Purchasing Invoice Tab

For the Other Action Menu options (press F9 or the Other Actions Menu on the Button Bar) see Purchasing Other Actions Menu.

Purchasing Invoice Tab Overview

The Purchasing Invoice screen is usually used to check (or match) invoices that have been created via delivery notes against the suppliers invoice and then post the invoice to the accounts. Invoices are usually created from delivery notes as this will create an invoice based on items delivered rather than items ordered. However, users can also create invoices from the original purchase order as follows:

  1. On an individual purchase order basis by ticking the Create Purchase Invoice checkbox in a purchase order; or
  2. As the default for all purchase orders created by ticking the 'Purchase invoice created from Purchase Order (or Note)' checkbox in [ System Values | Accounts | General | Purchases ].
    Note: purchase order invoices are only used for stock items; payments for services for example computer equipment, utility bills etc, should be created via the SP Ledger.
  3. If you are not using consignments and wish to amortise the cost of duty and shipping across your stock items, this can be added to the Purchase Invoice screen. Please email Development if you wish this option to be on your system. Please see How To: Amortise Cost of Freight and Duty on Purchase Invoices

For a visual guide of where the purchase invoice fits into the purchasing process see the Purchasing Process.


Once a Purchase Invoice has been posted the associated Purchase Order(s) and Delivery Note(s) are not editable.


Existing purchase invoices can be loaded by double-clicking on them in the Purchase Invoices List Tab.

The screen consists of six areas:

Invoice Details

  • Invoice Ref: (max 20 characters) used to record the suppliers invoice reference. Defaults to 'NONE'. It is displayed in the tax register screen.
    Note: if there is an existing Purchase Invoice with the same Invoice Ref for the same supplier then a dialog will be displayed asking if the user wishes to continue as this would indicate that a duplicate Purchase Invoice has been created.
  • Invoice ID: automatically assigned by the system. This value cannot be changed and is used in the accounts section as a reference to the originating document.
  • PO Code: the code for the purchase order the invoice is related to.
  • Invoice Date: used to record suppliers invoice date. This is the date that will be used to post the purchase invoice to the purchase ledger.
  • Terms (days): your terms with your supplier that works with the type of terms field below to indicate the number of days the type relates to.
  • Terms (type): your terms with your supplier that works with the number of days as defined in the field above, for example 30 days from invoice date, month end or months.
    Notes:
    1. Both the Terms (days) and the Terms (type) are populated from the [ Supplier | Detail | Financial ] screen.
    2. Any changes here will affect the current purchase invoice only and not the supplier's terms in their [ Supplier | Detail | Financial ] screen.

Invoice Amounts

  • Net Total: net total of all items listed within the grid and including delivery.
  • Tax Total: VAT total of all items listed within the grid.
  • Delivery: delivery cost of purchase order. This is an editable field in the purchase invoice.
  • Delivery Tax: the amount of delivery tax.
  • Invoice Total: sum of Net Total, VAT Total and Delivery.
  • Amount paid: the amount from the related purchase order that has been pre-paid.
  • Less than £135 (default=unticked): if the value of the whole consignment, not just the items that are being booked in, is under £135 this option should be ticked.
    Note: the £135 is for the whole consignment, for example, if you order 10 items at £50 each, and delivered 2 of them, you would be still over the £135 as the whole consignment is worth £500.
  • EU Import into NI (default=unticked): If you are trading from NI and importing goods from the EU, this option should be ticked. The VAT is accounted for in the same way as it was before Brexit.


Options

  • Auto Calculate checkbox: when ticked the system will automatically calculate VAT totals etc. If unticked then the Adjust Net Value, Adjust Tax Value buttons, Grid 'Net Total' and 'Tax' will all be light grey and available for edit. If ticked then the Adjust Net Value, Adjust Tax Value buttons, Grid 'Net Total' and 'Tax' will all be dark grey and NOT available for edit.
  • Credit Note checkbox: marks the invoice as a purchase credit note.
    Note: purchase credit notes are created from Supplier Returns.
  • Post Invoice checkbox: used to finalise the invoice and post it to accounts.
    Note: invoices can be created and saved but will not be posted to the accounts until this box is ticked.
  • Taxable checkbox: marks the items as taxable (some orders may not be taxable, e.g. from the United States).
  • Delivery Tax checkbox: indicates whether the delivery charge is taxable and if it is will populate the adjacent Delivery Tax field.
  • Import VAT Calc (default=ticked): This controls if EC / VAT is calculated or not and is only visible for non-UK invoices.
  • Import VAT: if the Import VAT Calc checkbox is ticked, then this is the amount of VAT that the system has worked out as either PVA or RC.


