Overview

This article outlines the process of creating, managing, and troubleshooting Purchase Invoices in iVendNext.

1. What is a Purchase Invoice?

A Purchase Invoice is a bill you receive from your supplier against which you need to make a payment. It is the opposite of a Sales Invoice, where you record income from customers. In iVendNext, Purchase Invoices help you:

• Accrue expenses to your supplier.

• Update your inventory (if applicable).

• Maintain accurate financial records.

2. How to Create a Purchase Invoice

Creating a Purchase Invoice in iVendNext is straightforward. 

Follow these steps:

2.1 Accessing the Purchase Invoice List

1. Go to Home > Buying.

2. Under the Buying section, click on the Purchase Invoice shortcut.

3. This will take you to the Purchase Invoice List View Screen.

2.2 Adding a New Purchase Invoice

1. Click on the Add Purchase Invoice button.

2. Fill in the required details in the New Purchase Invoice Creation Screen.

2.3 Filling in the Details

The Purchase Invoice Creation screen is divided into several tabs:

• Details Tab: Enter basic information like Supplier, Posting Date, Due Date, and Items.

• Payments Tab: Manage payment details, including advance payments.

• Address and Contact Tab: Add billing and shipping addresses.

• Terms Tab: Set payment terms and conditions.

• More Info Tab: Add additional information like GST details (for India) and remarks.

3. Prerequisites for Creating a Purchase Invoice

Before creating a Purchase Invoice, ensure the following are set up in iVendNext:

• Item: The goods or services you are purchasing.

• Supplier: The party from whom you are purchasing.

• Purchase Order (optional): If the purchase is based on an order.

• Purchase Receipt (optional): If the goods have already been received.

4. Common Scenarios and Features

4.1 Creating a Purchase Invoice from a Purchase Order

If you have a Purchase Order, you can automatically fetch the details into the Purchase Invoice. Click on Get Items from and select the Purchase Order or Purchase Receipt.

4.2 Manual Creation of a Purchase Invoice

If you are creating a Purchase Invoice manually:

1. Select the Supplier.

2. Add Items and quantities in the Items table.

3. The Rate and Amount will be fetched automatically.

4. Set the Due Date for payment.

5. Save and Submit the invoice.

4.3 Additional Options

• Is Paid: Tick this if the amount has already been paid via an Advance Payment Entry.

• Is Return (Debit Note): Use this if the customer has returned items.

• Apply Tax Withholding Amount: Enable this if the supplier has a Tax Withholding Category.

5. Statuses of a Purchase Invoice

Understanding the status of a Purchase Invoice is crucial for tracking payments and returns:

• Draft: The invoice is saved but not yet submitted.

• Submitted: The invoice is submitted, and the general ledger is updated.

• Paid: The supplier has been fully paid.

• Partly Paid: Partial payment has been made.

• Unpaid: The invoice is yet to be paid.

• Overdue: The due date for payment has passed.

• Canceled: The invoice has been canceled.

6. Troubleshooting Common Errors

Here’s a quick look at some common issues you might run into.

6.1 Account Type Error

When saving a Purchase Invoice, you may encounter an error stating that the Credit To Account must be a Balance Sheet account. This error occurs because the Payable Account (Credit To) must be under the Liability group in your Chart of Accounts.

Solution: Ensure the Payable Account selected in the Purchase Invoice is located under the Liability group.

7. Special Cases: Purchase Invoices for Services

In some cases, you may need to create a Purchase Invoice for services rather than physical goods. In iVendNext, item creation is not mandatory for service-based transactions. You can directly create a Purchase Invoice for services without linking it to an item.