Purchasing & Vendor Bills

Purchase orders, goods receipts, vendor dues, and accounts payable

3 min read Updated Sep 20, 2026

Overview

What Purchasing is for

Use Purchasing for vendor orders, received goods, bills, returns and payments. Use a direct Expense only when the activity does not require a vendor purchase workflow.

Overview

Before you start

Confirm the vendor, receiving location, products, tax treatment and payment account.

Vendors: Keep supplier identity, PAN/VAT and payment terms accurate.
Warehouse: Choose where received stock should be placed.
Tax treatment: Apply the correct purchase tax configuration before completing the bill.

Overview

Common purchasing workflow

A purchase and its payment may happen at different times.

Vendor purchase

1Vendor
2Purchase Order
3Goods Receipt
4Purchase Bill
5Payment

Overview

Manage the purchase lifecycle

Ordering, receiving, billing and paying are separate events even when they happen on the same day.

Orders: Record what was requested and approved; an order alone does not increase stock or create a vendor bill.
Receipts: Confirm what physically arrived, including location, quantity, batch and expiry where applicable.
Bills: Record the vendor invoice, due amount, tax and payable obligation.
Payments and debit notes: Apply actual payments to bills and use linked debit notes or returns for supported corrections.

Overview

What happens next?

Each document updates a different part of the business. Check the vendor activity when stock, payable or payment does not agree.

After a purchase order: The commitment is recorded for follow-up, but stock and payable balances do not increase merely because it was ordered.
After a goods receipt: Received quantity becomes available in the selected warehouse with its supported batch or serial details.
After a purchase bill: The vendor obligation and configured expense, inventory and tax effects become part of the books.
After a vendor payment: Money leaves the selected financial account and reduces the open bill when correctly allocated.

Overview

Avoid common mistakes

Check these points before correcting a vendor balance or purchase.

Do not duplicate the purchase as Expense: A posted purchase bill already creates the supported cost and payable effect.
Do not confuse receiving, billing and paying: Each event has a different stock, payable and cash consequence.
Choose the correct vendor: Vendor statements, aging and payment allocation depend on a consistent supplier record.
Treat resale stock as inventory: Use the correct product and warehouse instead of classifying stock purchases as a general expense.
Verify tax before posting: Correct tax treatment at the source instead of repairing the register later.
Allocate payments correctly: An unallocated payment may leave the intended bill appearing unpaid.

Overview

Need more help?

Review the purchase order, receipt, bill and payment as separate connected records. Correct the source document instead of creating a duplicate cost.