Supplier Invoice Tutorial

Supplier Invoice Types

Although only one transaction type is needed, Supplier Invoices may be divided into three to facilitate capturing the correct contra details. These three types are:

1. Supplier Invoice - Expenses (SI-EXP)

   1. • 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.

2. Supplier Invoice - Inventory (SI-INV)

   1. • 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 are typically copied from Goods Received transactions and Purchase Orders.

      • Accounting:  When items are posted to inventory, or an accrual account that is used as a suspense account, it is necessary to periodically clear the account and transfer the balances to either Cost of Sales or Stock on Hand. If this step is not done, both the profit and inventory on hand will be overstated.

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

   1. • Purpose: This invoice type is for costs directly associated with production that are not classified as inventory or does not require inventory to be tracked. Examples include invoices for subcontracting services, specialised labour, or production materials that are purchased for a specific job.

      • Key Differences: SI-COS Invoices can be posted directly to cost of sales or purchases (e.g. Cr Supplier, Dr Purchases: Outwork).

 Creating a Supplier Invoice Using Copy Rules

ℹ️ Supplier Invoices can be created by copying a Purchase Order or a Goods Received if the necessary Copy Rules are created.

1. Copying a Purchase Order to Supplier Invoice

   1. From a list of purchase orders: open the relevant Purchase Order (INV / EXP / COS).

   2. Click Copy (button) > Copy to Supplier Invoice (INV / EXP / COS). 

   3. Check the items that must be copied.

   4. Click Copy (button) to generate the Supplier Invoice (INV / EXP / COS).

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

2. Copying a Goods Received to Supplier Invoice

   1. From a list of Goods Received transactions: Open the applicable Goods-Received transaction.

   2. Click Copy (button) > Copy to Supplier Invoice (INV / EXP / COS).

   3. Check the items that must be copied.

   4. Click Copy (button) 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 Supplier Invoice

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

2. Click New (button).

3. Select the Supplier and the Contact (if it is not prefilled).

   • Note: The Invoice Currency is the supplier’s currency if the transaction type is set to use multiple currencies.

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

5. In the Items section, use the Items Lookup to locate items.

6. Select an Item > Specify the Quantity > Click Add (button).

7. Repeat Step 6 to add more items.

8. Custom items can be added by clicking Custom (button).  For custom entries, the debit account must be selected and the amounts entered.

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

Related Topics

• Tutorials: Supplier Debit Notes

• Tutorials: Supplier Payments