Supplier Invoice Tutorial

Supplier Invoice Types

Supplier Invoices are categorised into three main types: Supplier Invoices - Expenses (SI-EXP), Supplier Invoices - Inventory (SI-INV), and Supplier Invoice - Cost of Sales (SI-COS). Each type serves a specific purpose and follows unique rules based on the nature of the purchase and its impact on financial records.

1. Supplier Invoice - Expenses (SI-EXP)

• Purpose: Used for recording general business expenses unrelated to inventory, such as administrative costs, office supplies, invoices for utilities, rent, or professional services.

• Key Differences: SI-EXP Invoices do not affect inventory or production costs directly. They are allocated to standard expense accounts rather than inventory or cost of sales.

2. Supplier Invoice - Inventory (SI-INV)

• Purpose: Used for purchases that add to the company’s inventory, typically items for resale or raw materials for production.

• Key Differences: SI-INV Invoices impact the Inventory module, adding stock that will either be resold or used in production. These invoices typically pull data from Goods Received transactions, linking back to original Purchase Orders.

3. Supplier Invoice - Cost of Sales (SI-COS)

• Purpose: This invoice type is for costs directly associated with production that are not classified as inventory. They track costs tied to production but not as part of the finished goods inventory. Examples include invoices for subcontracting services, specialised labour, or non-inventory production materials (eg. raw materials).

• Key Differences: SI-COS Invoices impact production costs and gross profit calculations directly, rather than adding stock. They are often allocated to Cost Centres or COGS accounts related to manufacturing.

 Creating a Supplier Invoice Using Copy Rules

Supplier Invoices  (INV / EXP / COS) can be created by copying information from either a Purchase Order (INV / EXP / COS) or a Goods Received.

1. Copy a Purchase Order to Supplier Invoice

   1. Navigate to Main Menu > Suppliers > Purchase Orders (INV / EXP / COS).

   2. Open the relevant Purchase Order (INV / EXP / COS).

   3. Click Copy (button) > Copy to Supplier Invoice (INV / EXP / COS) to open the Copy dialogue.

   4. Select the Items to invoice, then click Copy to generate the Supplier Invoice  (INV / EXP / COS).

   5. Enter any additional information, such as the Supplier Invoice Number supplied by the vendor.

2. Copy a Goods Received to Supplier Invoice

   1. Navigate to Main Menu > Items > Goods Received.

   2. Open the Goods Received related to the Supplier Invoice  (INV / EXP / COS).

   3. Click Copy (button) and select Copy to Supplier Invoice (INV / EXP / COS).

   4. Select the Items to invoice, then click Copy to generate the Supplier Invoice  (INV / EXP / COS).

   5. Enter any additional information, such as the Supplier Invoice Number supplied by the vendor.

Manually Creating a New Supplier Invoice

If the Supplier Invoice (INV / EXP / COS) is not related to a pre-existing transaction, it can be created manually:

1. Navigate to Main Menu > Suppliers > Supplier Invoice  (INV / EXP / COS).

2. Click New (button) from the grid view or within an open invoice.

3. Select the Supplier and then select the Contact (if only one contact is linked, it will auto-select).

   • Note: The Supplier Invoice Currency will automatically update to match the Supplier’s Default Currency.

4. Enter any additional information, such as the Supplier Invoice Number supplied by the vendor.

5. In the Items section, enter a Search String and use the Items Lookup to locate items.

6. Select an Item > Specify the Quantity > Click Add.

7. Review all details for accuracy, then set the Status to Complete to finalize.

Accounting for Supplier Invoices

Supplier Invoices may include various items that need an accurate allocation to specific accounts. To streamline this process:

• Suspense Account: By default (unless set up otherwise), Supplier Invoices debit a Suspense account (a Current Asset account) to temporarily hold amounts until reconciled.

• Clearing Suspense SI: This account should be cleared by the end of each accounting period to ensure that all Supplier Invoices are appropriately allocated and no amounts remain pending.