Definition
A purchase invoice is a supplier's bill as recorded in the buyer's books, creating the amount owed to that supplier and any input tax to reclaim.
What is a purchase invoice used for?
The same document is a sales invoice for the supplier and a purchase invoice, or supplier bill, for you. Recording it moves the cost from an accrual or expense into accounts payable, ready to be paid by its due date. The supplier’s invoice number should be recorded so the same bill can’t be entered twice.
Example: a trader records a supplier’s invoice for EUR 23,000 plus EUR 4,600 VAT, due in 45 days, against last week’s receipt.
Don’t confuse a purchase invoice with a purchase order: the PO is what you ordered, the invoice is what the supplier is charging.