Supplier invoices

When a supplier bills you for a purchase order, record the bill on the order, then record your payment when you pay it. easySales then shows what is billed, paid and still unbilled, and the bill becomes the actual cost of the deal — see Cost and gross margin. This page is for whoever handles suppliers’ bills.

Before you start

• You need Purchase View and Edit on the order.
• The order must be Issued or Closed. A draft has no number yet; issue it first. A cancelled order takes no bills or payments.
• Have the supplier’s invoice to hand, as a PDF or image if you want to attach it.

Record the supplier’s invoice

1. Open the purchase order and select Record supplier invoice at the top, or in the Supplier invoices section.
2. Enter the Supplier invoice number, the Invoice date, the Subtotal excluding tax and the Tax, exactly as the supplier printed them. The subtotal starts at the part of the order not yet invoiced. Add a Due date (optional) if you want one.
3. For an order in another currency, check the Exchange rate. Left blank, it uses your rate table; Use PO rate copies the order’s own rate.
4. Choose the Tax treatment: Recoverable input tax, or Non-recoverable tax (part of cost). It starts as your company’s tax registration on the invoice date suggests; if you choose the other one, easySales asks for the Reason for the change.
5. Attach the Supplier invoice document if you have it: up to ten files, each up to 25 MB, PDF, images or Office documents.
6. Select Record supplier invoice again at the bottom of the drawer to save it.

Record your payment

1. On the order, select Record payment in the Payments section. Once the order is fully invoiced, it is also the main button at the top.
2. Enter the Payment date, Amount, Method and Reference; choose the Supplier invoice (optional) it pays if you want to link it. The methods are the same list as for customer payments.
3. Select Record payment at the bottom of the window to save it.

What happens next

The strip at the top of the order updates its Invoiced, Paid and Not yet invoiced figures, and the list’s Invoicing and Payment tags follow. Invoiced and Paid include tax; Paid shows the Balance payable beneath it. When everything is invoiced and paid, select Close purchase order.

Rules to know

• Neither the invoice date nor the payment date can be later than today.
• Billing more than the order’s subtotal, or paying more than the invoices recorded or the order’s total, is a warning, not a refusal. Check before you save.
• Recoverable input tax is refused when your company was not registered for a tax it can claim back on the invoice date.
• A supplier invoice with no attached file is tagged No document; the order shows Without a document with the count, and the list’s Supplier invoice without a document filter finds such orders.
• If the same supplier invoice number from the same supplier is on another live supplier invoice, the invoice’s row is tagged Duplicate supplier reference, with links to the other orders.
• To correct a recorded invoice or payment, choose Edit in its row’s menu. Void supplier invoice and Void payment ask for a reason; a voided row stays listed and no longer counts.
• Tax counted as cost raises the deal’s actual cost; recoverable input tax does not.
• Paying a supplier does not change the cost. Cost follows the supplier’s invoice.

Why it works this way

You type the supplier’s figures, not your own. The bill is the supplier’s document. Copying its number, date, subtotal and tax exactly keeps your records in line with the supplier’s statement, and lets your accountant trace every amount back to the paper.

Cost follows the bill, not the payment. You owe the money from the day you are billed, and that is when the job’s cost is known. Paying late changes your cash, not what the work cost you, so the deal’s margin stays right whatever your payment terms.

The tax treatment decides whether tax is cost. A company registered for GST claims input tax back in its return, so that tax costs it nothing in the end; a company that cannot claim it pays it as part of the cost. When you override the suggested treatment, the reason stays on record for your accountant.

Warnings, not refusals. Suppliers add extras and split their bills. easySales flags an amount above the order so you check it, but lets you record what the supplier really billed. A voided bill stays listed with its reason, so the history of the order is complete.

Work faster

• Let the subtotal fill itself. The drawer starts the Subtotal excluding tax at what is not yet invoiced. For one bill covering the whole order, compare it with the paper and save.
• Attach the file as you record. A bill saved without a file is tagged No document; the Supplier invoice without a document filter on the list finds the gaps before month end. See Purchase orders.
• Pay a deposit before the bill. Record payment works before any supplier invoice is recorded; the order shows Prepaid until the bill arrives.
• Use the order’s rate for a foreign-currency bill. Use PO rate copies the rate fixed when the order was issued. See Currency and rates.
• Build your payment run from the list. Remove the Month from the filter bar, then filter Payment to Unpaid and Part paid to see the orders not yet paid in full. See Lists and columns.

Examples

A bill above the order. Lim & Co’s purchase order to the carpentry workshop for the Harbour Café fit-out is for SGD 10,500.00 before tax. After an extra shelf, the workshop bills SGD 10,800.00 plus GST SGD 972.00 (9% of 10,800.00), SGD 11,772.00 in all. Mei Tan records the bill with the workshop’s reference, attaches its PDF, and reads the warning that the invoices are SGD 300.00 more than the order. She checks the extra shelf and saves, with Recoverable input tax, since Lim & Co is registered for GST. The order now shows Invoiced SGD 11,772.00 and Over-invoiced, and the deal’s actual cost goes up by SGD 10,800.00: the GST is claimed back, so it is not cost. When Lim & Co pays by bank transfer, Mei records SGD 11,772.00; easySales notes that this is more than the order’s total of SGD 11,445.00 (10,500.00 plus GST 945.00), and the order reads Paid.

A deposit, then the bill. Lim & Co orders a custom sofa for SGD 4,000.00 plus GST SGD 360.00, SGD 4,360.00 in all, and the maker asks for 30% up front. Mei records a payment of SGD 1,308.00 (30% of 4,360.00). easySales notes that no supplier invoice is recorded yet; she saves, and the order shows Prepaid. When the sofa arrives with the invoice for SGD 4,360.00, she records it, and the order shows Part paid with a balance payable of SGD 3,052.00 (4,360.00 − 1,308.00). She records that payment, the order reads Paid, and she closes it.

Common questions

• Can I record a supplier invoice on a closed purchase order? Yes. A closed order still takes supplier invoices and payments in its Supplier invoices and Payments sections; you do not need to reopen it.
• Can I pay a supplier before they send an invoice? Yes. Record the payment on the issued order; it shows Prepaid until the supplier’s invoice is recorded.
• The supplier sent one invoice for two purchase orders. How do I record it? Record it on each order, with the same invoice number and only the part that belongs to that order. easySales warns that the number is already recorded and tags both rows Duplicate supplier reference.
• Is the GST on a supplier invoice part of my cost? Only when you record it as Non-recoverable tax (part of cost). Recoverable input tax is left out of the deal’s cost. See Cost and gross margin.
• How do I fix a supplier invoice I entered wrongly? Choose Edit in its row’s menu and correct it. If it does not belong on the order at all, choose Void supplier invoice and give a reason; it stays listed as voided.
• Which exchange rate does a foreign-currency supplier invoice use? Your rate table’s rate unless you type one; Use PO rate applies the order’s rate. The invoice is recorded in the order’s currency.
• Can I record a payment I have not made yet? No. The payment date cannot be later than today, so record a payment once it has been made.

Related

• Purchase orders
• Cost and gross margin
• Opportunities
• Keeping records