A Purchase Invoice records a supplier bill for goods or services received. Use it to update accounts payable, post inventory costs, and track supplier payments. Purchase invoices post to accounts and inventory when approved.
The Purchase Invoices list shows all supplier bills with supplier, date, amount, payment mode, and status. Use quick filters to view Default, Approved, Draft, Cancelled, Closed, or Multi Level Approval invoices. From the list you can create new invoices, use Quick for Quick Purchase / POS entry, open existing invoices, edit drafts, or delete draft invoices. When Prevent direct creation of purchase invoice is on in Purchase Settings, New and Quick are hidden — create invoices from a purchase order or receipt note instead.
List ViewList row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft, For Revisal |
| Delete | Draft, For Revisal |
| View | All statuses |
| Quick | Opens Quick Purchase / POS entry from the list. |
Creation variants
| **Variant** | **Description** |
|-------------|-----------------|
| Standard new | Full invoice entry from New or converted from an order, quotation, or receipt. |
| Quick Purchase / POS | Fast entry using the Quick button on the list for counter or POS-style purchases. |
| Opening Balance invoice | Created from Supplier Opening Balance. Limited edit and cancel options apply. |
Quick Start — Create a Purchase Invoice
1. Navigate
Go to Purchase → Purchase Invoice from the left menu.
2. Create new invoice
Click New for a standard invoice, or Quick on the list for Quick Purchase / POS entry. You can also create an invoice from an approved Purchase Quotation, Purchase Order, or Work Order.
3. Fill in details
Enter Effective Date and Bill Number.
Choose the Supplier and select Payment mode (Cash, Bank, Credit, Digital Wallet, or Prepaid).
For Cash, Bank, Digital Wallet, or Prepaid, select the Cash Account.
Enter Supplier Invoice Number and Payment Due Date when applicable.
Add item lines with Qty, Unit, and Rate.
4. Save
save — keeps the invoice as a Draft.
Save And Approve — approves and posts the invoice in one step.
Cancel — closes the form without saving.
5. After approval
Accounts payable and inventory are updated on approval.
Cash, Bank, Digital Wallet, and Prepaid invoices auto-close on approve when fully paid by the selected payment mode.
Use Payment Out for additional or credit payments.
Header Fields Reference
| **Field** | **Description** |
|-----------|-----------------|
| Effective Date * | Accounting date of the invoice. |
| Form Type | Purchase type that controls numbering, tax rules, and print layout. Required when purchase types are enabled. |
| Bill Number * | Unique invoice reference. Auto-generated when numbering is configured on the purchase type. |
| Payment mode | How the invoice is paid: Cash, Bank, Credit, Digital Wallet, or Prepaid. |
| Cash Account | Bank or cash account for Cash, Bank, Digital Wallet, or Prepaid payment modes. |
| Payment Due Date | Date payment is due. Shown for Credit and based on payment term settings. |
| Supplier Invoice Number | Supplier's own bill or invoice reference number. Can be required via Purchase invoice mandatory fields. |
| Employee In charge | Purchase employee responsible for this invoice. |
| Supplier * | Supplier issuing the bill. |
| Contact person | Supplier contact. Enabled after a supplier is selected. |
| Reference name | Optional reference label. Shown when Show field for reference name is enabled in Purchase Settings. |
| Supplier Billing Address | Auto-filled from the supplier. Read-only. |
| Supplier Shipping Address | Auto-filled from the supplier. Read-only. |
| Branch | Branch for the transaction. Shown when multi-branch is enabled. |
| Brand | Brand for brand-wise profit tracking. Shown when enabled. |
| Shipping Center | Shipping or receiving center. |
| Billing center * | Billing center for the transaction. |
| Payment Term | Supplier payment terms. Can be required when the field is shown and configured in Purchase invoice mandatory fields. |
| Delivery Term | Delivery terms for the purchase. |
| Project | Optional project link. Can be required via Purchase invoice mandatory fields when Project module is enabled. |
| Project Task | Task within the selected project. Enabled after a project is selected. |
| Job Card | Job card allocation for the invoice. Shown when job card tracking is enabled. |
| Currency / Currency Exchange Rate | Shown when multi-currency is enabled. |
| Payment Terms | Custom payment terms text. Shown when due-date option is set to custom. |
| Notes | Remarks printed on the invoice. |
| Internal Notes | Internal remarks not shown on print. |
> Many optional header and line fields are controlled by Purchase Settings (additional item line fields, discounts, charges, bill layout). Selected header fields can be made mandatory under Purchase invoice mandatory fields in Purchase Settings → Data Entry Rules.
