How to create Purchase Invoice in ERPNext?

Purchase Invoice is the bill that your supplier sends you for the products or services delivered or A purchase invoice is an itemized statement of the goods or services provided by a vendor or supplier. indicates the quantity and price of each product or service provided or to be provided.

Follow below steps to create Purchase Invoice in ERPNext

1)Goto Accounts->Documents->Purchase Invoice->New

or

You can create Purchase Invoice by clicking Invoice in Purchase Order/Purchase Receipt

or

You can create Purchase Invoice by clicking/importing From Purchase Order/From Purchase Invoice in New Purchase Invoice

In the above diagram you can see, we are going to create Purchase Invoice via Accounts->Documents->Purchase Invoice->New

Here you enter all the details of supplier like Supplier Name,Supplier Invoice No,Supplier Invoice Date etc

2)In the Item field add Item details as shown in below diagram

After that enter Quantity and Rate for Item

In the above diagram you can see, in the Accounting we have to add Expense Head/Expense Account Head

Expense Head-Expense Account is an arrangement under which money spent in the course of business.In the above digram you can see we added expense account head for item Graphic Services is Graphic Service - DE. Here Graphic Services is a service item so that we created separate expense account head for that.You can create separate account head for your service items.

If item is a stock Item and you are generating Purchase Invoice from Purchase Order/Purchase Receipt then no need to choose Expense Account Head because ERPNext will automatically

select Expense Account Head for stock items ie it will select Stock Received But Not Billed as expense account head in Purchase Invoice.

3)Add Tax value in Taxes and Charges field

In the above diagram you can see how we added Taxes and Charges

Here you can select separate account head for taxes like Vat,Service tax,TDR

4)After adding all data in Purchase Invoice Save it and Submit.

After submitting Purchase Invoice check ledger to see how accounting entries are done

In the above figure you can see,How Accounting entries for Purchase will be made

Credit

Supplier account will be Credited(here account head is Creditors - DE)

Debit

Tax(VAT@5.5% - DE) and stock expense account(Stock Received But Not Billed - DE) will be Debited