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ModulesPurchasePurchase Invoice

Purchase Invoice

Go to: Financials → Purchase Invoice

The purchase invoice records what you owe a supplier. It is the last document in the procurement cycle and the first in the payables cycle.

The purchase invoice lives in the Financials module, because posting it creates the payable in your accounts. This page covers what it means for procurement. For the accounting reference — tax treatment, ledger postings, ageing, and payment matching — see Financials → Invoices.

Where the invoice comes from

For stock items the invoice is raised from the Goods Received Note, not from the purchase order. Invoicing straight off a purchase order is restricted to service items, which never enter stock and therefore have no GRN.

So the goods path is always Purchase Order → GRN → Purchase Invoice, and the services path is Purchase Order → Purchase Invoice.

This is what makes three-way matching work: the order says what was agreed, the GRN says what arrived, and the invoice says what is being charged. Anything that does not line up is visible before you pay.

Key fields

FieldWhat it means
SupplierWho is billing you
Bill NoThe supplier’s own invoice number
Bill DateDate on the supplier’s document
Posting DateDate it enters your books
Due DateWhen payment is due, from the payment term
ItemsPulled from the GRN (or a service purchase order)
Taxes and chargesTax lines and additional charges
Grand TotalThe amount payable

Statuses

StatusMeaning
DraftBeing prepared, not yet in your books
UnpaidPosted and outstanding
Partially PaidSome payment received against it
PaidFully settled
OverduePast its due date and still unpaid
ReturnA return invoice
Debit Note IssuedA debit note has been raised against it
CancelledReversed; kept for audit

Effect on the purchase order

Posting the invoice updates the Billed Quantity on each order line, which feeds back into the purchase order status:

Received complete?Billed complete?Order status
YesYesCompleted
YesNoTo Bill
NoYesTo Receive
NoNoTo Receive And Bill

Returns and debit notes

When goods go back to the supplier, raise a return GRN in Inventory and a debit note against the invoice. The original invoice moves to Debit Note Issued so the reduction in what you owe is explicit rather than netted off silently.

Before you post

CheckWhy
Invoice quantity matches the GRNPrevents paying for goods that never arrived
Rate matches the purchase orderCatches unagreed price increases
Tax treatment is correctWrong tax is painful to unwind after payment
Freight and duty are handledIf they belong in item cost, use a Landed Cost Voucher, not an invoice line
Supplier bill number is enteredIt is how you find the document when the supplier calls

Reports

ReportAnswers
Unpaid Purchase InvoiceWhat is outstanding
Purchase Invoice by SupplierBilled value per supplier
Purchase Invoice by ItemBilled value per item
Pending GRNReceived but not yet fully invoiced
Accounts Payable / AgeingWhat you owe, and how overdue

Full reference

Ledger postings, tax handling, payment entries, and ageing are documented in Financials.