibility while maintaining consistency in your numbering pattern.
 
Workorder
If the purchase is specifically for a production or service job, you can select the relevant Workorder here. This links the material costs directly to the specific internal job for better project tracking.
 
Tax Included (Toggle)
This setting determines how the system interprets the prices you enter. If set to Yes, the entered price is treated as the final cost including tax. If set to No, the system will calculate and add the tax on top of your entered unit price.
 
Due Date
The Due Date is automatically calculated based on the Payment Terms assigned to the supplier. While it provides a suggested deadline for payment, you can manually adjust this date if you have reached a specific agreement with the vendor.
 
Supplier's Reference
Enter the physical invoice number provided by the supplier. Recording this is vital for future reconciliation and for communicating with the vendor regarding specific payments.
 
Branch
Select the business branch or location responsible for this purchase. This ensures that the financial data and stock updates are categorized under the correct organizational unit.
 
Department
Assign the purchase to a specific internal department (e.g., Sales, IT, or Operations). This allows for detailed departmental expense reporting and budget monitoring.
 
Attachments
User can attach documents or images related to the transaction. Click the attachment icon or browse option in the delivery form to upload files. These are saved with the delivery for future reference.
 
Receive Into
This field specifies the warehouse or storage point where the physical goods are being received. Selecting the correct location ensures your Quantity On Hand (QOH) is updated in the right place.
 
Deliver To
Use this field to record the name of the person/station that received the goods. This provides an audit trail for where the items were moved within your facility.
 
Line Items (Order Items)
The Order Items section is where you record the details of the products purchased:
  • Item Description: Select the product from the dropdown. You can add new items or edit the current description using the + and pencil icons.
  • Batch No & Exp Date: Essential for tracking perishable or medical goods. If enabled in Setup, you can enter the manufacturer's batch number and expiry date here.
  • Quantity & Units: Input the amount being purchased and select the relevant unit of measure.
  • Price Input: Enter the cost per unit. Use the P button to view the Purchase History for this item to ensure you are being billed the correct agreed price. Prices are displayed as:
    • Price After Tax: If the invoice is set to tax-included.
    • Price Before Tax: If the invoice is set to tax-excluded.
  • Discount: Apply any line-level discount percentage provided by the supplier.
  • Item Tax Type: Select the tax rate applicable to the item (e.g., VAT 15% or GST 5%).
  • Line Total: The system automatically calculates the final row total after tax and discounts.
  • Add Button: Click the Add button to finalize the item and move it into the purchase order table.
  • Edit Icon: After adding a line item, if a user needs to change any information, they can click the Edit pencil icon at the end of the row.
    • Confirm Changes (Check mark Icon): Click this button to save your modifications, such as updated quantities or prices.
    • Cancel Changes (Cancel Icon): Click this button to discard any unsaved changes and revert the line to its previous state.
  • Remove Icon: To remove an item from the order, simply click the X (Delete) icon displayed at the end of the respective row.
   
GL Items for this Invoice
The GL Items section is a specialized area used to record non-inventory expenses or services directly onto a purchase invoice. Unlike the "Order Items" section, which tracks physical stock movement, GL Items are used for costs that do not have a physical quantity or warehouse location, such as professional fees, electricity bills, or maintenance services. This ensures that all costs associated with a purchase are captured in your financial records, even if they aren't physical products.
Quick Entry for GL Items
To speed up the process, you can use the Quick Entry dropdown located just above the GL table. This allows you to select a pre-defined expense category. Simply select the category, enter the Amount in the adjacent box, and click the Go button. The system will automatically populate the corresponding General Ledger account and amount into the table below.
Detailed Field Explanation
Within the GL Items table, you can manually define each expense row:
  • Account Name: Select the specific expense account from your Chart of Accounts. This tells the system exactly where to record this cost in your financial reports. If you need to add a new ledger account, click the + icon next to the dropdown.
  • Description: This text field allows you to provide specific details about the expense (e.g., "Monthly office internet for March"). This description will appear in your ledger reports for better audit tracking.
  • Tax Type: Choose the appropriate tax rate for the service. If the service is not taxable, select No Tax. The system will calculate the tax amount based on this selection and add it to the final invoice total.
  • Price: Enter the net cost of the service or expense. Here the tax is applied.
  • Add Button: Once all details for the row are entered, click Add to finalize the entry and include it in the GL Items total.
  • Edit Icon: After adding a GL, if a user needs to change any information, they can click the Edit pencil icon at the end of the row.
    • Confirm Changes (Check mark Icon): Click this button to save your modifications, such as updated quantities or prices.
    • Cancel Changes (Cancel Icon): Click this button to discard any unsaved changes and revert the line to its previous state.
  • Remove Icon: To remove an item from the order, simply click the X (Delete) icon displayed at the end of the respective row.
 
