Record purchase invoices

Applies to:     Office Accounting Express, Office Accounting Professional

The purchase invoice is an invoice from the supplier to your company. It can contain products (stock or non-stock products), but it can also be a purchase invoice for services, such as utilities.

sample purchase invoice

Sample Purchase Invoice form

The purchase invoice is similar to the invoice. However, it only contains one address—the address where you want to send the payment for the purchase invoice.

Note the following about a purchase invoice:

  • A purchase invoice can be created either from a blank template or from a purchase order or goods received note.

  • Purchase invoices can contain product or expense lines (as well as comment lines).

  • If a purchase invoice is created from a goods received note, the goods received note is voided and replaced by the purchase invoice.

  • The purchase invoice is a financial posting document and posts to the purchase ledger (and stock asset account if applicable).

  • The purchase invoice cannot be printed and sent. It is received from the supplier.

  • Similar to the invoice, the payment terms on the purchase invoice define the due date and the early payment discount (and corresponding VAT reduction) of the purchase invoice.

  • Purchase invoices are paid using the Pay Purchase Invoices form.

Purchase invoice postings

The purchase invoice updates the purchase ledger and stock (when applicable) the moment it is saved.

The purchase invoice will:

  • Debit the expense account with the amounts on the lines.

  • Debit the purchase/input VAT account with the VAT.

  • Credit the purchase ledger account with the total on the purchase invoice.

If the purchase invoice contains stock products (available in Office Accounting Professional and Office Accounting Professional Plus), the purchase invoice will:

  • Debit the stock asset account with the quantity and cost of the products.

  • Debit the purchase/input VAT account with the VAT.

  • Credit the purchase ledger account with the total on the purchase invoice.

  • Void the goods received note (including the postings to pending goods received notes) if the purchase invoice was created from a goods received note.

The purchase invoice thus creates postings with the actual amounts on the purchase invoices, because these could differ from the amounts on the goods received note. This results in a recalculation of cost of sales if the product has been resold on an invoice.

The audit trail for the sample Purchase Invoice form is shown in the following figure.

audit trail

Share Facebook Facebook Twitter Twitter Email Email

Was this information helpful?

Great! Any other feedback?

How can we improve it?

Thank you for your feedback!