---
title: "Purchase invoice"
description: "What is a purchase invoice? A supplier's bill recorded in your books, creating what you owe and the input tax to reclaim. See how it differs from a PO."
url: https://1flux.ai/glossary/purchase-invoice
last_updated: 2026-10-10
---

[Procurement and inventory](https://1flux.ai/glossary#procurement-and-inventory)

# Purchase invoice

What is a purchase invoice, and how is it different from the purchase order behind it?

Glossary Updated 10 October 2026

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](https://1flux.ai/glossary/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](https://1flux.ai/glossary/purchase-order): the PO is what you ordered, the invoice is what the supplier is charging.

In 1flux

Purchase invoices are built from one or more posted goods receipt reports of one supplier. Posting clears GRNI and books input VAT and the payable. Pay suppliers and allocate each payment to purchase invoices; payments post to the ledger. [See 1flux Purchasing](https://1flux.ai/products/purchasing)

Related

## Keep exploring

### [Three-way match](https://1flux.ai/glossary/three-way-match)

Checking a supplier invoice against the PO and the receipt.

### [Accounts payable](https://1flux.ai/glossary/accounts-payable)

Money you owe suppliers for goods or services invoiced on credit.

### [Goods received not invoiced](https://1flux.ai/glossary/goods-received-not-invoiced)

A liability for goods received but not yet billed by the supplier.

### [Purchasing](https://1flux.ai/products/purchasing)

Requisitions, quotes, LPOs, two-step receiving and receipt-based invoices in one flow.

Last updated 10 October 2026