Quick Entry for GL Items
The Quick Entry feature allows you to create templates for recurring transactions, significantly speeding up data entry for common expenses. You can access and manage these templates by navigating to: Setup -> Quick Entries (found under the General Ledger section). When creating a new Quick Entry, if you select Supplier Invoice/Debit as the Entry Type, that specific template will become available for selection in the Quick Entry dropdown menu on your Purchase Invoice screen. 
This is particularly useful for standard monthly costs like utility bills or professional services. To use a pre-defined template on an invoice: Simply select the category from the Quick Entry dropdown, enter the Amount, and click the Go button. The system will automatically populate the account, description, and tax settings based on your setup.

Total Details
The footer provides the financial summary of the invoice:
  • Sub-total: Sum of all items and GL expenses before additional charges.
  • Shipping Charge: Enter freight or courier costs charged by the supplier.
  • Tax Breakdown: Provides an elaborate view of the calculated taxes (e.g., SGST/CGST).
  • Discount %: Apply a global discount to the entire invoice total.
  • Round Off: Adjust the final total for rounding purposes.
  • Amount Total: The final net amount payable to the supplier.

Payment
The Payment dropdown determines the immediate financial status of the invoice upon submission. This field allows you to choose between credit terms or an instant settlement through your financial accounts.
 
  • Select a Bank or Cash Account: If you select a specific bank or cash account from this list, the system will automatically process a payment for this invoice the moment you submit the form. This instantly updates your account balance and marks the invoice as paid.
  • Delayed: If you do not wish to make an immediate payment, select the Delayed option. This treats the transaction as a credit purchase, allowing you to record the payment at a later date through the supplier payment module.
 
Comments
User can add comments to the delivery for internal notes or customer communication.
 
Action Buttons
  • Process Invoice: Finalizes the transaction, updates inventory, and creates the financial ledger entries.
  • Draft: Saves the entry as a work-in-progress without affecting your accounts or stock.
  • Cancel: Discards the invoice entirely.

Custom Fields
Custom fields allow users to create their own form inputs based on their specific business requirements. If you need to record additional data that is not available in the standard form—such as a specific "Batch Color," "Quality Certificate Number," or "Manufacturer License"—you can add these fields manually. You can create various input types, including text boxes, drop-downs, radio buttons, check boxes, date pickers, and amount boxes.
You can add custom fields to three main areas of the Purchase Invoice:
  • Form Header & Footer: For general information that applies to the entire purchase transaction.
  • Line Items (Order Items): By clicking the Add Field option located at the top center of the Order Items section, you can add inputs that appear for every individual product row.
  How to Enable and Manage Custom Fields
To use this feature, follow these steps:
  • Enable the Feature: Go to Setup -> Preferences -> Show Add Custom Field on Forms. Once enabled, the Add Field buttons will appear in the form header, line items, and footer pages.
  • Instant Addition: You can click the Add Field button directly on the Purchase Invoice form to create a new input box on the fly.
  • Permanent Management: If you want to modify, reorder, or delete custom fields permanently, navigate to the Setup -> Custom Fields page.
 
Attachments
The Attachments feature is used to link digital files directly to your purchase transaction. This is highly useful for maintaining a paperless office by attaching copies of the Supplier’s physical invoice, Delivery Notes, or Product Manuals for future reference.
To add attachments:
  • Click the Choose File button located in the center of the form.
  • Select the files you want to upload from your computer.
  • Once the invoice is processed, these files are saved and can be viewed or downloaded at any time by opening the transaction from the Purchase Invoice list.
 
General Ledger
The General Ledger (GL) is the core financial heart of your system, ensuring that every purchase transaction is recorded with accounting precision. When a Purchase Invoice is processed, the system automatically translates the document into a series of debits and credits. This keeps your balance sheet accurate, tracks your tax liabilities, and ensures your expenses are categorized correctly.

