> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Purchase Invoice

> How to record supplier bills and manage what your business owes to distributors and manufacturers in Bizaxl Medical Retail.

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.

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/bizaxloptimizationsllp/images/placeholder-purchase-invoice-form.png" alt="Purchase Invoice form showing supplier, bill number, items, taxes, and outstanding amount" />
</Frame>

***

## Who Uses This Feature

| Role                  | What They Do Here                                                |
| --------------------- | ---------------------------------------------------------------- |
| **Accounts Staff**    | Creates Purchase Invoices from supplier bills; processes payment |
| **Store Manager**     | Reviews outstanding payables; approves invoices before payment   |
| **Procurement Staff** | Checks that received goods match the invoice                     |

***

## 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)

***

## How to Create a Purchase Invoice

### Method 1: From a Purchase Receipt (Recommended)

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

### 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

<Tip>
  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.
</Tip>

***

## Field Guide

### Header

| Field            | What to Enter                                          | Required?                        |
| ---------------- | ------------------------------------------------------ | -------------------------------- |
| **Supplier**     | The distributor or manufacturer                        | Yes                              |
| **Company**      | Your company                                           | Yes                              |
| **Posting Date** | The date you are recording this invoice (today)        | Yes                              |
| **Bill No**      | The invoice number printed on the supplier's bill      | No (but strongly recommended)    |
| **Bill Date**    | The date on the supplier's invoice                     | No                               |
| **Due Date**     | When payment is due - critical for payables management | No (defaults from payment terms) |
| **Is Return**    | Tick only for debit notes (purchase returns)           | No                               |

### Items Table

| Field               | What to Enter                                                 |
| ------------------- | ------------------------------------------------------------- |
| **Item Code**       | Auto-filled from Purchase Receipt                             |
| **Qty**             | Quantity - should match the receipt and supplier invoice      |
| **Rate**            | Price per unit - cross-check with supplier invoice            |
| **Amount**          | Auto-calculated                                               |
| **Expense Account** | The account this purchase expense is charged to - auto-filled |

### Taxes

| Field                 | What to Enter                                                   |
| --------------------- | --------------------------------------------------------------- |
| **Taxes and Charges** | GST template - auto-filled from item setup                      |
| **Tax Amount**        | Cross-check the calculated tax against the supplier's invoice   |
| **Total**             | Total after taxes - should match the supplier's invoice exactly |

<Warning>
  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.
</Warning>

***

## 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.

***

## Workflow Journey

<Steps>
  <Step title="Draft created from purchase receipt">
    The invoice is created from a submitted Purchase Receipt, with items and amounts pre-filled.
  </Step>

  <Step title="Enter bill number, bill date, and due date">
    Copy these details from the supplier's paper invoice.
  </Step>

  <Step title="Review and confirm tax amounts">
    Cross-check the calculated GST against the supplier's invoice to ensure they match exactly.
  </Step>

  <Step title="Submit">
    The invoice is now official and appears in Accounts Payable as an outstanding amount.
  </Step>

  <Step title="Payment entry created">
    When payment is due, the accounts team raises a Payment Entry linked to this invoice.
  </Step>

  <Step title="Invoice marked paid">
    Once the full amount is cleared, the invoice status changes to Paid.
  </Step>
</Steps>

***

## Status Meanings

| Status                 | What It Means                                      |
| ---------------------- | -------------------------------------------------- |
| **Draft**              | Created, not yet submitted - can be edited         |
| **Submitted / Unpaid** | Submitted and outstanding - payment not yet made   |
| **Partly Paid**        | Partial payment made                               |
| **Paid**               | Fully paid                                         |
| **Return Issued**      | A credit note has been raised against this invoice |
| **Overdue**            | Past due date and not fully paid                   |
| **Cancelled**          | Invoice was cancelled                              |

***

## 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](/retail/medical-retail/payment-entry) for full instructions.

***

## 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

***

## 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

***

## 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.

***

## 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.

***

## Related Features

* [Purchase Receipt](/retail/medical-retail/purchase-receipt) - goods receipt that precedes invoicing
* [Purchase Order](/retail/medical-retail/purchase-order) - the original order
* [Payment Entry](/retail/medical-retail/payment-entry) - making payments to suppliers
* [Supplier Management](/retail/medical-retail/supplier-management) - supplier GSTIN and credit terms
* [GST Compliance](/retail/medical-retail/gst-compliance) - input tax credit reconciliation