Item Lines — ITEMS
| **Column** | **Description** |
|------------|-----------------|
| Sl.No | Line serial number. |
| Item | Item being invoiced. Required. |
| Item code, Variant, Description, HSN, Brand | Optional columns enabled in Purchase Settings. |
| Qty | Quantity invoiced. Required. |
| Unit | Unit of measure. Required. |
| Rate | Price per unit. Required. |
| Amount, Trade Discount, discounts, Taxable Amount, Taxes, Tax Amount, Total | Calculated based on tax and discount settings. |
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Finalizes and posts the invoice. | Draft |
| Edit | Opens the invoice for editing. | Draft, For Revisal |
| Delete | Permanently removes the invoice. | Draft, For Revisal |
| Clone | Creates a copy of the invoice. | All (if permitted) |
| Print | Prints the invoice. | All |
| Export | Exports the invoice to Excel. | All |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Payment Out | Records a supplier payment against the invoice. | Approved, Closed |
| Purchase Expense | Opens a Purchase Expense linked to this invoice. | Approved, Closed |
| Create Debit Note | Opens a Debit Note against this invoice. | Approved, Closed |
| Return Order | Opens a Purchase Return Order for returned goods. | Approved, Closed |
| Create Sale Invoice | Opens a Sale Invoice linked to this purchase invoice, with item lines, sale prices, and sale tax classes pre-filled from the purchase invoice. | Approved, Closed |
| Cancel | Cancels the invoice. | Approved |
| Revise Invoice | Creates a revised invoice from a cancelled invoice. | Cancelled |
| Add Job Card Allocation | Allocates invoice lines to job cards. | Approved, Closed |
| WorkFlow Request | Starts a company process linked to this invoice. Does not approve the invoice. See WorkFlow Request. | Approved, Closed |
| Create Shipment | Creates a shipment linked to this invoice. | Approved, Closed |
| Create Delivery Challan | Opens an inward Delivery Challan linked to this invoice, with the supplier and item lines pre-filled, to document goods moved against the purchase. | Approved, Closed |
| Update Serial Numbers | Updates serial numbers on inventory item lines. | Approved, Closed |
| Set Sale Price | Sets sale prices from purchase rates on item lines. | Approved, Closed |
| Add/Update Note | Adds or edits an internal note on the invoice. | All |
| Update Secondary Status | Updates a custom secondary status. | Approved, Closed |
| Master Update | Updates selected header fields without reopening the full form. See Master Update. | Approved, Closed |
| Mark As Closed | Manually closes the invoice. | Approved |
| Undo Close | Reverts a manual close. | Closed (only when manually closed) |
| Print Labels | Prints item labels from invoice lines. | Approved, Closed |
| Export Items | Exports item lines to Excel. | All |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. |
| For Revisal | Sent back for changes. Treated like Draft for edit and delete. |
| Approved | Finalized and posted. Updates accounts and inventory. |
| Closed | Invoice is closed — typically after full payment or manual close. |
| Cancelled | Invoice has been cancelled. Use Revise Invoice to create a replacement. |
| Multi Level Approval | Awaiting multi-level approval workflow. |
Posting note: Purchase Invoices post to accounts and inventory on approve. Cash, Bank, Digital Wallet, and Prepaid payment modes auto-close the invoice on approve when the full amount is settled through the selected payment mode. Credit invoices remain open until paid via Payment Out.
