Purchase Invoice

A Purchase Invoice is a supplier's bill entered into your books, and it is the document that creates what you owe. On submit it credits Creditors for the amount payable and debits whatever you bought: an expense head for services, a fixed asset account for equipment, or Stock Received But Not Billed when a Purchase Receipt already brought goods in. Input VAT on the bill debits VAT Receivable, which the VAT return nets against VAT Payable, and a Tax Withholding Category on the supplier credits TDS Payable for the tax you must deposit with the IRD instead of paying the supplier. A debit note is the same document with Is Return ticked and posts the mirror image.

Amount payable = Net total + VAT Receivable - TDS withheld; Rs 50,000 + Rs 6,500 - Rs 5,000 = Rs 51,500

1. 01Go to Invoicing > Purchase Invoice > New.
2. 02Pick the supplier; Creditors - YFF, the Tax Withholding Category and payment terms fill from the Supplier.
3. 03Enter the supplier's bill number and bill date, and set the posting date.
4. 04Add item rows with quantity and rate; set the Expense Head or asset account on each row.
5. 05In Purchase Taxes and Charges pick VAT 13% - YFF so input VAT goes to VAT Receivable (1241).
6. 06Tick Apply Tax Withholding Amount if TDS applies; the TDS row appears in the taxes table.
7. 07Save and Submit. The entry below posts, Creditors shows the net payable and the bill locks.
8. 08Click Create > Payment to pay, or Create > Return for a debit note against this bill.

Create from Accounts > Purchase Invoice or from a Purchase Order or Receipt. Submitted invoices lock and cannot be deleted, cancel and amend instead.

ACC-PINV-2026-00004, Rs 40,000 of office chairs and a table from Market mind investment group, still unpaid and Overdue.