Purchase Invoices

A Purchase Invoice is a transactional document used to record purchases made from suppliers. It records your business expenses, updates supplier payables, and creates the required accounting entries in the General Ledger.

After submitting a Purchase Invoice, you can record supplier payments, process purchase returns, and keep your accounts payable up to date.

Create a Purchase Invoice

Navigate to:

Purchases > Purchase Invoices

Click the + button to create a new Purchase Invoice.

Steps

1. Select the supplier.
2. Click Add Row and choose the purchased item.
3. The default tax is applied automatically. Modify it if necessary.
4. Enter the item quantity.
5. Add additional items if required.
6. Click Save.
7. Review the invoice and click Submit.

After submission, Frappe Books automatically records the purchase transaction and generates the required ledger entries.

Record Supplier Payments

Once a Purchase Invoice has been submitted, record the payment made to the supplier.

Steps

1. Open the submitted Purchase Invoice.
2. Click the … menu.
3. Select Make Payment.
4. The outstanding amount is filled automatically.
5. Review or modify the payment details.
6. Click Save.

The payment is automatically submitted and the accounting records are updated.

Payment Effects

• Reduces the Accounts Payable balance.
• Reduces the Cash or Bank account balance.
• Updates the Outstanding Amount on the Purchase Invoice.

Invoice Status

Auto Payments

You can automate supplier payments by enabling Auto Payments.

Configure the default payment accounts from:

Setup > Settings > Defaults > Auto Payments

After configuration, Frappe Books automatically creates a payment entry whenever a Purchase Invoice is submitted.

Purchase Invoice Returns

If purchased goods are returned to the supplier, create a Purchase Invoice Return to reverse the original transaction.

Create a Return from an Existing Invoice

1. Open the original Purchase Invoice.
2. Select Create > Return.
3. The supplier and item details are copied automatically.
4. Enter returned quantities as negative values.
5. Save and Submit.

Create a Return Manually

1. Navigate to Purchases > Purchase Invoices.
2. Select Return Against.
3. Choose the original Purchase Invoice.
4. Enter the returned items.
5. Save and Submit.

General Ledger Impact

A Purchase Invoice Return automatically creates General Ledger entries that reverse the accounting impact of the original Purchase Invoice.

• Reduces Purchase or Expense accounts.
• Adjusts Accounts Payable.
• Reverses applicable tax entries.
• Maintains accurate financial records.

Related Features

Best Practices

• Verify supplier and purchase item details before submitting the invoice.
• Review taxes, quantities, and purchase amounts carefully.
• Record supplier payments promptly to keep outstanding balances accurate.
• Use Auto Payments to simplify repetitive payment workflows.
• Create Purchase Invoice Returns instead of modifying submitted invoices.
• Regularly review Accounts Payable and the General Ledger for accurate financial reporting.