Master Update
Master Update lets you change selected header fields on an approved or closed invoice without editing the full document or item lines. Open the three-dot menu on the invoice and select Master Update.
| **Field** | **Can be updated?** | **Notes** |
|-----------|---------------------|-----------|
| Date * | Yes | Effective date. Cannot be set before the accounts closing date. |
| Employee In charge | Yes | |
| Payment Term | Yes | |
| Delivery Term | Yes | |
| Due Date | Yes | Payment due date. |
| Supplier Invoice Number | Yes | Supplier's bill reference. |
| Branch | Yes | Shown when multi-branch is enabled. |
| Brand | Yes | Shown when brand-wise tracking is enabled. |
| Project | Yes | |
| Job Card | Yes | Shown when job card tracking is enabled. |
| Supplier, payment mode, centers, item lines, totals | No | Edit the full invoice (Draft / For Revisal) or cancel and revise. |
Click Confirm to save changes or Cancel to close without saving.
View Tabs & Side Panels
When you open a purchase invoice in full view (not in a small modal), the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Top panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Summary | Linked documents — debit notes, return orders, receipt notes, payments, and related follow-up transactions. See Purchase Transaction Summary. |
| Supplier Info. | Quick supplier stats: recent purchases, outstanding balance, and activity for the supplier on this invoice. See Supplier Summary. |
| Journal Info | Accounting journal entries posted by this invoice. Requires journal access. See Journal Report. |
Middle panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Payments | Payment vouchers recorded against this invoice. |
| RP | Returnable packaging (RP) movement with the supplier — record In and Out quantities per RP Item on this invoice. Shown on Approved or Closed invoices when returnable packaging is enabled and you have supplier RP access. See Supplier RP. |
RP tab — returnable packaging
Use the RP tab on an approved Purchase Invoice to book returnable packaging received with the purchase.
Example: First purchase of 500 milk crates — enter In = 500 on Milk Crate, click Save and Approve. This creates a Supplier RP linked to the invoice and adds crates to RP stock at the center.
Example: Coconut oil in 10 L returnable tins — In = quantity of tins received on the invoice.
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the invoice and when. |
| Attachments | Files uploaded to this invoice. |
| Secondary Status | Custom secondary status history and updates, when secondary status is configured. |
Best Practices
Match Supplier Invoice Number to the supplier's physical bill for easier reconciliation.
Create invoices from Purchase Orders or Work Orders so quantities and rates carry forward automatically.
Use Quick on the list for fast counter purchases; use New for full invoices with all header details.
Select the correct Payment mode — Cash, Bank, Digital Wallet, and Prepaid invoices auto-close on approve when fully paid.
Use Payment Out for credit invoices and partial payments after approval.
Opening Balance invoices have limited edit and cancel options — create them carefully during initial setup.
Can I edit an approved purchase invoice?
No. Use Master Update for allowed header fields, or Cancel and Revise Invoice to create a new version.
When does a purchase invoice post to accounts and inventory?
On Approve or Save And Approve. Draft invoices do not affect stock or ledgers.
Why did my cash invoice close automatically on approve?
Invoices with Cash, Bank, Digital Wallet, or Prepaid payment mode auto-close on approve when the full amount is settled through the selected payment mode.
Can I create a purchase invoice without a purchase order?
Yes, unless Prevent direct creation of purchase invoice is enabled in Purchase Settings. When that setting is on, New and Quick are hidden and a purchase order is required (opening-balance invoices are exempt). Otherwise use New or Quick for a standalone invoice, or convert from a Purchase Quotation.
What is an Opening Balance invoice?
An invoice created from Supplier Opening Balance to bring forward supplier balances from a prior period. It has limited edit and cancel options.
