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Jiwa Training Centre

Purchase Invoice

In this article we will be looking at the final stage of the purchasing process and that is recording an invoice against the GRN.

Before proceeding we recommend that the following articles are reviewed;

Purchase Invoices

Purchase invoices are based on GRN's and cannot be created until a GRN has been created and activated.

The purchase invoice itself does not update the stock ledger again for goods purchased or the expense for services recorded against the GRN but rather moves the liability for these purchases from the accrual accounts to Trade Creditors and takes up GST Paid (if applicable).

Once a purchase invoice has been linked to a GRN the GRN is updated with the status of Invoiced and is no longer available for selection when creating purchase invoices.

A purchase invoice can be created from the GRN itself or from the menu option Invoice Entry.  

Both methods are described below;  

Create Purchase Invoice from GRN

Creating your purchase invoice directly from the GRN form itself is useful if you receive your supplier invoice at the time the goods are received making the process from Purchase Order to GRN to Purchase Invoice quite seemless.

When in the GRN form has been activated the Create Purchase Invoice icon is enabled on the menu ribbon.

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Click on the Create Purchase Invoice icon

This will activate the Purchase Invoice form populated with details from the GRN that the purchase invoice was generated from.

Enter in your invoice number in the invoice number field and set the invoice date

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On the Inventory tab confirm the quantity invoiced and unit prices

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Additional lines cannot be added to the purchase invoice as each line must be linked to a GRN.  

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Amending the quantity invoiced has different results depending on if the quantity is being increased or decreased.

Increasing the quantity invoiced will not change the purchase order or GRN but the stock ledger will be updated with the additional stock being invoiced on the purchase invoice.

Decreasing the quantity invoiced will not change the purchase order or GRN.  The stock ledger will not be updated with the decrease in stock invoiced.

When too much stock has been received on the GRN then the GRN should be invoiced in full and a Supplier Return Credit created for the over-supply.

If you have further questions regarding changing the quantity invoiced on purchase invoices please contact your Jiwa Consultant.

On the Non-Inventory tab confirm the quantity and unit prices of all non-inventory items.

Add any freight applicable to the purchase invoice in the freight section of the form.

If freight was added to the GRN then the freight value will automatically be populated from the GRN.

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Once you have checked the details confirm the Invoice Total value on the form against the physical invoice.

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If your Invoice Total is out by a cent or so due to tax rounding, the Tax Adjustment field can be used to take this rounding variance into account.

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Once you have confirmed the invoice details Save and Activate your purchase invoice.    

Create Purchase Invoice using the Invoice Entry Form

Supplier invoices for stock can also be created from the Invoice Entry form.

From the Purchasing menu select Invoice Entry

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From the menu ribbon select New to create a new purchase invoice

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From the Creditors Search form select the supplier you are working with.

To add your GRN's to the purchase invoice click on the GRN lookup icon

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This will activate the GRN Search form which will display all un-invoiced GRN's available for the selected supplier.

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Once you select your GRN to be invoiced the GRN line details will be populated into the Purchase Invoice form.

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Complete your purchase invoice as per the instructions above.