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A Purchase Invoice is the record of a supplier’s bill in Bizaxl. When your distributor or manufacturer sends you an invoice for goods delivered, you record it as a Purchase Invoice. This tells the system what you owe, to whom, and by when - and enables you to track supplier payments and claim input GST credit.
Purchase Invoice form showing supplier, bill number, items, taxes, and outstanding amount

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Who Uses This Feature

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Before You Start

  • A Purchase Receipt should already be created and submitted for the goods being invoiced
  • The Supplier must be in the supplier list with their GSTIN entered (for input tax credit)

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How to Create a Purchase Invoice

  1. Open the relevant Purchase Receipt (status should be “To Bill”)
  2. Click Create → Purchase Invoice
  3. All items, quantities, and amounts are copied automatically
  4. Enter the Supplier’s Invoice Number (Bill No) from the paper invoice
  5. Enter the Bill Date from the invoice
  6. Confirm the Due Date (when payment is required)
  7. Review taxes - adjust if the supplier’s invoice shows a different tax amount
  8. Submit

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Method 2: From Scratch

  1. Go to Accounting workspace → Purchase Invoice → New
  2. Select the Supplier
  3. Enter the Bill No and Bill Date
  4. Add items manually, matching the supplier’s invoice
  5. Apply the correct GST template
  6. Submit
Always create Purchase Invoices from Purchase Receipts. This links the invoice to the goods received and ensures your stock records and financial records are consistent.

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Field Guide

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Items Table

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Taxes

The total on your Purchase Invoice must match the supplier’s paper invoice exactly. If there is a difference (even ₹1), resolve it before submitting - do not adjust it manually without understanding why the difference exists.

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Supplier’s GSTIN and Input Tax Credit

For GST input tax credit to be claimable:
  • The supplier’s GSTIN must be entered on their Supplier record
  • The invoice must have the correct GST amount and rate
  • The supplier must have filed their GSTR-1 - verify this using the Purchase Reconciliation Tool in the GST India workspace
If a supplier is unregistered under GST (composition dealer or unregistered), input tax credit cannot be claimed on their invoices.

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Workflow Journey

1

Draft created from purchase receipt

The invoice is created from a submitted Purchase Receipt, with items and amounts pre-filled.
2

Enter bill number, bill date, and due date

Copy these details from the supplier’s paper invoice.
3

Review and confirm tax amounts

Cross-check the calculated GST against the supplier’s invoice to ensure they match exactly.
4

Submit

The invoice is now official and appears in Accounts Payable as an outstanding amount.
5

Payment entry created

When payment is due, the accounts team raises a Payment Entry linked to this invoice.
6

Invoice marked paid

Once the full amount is cleared, the invoice status changes to Paid.

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Status Meanings

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Making a Payment Against a Purchase Invoice

  1. Go to Accounting workspace → Payment Entry → New
  2. Set Payment Type to “Pay”
  3. Select Party Type = Supplier
  4. Select the Supplier
  5. In the References table, select the Purchase Invoice to pay
  6. Enter the Amount Paid
  7. Submit
The Purchase Invoice status will change to “Paid” once the full amount is settled. See Payment Entry for full instructions.

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Viewing Outstanding Payables

To see all unpaid supplier invoices:
  • Accounting workspace → Accounts Payable report
  • Filters: date range, supplier, status
  • The report shows outstanding amount, due date, and how many days overdue

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Purchase Return / Credit Note

If a supplier has overcharged, sent the wrong goods, or you are returning stock:
  1. Open the original Purchase Invoice
  2. Click Create → Return (Debit Note)
  3. Enter the items and amounts being returned
  4. Submit - this reduces the outstanding amount on the original invoice

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Best Practices

  • Always enter the Bill No. This is your reference for disputes. Without it, you cannot match your records to the supplier’s records.
  • Set the due date on every invoice. The Accounts Payable report is only useful if due dates are recorded - without them, you cannot see which invoices are overdue.
  • Cross-check rates. Suppliers sometimes bill at a different rate than what was agreed in the Purchase Order. Compare the invoice line by line.
  • File invoices in a physical folder alongside the Purchase Receipt (delivery challan). Auditors and your GST practitioner will need these.
  • Reconcile monthly using the Purchase Reconciliation Tool to ensure supplier GSTR-2A data matches your records.

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Common Mistakes

  • Creating a Purchase Invoice without a Purchase Receipt. This means the goods are billed before being confirmed as received. Your stock record and financial record will not match.
  • Submitting with wrong tax amounts. Once submitted, the GST amounts flow into your GSTR-3B. Wrong amounts = wrong tax payment.
  • Not entering the due date. Unpaid invoices without due dates do not trigger overdue alerts - you will miss payment deadlines.
  • Paying suppliers outside the system. Cash payments made without a Payment Entry in the system leave the invoice showing as “Unpaid” forever.