How do I return goods after invoicing?
On an approved invoice, use Return Order from the more menu to create a Purchase Return Order.
Why is Approve hidden on my invoice?
When multi-level approval is configured on the purchase type, approval follows the approval workflow instead of the direct Approve button.
Why won't my invoice approve when linked to a purchase order?
The linked Purchase Order must be Approved (not Draft or Cancelled) and belong to the same supplier as the invoice.
Why does approve fail when I invoice from a receipt note?
The invoice date must be on or after the linked receipt note date. Item quantities on the invoice must match the receipt note lines being invoiced.
Why can't I cancel my purchase invoice?
Cancel is blocked while linked payments, debit notes, purchase expenses, return orders, or receipt voucher adjustments exist. Remove or cancel those documents first.
Why does approve fail with "payment mode missing"?
Select a Payment mode before approving. Payment mode is required on every purchase invoice.
How do I pay a credit purchase invoice?
Open the approved invoice and use Payment Out from the more menu. Credit invoices stay open with a balance until fully paid.
Which payment modes auto-close on approve? Cash, Bank, Digital Wallet, and Prepaid close automatically when the full amount is settled through the selected mode. Credit stays open until paid via Payment Out.
What is Revise Invoice?
After cancelling an approved invoice, use Revise Invoice to create a corrected copy. The cancelled version is kept for audit; the revised invoice starts as Draft.
Which header fields can I change with Master Update?
Date, Employee In charge, Branch, Brand, Project, Due Date, payment/delivery terms, Supplier Invoice Number, and Job Card. Item lines, amounts, and payment mode cannot be changed through Master Update.
Does a purchase invoice always need a purchase order?
Not by default. A purchase invoice can be raised in a few ways:
Direct purchase invoice — create a standalone invoice with New or Quick, without any prior document (blocked when Prevent direct creation of purchase invoice is on).
Purchase Order → Receipt Note → Purchase Invoice — order the goods, record their receipt, then invoice from the receipt note.
Purchase Quotation → Purchase Order → Receipt Note → Purchase Invoice — the full flow starting from a supplier quotation.
When Prevent direct creation of purchase invoice is enabled, only order-linked (or opening-balance) invoices are allowed.
How do I create a Sale Invoice from a Purchase Invoice?
On an approved or closed purchase invoice, open the more menu (⋮) and select Create Sale Invoice. A new Sale Invoice opens with the item lines copied from the purchase invoice — sale prices and sale tax classes are generated automatically from each item's sale price list and sale tax configuration. Quantities already billed on earlier sale invoices created from the same purchase invoice are deducted, so only the remaining quantity is carried forward. Choose the customer and other sale details, then save or approve as usual. This is useful for trading or drop-ship flows where goods are bought and on-sold against the same document.
How do I create a Delivery Challan from a Purchase Invoice?
On an approved or closed purchase invoice, open the more menu (⋮) and select Create Delivery Challan. A new Delivery Challan opens as an Inward supply with the Supplier and item lines pre-filled from the invoice. Use it to document goods in transit against the purchase and to generate an e-Way Bill where required. The challan is a movement document only — it does not post to stock or accounts.
What is the difference between a Purchase Invoice and a Purchase Order?
A Purchase Order confirms what you ordered — it does not post stock or payables. A purchase invoice bills received goods or services and posts to accounts and inventory on approve.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft, For Revisal |
| Delete | Draft, For Revisal |
| View | All statuses |
| Quick | Opens Quick Purchase / POS entry from the list. |
Creation variants
| **Variant** | **Description** |
|-------------|-----------------|
| Standard new | Full invoice entry from New or converted from an order, quotation, or receipt. |
| Quick Purchase / POS | Fast entry using the Quick button on the list for counter or POS-style purchases. |
| Opening Balance invoice | Created from Supplier Opening Balance. Limited edit and cancel options apply. |
