Purchase Invoices

A purchase invoice records a bill that a supplier sends you for goods or services. When you submit it, Frappe Books makes the ledger entries and records the amount that you owe the supplier.

Before you make purchase invoices, add your suppliers, your purchase items, and your taxes. For the steps, see Create Initial Entries.

Creating Purchase Invoices

1. Click Purchases > Purchase Invoices in the sidebar.
2. Click New.
3. Select the Supplier. Frappe Books fills the Account with the payable account of the supplier.
4. In Items, click Add row and select the Item.
5. Enter the Qty.
6. If the supplier charges a different price, change the Rate.
7. Add a row for each of the other items.
8. Click Save.
9. Click Submit and click Yes.

After you submit the invoice, you cannot edit it. For more information, see Save and Submit Documents.

You can also open a supplier, click the … button, and click Create purchase.

Items and Taxes

The item list shows the items with the purpose Purchases or Both. When you select an item, Frappe Books fills the Rate, the Tax, and the expense Account of the row from the item. If you type a different rate, Frappe Books keeps your rate. To see all the fields of a row, click Edit row at the end of the row. For more information, see Items.

Frappe Books calculates the taxes of each row from its Tax. You cannot edit the Taxes table. To change a tax, change the Tax of the item row. To charge no tax on a row, clear its Tax. For more information, see Taxes and Discount Accounting.

What Submit Does

When you submit a purchase invoice, Frappe Books makes these ledger entries:

The Outstanding Amount is the amount that you still owe. The invoice status is Unpaid, Partly Paid, or Paid. To see the ledger entries, click View > Accounting entries.

Making Purchase Payments

1. Open the submitted purchase invoice.
2. Click Create > Payment. Frappe Books fills the Amount with the outstanding amount.
3. Check the Payment Method and the From Account.
4. If the payment method is not Cash, enter the Ref. / Cheque No.
5. Click Save.
6. Click Submit and click Yes.

Frappe Books updates the Outstanding Amount and the status of the invoice. To pay less than the outstanding amount, turn on Enable Partial Payment in the General settings. For more information, see Payments.

Auto Payments

To make the payment when you submit the invoice, select the Purchase Payment Account in the Defaults settings. The list shows only cash and bank accounts.

Each new purchase invoice then has Make Payment On Submit selected in its Settings tab. When you submit the invoice, Frappe Books submits a payment for the full amount from this account. The payment uses the invoice number as its reference. To skip the payment for one invoice, clear Make Payment On Submit before you submit.

Purchase Receipts

When inventory is on, a purchase invoice can also receive the items into your stock. To do this, select the Purchase Receipt Location in the Defaults settings.

Each new purchase invoice then has Make Purchase Receipt On Submit selected in its Settings tab. When you submit the invoice, Frappe Books submits a purchase receipt for the items that have Track Inventory selected. The invoice shows the receipt in Back Reference.

To receive the items later, open the submitted invoice and click Create > Purchase Receipt. Stock Not Received shows the quantity that is not received yet. For more information, see Purchase Receipt.

Purchase Invoice Return

A return records the items that you send back to the supplier. It reverses the ledger entries of the original invoice for the returned items. To make returns, turn on Enable Invoice Returns in the General settings.

1. Open the submitted purchase invoice.
2. Click Create > Return. A new invoice opens with the items that earlier returns did not take back.
3. Change the quantities to the quantities that you return. You can enter positive numbers.
4. Remove the rows of the items that you do not return.
5. Click Save.
6. Click Submit and click Yes.

To make a return manually, make a new invoice and select the original invoice in Return Against. The supplier must be the same, and each item must be on the original invoice. The returned quantities and value cannot be more than the original invoice.

The return has the status Return, and the original invoice gets Return Issued. The outstanding amount of a return is negative. To record the refund from the supplier, open the return and click Create > Payment.

Cancelling a Purchase Invoice

When you cancel an invoice, Frappe Books reverses its ledger entries. It also cancels the payments that settle the invoice and the purchase receipt that the invoice made on submit. If a submitted return refers to the invoice, cancel the return first.

To make a corrected copy, open the cancelled invoice and click Create > Duplicate.