Supplier invoices

Record supplier invoices and match them to purchase orders and receipts.

Overview

A supplier invoice is the bill a supplier sends you. O2M checks it against the purchase order and goods receipt (a three-way match) before you pay.

Why use it

Pay only for what you ordered and received.
Catch price, quantity and GST differences early.
See the net amount after debit notes.

Before you begin

The goods have been received on a goods receipt.

Recording an invoice

Purchase order

price and GST agreed

Goods receipt

units accepted

Supplier invoice

units, price, GST, GSTIN

Matched

or mismatch → approval

Figure 10.1 Three-way matching of a supplier invoice.

Record a supplier invoice from the goods receipt page or from Inbound → Supplier invoices. Enter the invoice number and date, the supplier's GSTIN, each line (SKU, quantity, price, GST) and attach the invoice file.

One receipt can have several invoices, and one invoice can cover several receipts from the same supplier.
The same invoice number cannot be recorded twice for one supplier.

Figure 10.3 Recording a supplier invoice.

Three-way matching

Video

Figure 10.4 A supplier invoice opened with its match against the purchase order and receipt.

O2M checks every line of the invoice against the purchase order and the goods receipt:

Units must equal the units accepted on the receipt.
Price and GST must equal the purchase order line.
The GSTIN must match the supplier's.

Matching is exact. A matched invoice is marked matched. An invoice that differs is marked mismatch with the reasons, and always needs approval by someone with the approve permission, who is told by notification, e-mail and WhatsApp.

Debit notes and net amount

A return to vendor can be tied to an invoice. The invoice page then shows the invoice total, minus its debit notes, as the net amount owed.