The following types of accounts are typically maintained in a Purchase Invoice:
  • Purchase / Inventory Account: This is the primary account that records the value of the physical goods received. It is Debited to show an increase in your company's assets or stock value.
  • Tax Accounts: These accounts track the taxes (such as GST, VAT, or Sales Tax) paid on your purchases. These are Debited because they represent a tax credit that your business can claim back from the government. The system provides a clear breakdown of different tax rates (e.g., Input SGST 2.5%, Input CGST 6%) applied to the transaction.
  • Shipping & Freight Account: If your supplier charges for transport or delivery, these costs are Debited here to record the additional expense incurred to get the items to your location.
  • Accounts Payable: This account tracks exactly how much you owe the supplier. It is Credited for the full amount of the invoice (including taxes and charges), representing an increase in your company's liability.
  • Discounts Received: If you received a line-level or global discount, it is Credited here. This represents a reduction in the total cost of the purchase, effectively acting as a benefit to your business.
  • Clearing Account: This temporary account is used to balance the transition between receiving goods (GRN) and receiving the final invoice. It ensures that your stock value is recognized even before the final bill is processed.
  • Exchange Variation / Rounding Account: A small adjustment account used to match total debits and credits when minor rounding differences occur, ensuring the ledger always remains perfectly balanced.
 
Related Transactions & Actions
Once a Purchase Invoice is processed, it becomes the primary document for two main follow-up actions:
  • Supplier Payment: If the invoice was marked as "Delayed," you can later record a Payment against it to clear the outstanding balance.
  • Debit Note: If you need to return items after the invoice is finalized, you can issue a Debit Note. This reduces the amount you owe to the supplier and updates your inventory or expense records accordingly.
 
Printing and Viewing Purchase Invoices
The system provides flexible options to view or print your financial records at any stage. You can generate a professional PDF of an individual Purchase Invoice directly from its specific View page. Additionally, within the Purchase Invoice Inquiry (List) page, you can quickly print any invoice by clicking the Print or PDF icon located in the action column for that specific row.
 
Purchase Invoice Report
The Purchase Invoice Report page is a specialized section designed to help users extract and analyze financial procurement data. Users can generate these reports to keep track of all billing and tax information from various vendors, ensuring that documentation is clear, professional, and consistent with business records.
  How to Access
To access this section, navigate to Reports > Purchases > Purchase Invoices. This area allows you to filter, view, and print invoice data for any specific time period.
  Report Filters
On the right side of the screen, you can use several filters to narrow down the information before generating the document:
  • Template: Choose the visual layout for the report, such as a "Standard Tax Invoice" or a "Detailed Vendor Bill."
  • Date: Select a specific date range to view invoices created during a particular week, month, or financial quarter.
  • Currency Filter: Filter the report by specific currencies if you are dealing with international suppliers.
  • Comments: Add custom notes or instructions that will appear specifically on the printed version of the report.
  • Supplier: Run a report for a single specific supplier to review your total billing history with them.
  • Orientation: Choose between Portrait (vertical) or Landscape (horizontal) layouts for your PDF.
  Customizing Purchase Invoice Templates
You can customize the look of your billing documents by navigating to the Reports Module -> Editor page (found in the top right corner).
  • Modify Existing Templates: Adjust colors, fonts, and layouts of existing invoice templates to match your company branding.
  • Create Own Templates: Design unique templates for different types of procurement needs, ensuring all necessary tax and technical details are displayed clearly.

Editing or Deleting an Invoice
When you need to change a finished invoice, the system manages the balance and restrictions as follows:
How Payments are Handled
If the invoice is already paid, you can still edit it:
  • If you lower the total: The extra money you paid becomes unallocated. It stays in the supplier’s record as a credit for you to use later.
  • If you raise the total: The original payment stays attached, but, You will need to manually do new payment or edit existing and allocate more money to cover the difference.
When Editing & Deleting is Restricted
  • Returns: If a Debit Note (return) has been made against the invoice, you cannot edit or delete it even edit and void enable in the preference. This prevents mistakes once a return is already recorded in the system.
 
Handling Payments and Returns (Allocations)
In our system, you can allocate a Payment or a Debit Note directly to an invoice to clear the balance. If a payment was already allocated to an invoice and you later perform a return (Debit Note) for an item, that specific debit amount will be unallocated from the payment to maintain proper accounting for the invoice.
If an invoice is finalized and you later return some quantities (Debit), the system allows you to pay only the remaining balance after the debit to ensure the allocation stays correct. Note: If a separate Debit Note was previously allocated to a partial amount of an invoice, you can still allocate from the invoice with the quantity; however, the user must manually unallocate the existing entry in the Debit Note Allocation section to prevent over allocation.

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