Orders, receipts, returns and import expenses
Four advanced documents around the supplier invoice: what each does to stock and the payable, and when you need it.
On this page
Enabling the advanced documents
The supplier invoice and purchase return are always visible. Purchase orders, Goods receipt and Import expenses are hidden in simple mode until you enable their features under Settings, then Features. See Features and simple mode.
The purchase order
A commitment to buy from a supplier before the goods arrive. From Purchasing, then Purchase orders: choose the supplier, the lines and the Arrival date, and post to confirm (number PO-26-01-000001). No effect on stock or the books. The Fulfillment column tracks what was received and invoiced from it, and the Convert button turns it into a receipt or directly into an invoice, fully or for selected quantities.
The goods receipt
The goods arrived but the invoice has not. From Purchasing, then Goods receipt or by converting the order, record the received quantities and their expected cost and post (number GRN-26-01-000001). The goods enter the warehouse immediately at that cost so the cashier can sell them, while the supplier balance stays untouched because the invoice has not arrived.
What happens in the books on receipt
Debit 1500 Inventory, credit 2110 Goods received not invoiced under the supplier's name, in the base currency. This is a holding account carrying your obligation until the invoice arrives; its balance should return to zero once every receipt is invoiced.
The invoice from a receipt: clearing the holding account and the price difference
When the supplier's invoice arrives, convert the receipt to it and type the actual price. On posting:
- The "Goods received not invoiced" account is cleared at the original receipt cost.
- The difference between the invoice price and the receipt cost: if the item still has a balance in the warehouse, stock is revalued by it so the average changes without the quantity; if the goods have all been sold, the difference is booked to 5110 Inventory adjustments.
- Input VAT and the supplier payable are booked as on a direct invoice; see The supplier invoice.
The purchase return
Goods you send back to the supplier. From Purchasing, then Purchase returns: choose the supplier and their origin invoice, quantities not exceeding what remains on each line, the Return reason, and post (number PRT-26-01-000001).
The goods leave the warehouse at the current average, while the supplier payable is reduced at the original invoice price. The difference between the two is deliberate and is booked to inventory adjustments.
What happens in the books on a return
Debit 2100 Supplier payables under the supplier's name for the total; credit 1600 Input VAT for the tax; credit 1500 Inventory for the outgoing value at average (or 5900 General expenses for service items); and the difference between them on 5110 Inventory adjustments in either direction.
Import expenses
Shipping, customs and insurance are part of the goods cost, not a general expense. From Purchasing, then Import expenses and New import expenses:
- Choose the Purchase invoice (posted) these expenses belong to; it must contain stock lines.
- Add the lines: freight, clearance, insurance, each with its amount. Each line has an optional Account; a line without an account is booked to the Shipping company payable, so choose the Shipping/clearance company as a supplier in the header.
- Choose the Allocation method: By value (by each line's net) or By quantity. An Allocation table shows each line's share before posting, with no lost cents.
- Save and post. The number is in the form
LC-26-000001.
Every stock line on the invoice has its value raised by its share so its average cost rises, without changing the quantity. This way the profit margin reflects the true cost of imported goods.
What happens in the books on import expenses
Debit 1500 Inventory for the total expenses; credit 2100 Supplier payables under the shipping company's name for every line without an account, or the account set on the line. A line with no account and no shipping company is refused with a message that the document needs a party.
Order of cancellation
A supplier invoice with posted import expenses or returns cannot be cancelled before they are cancelled. And a document partly paid by a payment voucher needs the voucher cancelled first. See Posting and cancelling.
Which path suits you
| Your situation | Documents |
|---|---|
| A shop buying from local suppliers where the invoice arrives with the goods | A direct supplier invoice only |
| Goods arrive days before the invoice and are sold immediately | Receipt, then an invoice from the receipt |
| You order from the supplier in advance and track what arrived | Order, then receipt or invoice |
| You import and pay freight and customs | Supplier invoice, then import expenses |
Frequently asked questions
I sold the goods before the supplier invoice arrived. Is that a problem?
No, that is why the goods receipt exists. The goods entered at the receipt cost and were sold at it. When the invoice comes at a different price, the difference is booked to inventory adjustments if no balance remains.
Can import expenses be spread over more than one invoice?
No. An import expenses document belongs to one posted purchase invoice. For a shipment covering two invoices, create two documents and split the expenses between them.
Why did a difference appear on inventory adjustments after a purchase return?
Because the goods left at the current average while the supplier payable was reduced at the original invoice price. The difference is deliberately booked to adjustments so stock matches the ledger.