  • RC Service: This is used to record VAT on services received from overseas suppliers as this can be considered as a reverse charge. It will appear on the UK VAT Return as two entries for the same amount; one for a sales invoice and the other for a purchase invoice. Examples are if you use overseas shipping agents, legal services or translation services.
    Note: For both EC/RC Tax and RC Tax we recommend that you take advice/guidance from HMRC to make sure this is applicable to your situation.
  • VAT Reported: if the purchase invoice is on a processed VAT Return, this checkbox will be automatically ticked by the system and the purchase invoice will no longer be editable.
  • Allow Zero Terms: If there is an requirement for the ‘Terms (days)’ option to be changed to zero rather than the default for a Purchase Invoice, then in addition to the ‘Terms (days)’ value being changed to 0, the ‘Allow Zero Terms’ option must be ticked.
  • BtnAdjustNetValueX.jpg: when the 'Auto calculate' checkbox is unticked the user can use this button to tweak the Net value on the purchase invoice.
  • BtnAdjustTaxValue.jpg: when the 'Auto calculate' checkbox is unticked the user can use this button to tweak the Tax value on the purchase invoice.
  • BtnShowJournalX.jpg: displays the Related Journal Entries Dialog showing the journal entries for invoices that have been posted.
    Notes:
  • Import Tax button in Purchase Invoices: (only be displayed for purchase invoices from EU and RoW suppliers) It loads the wizard allowing you to check that the purchase invoice tax has been appropriately dealt with, see How To: Post a Purchase Invoice for an EU Consignment worth less than £135 and How To: Post a Purchase Invoice for an EU Consignment worth more than £135.
    1. When the values posted against a purchase invoice are changed, the original journal is reversed and deleted; a completely new journal is then created and posted.
    2. The values posted against a purchase invoice can be changed, up until the purchase invoice has been committed to the VAT register.


Invoice Note

Allows the user to add a note to the invoice. By default the system adds the first order line on the invoice, this in turn will be used as a note against the nominal accounts when the invoice is posted if the Auto Add Purchase Invoice Note checkbox has been ticked.

Supplier

Purchasing Invoice Grid

  • Stock:
    • Code: the item's stock code.
    • Description: description of stock item.
  • Quantity:
    • Bought: quantity of stock items to be paid for.
    • x Qty: the ((Qty / Reorder Multiple) rounded up) x Reorder Multiple (from [ Stock | Detail | Properties ]). If the quantity ordered is not divisible by the Reorder Multiple then it will be highlighted.
      Note: amending the Reorder Multiple against the stock item will change all current and historic Purchase Orders, Delivery Notes and Purchase Invoices immediately.
  • Prices:
    • Grs Unit: gross cost, per unit (i.e. Net + VAT).
    • Net Unit: net cost, per unit.
    • Disc%: different discounts can be applied to each purchase order line. The 'Disc%' column displays the discount as a percentage and any quantity entered here will automatically populate the corresponding 'DiscL' column.
    • Disc L: displays the discount as a value and any quantity entered here will automatically populate the corresponding Disc% column.
    • Net Total: total net cost in £s of items on the order line. If 'Auto Calculate' is unticked then the field is fully editable.
    • Tax: total VAT cost in £s on the order line. If 'Auto Calculate' is unticked then the field is fully editable.
    • Grs Total: total gross cost (net + VAT) in £s of the order line.
  • Supplier Ref: the supplier reference as set against the stock item in the [ Supplier | Detail | Supplier Summary | Supplier Stock ] and [ Stock | Detail | Suppliers ] screens.

Purchase Order Grid Totals

Whilst the Grid Totals row can be set to display either Averages or Totals for most columns in the grid, the "Grs Unit" and "Net Unit" columns will always display averages.

Purchasing Invoice Grid Context Menu

  • Goto Stock Item...: opens the [ Stock | Detail | Properties ] screen for the stock item the user is currently focused on.
  • Goto Delivery Note...: opens the delivery note linked to the purchase invoice.
    Note: this link is only available from here if the purchase invoice was created from this document.
  • Goto Supplier Return...: opens the supplier return if the purchase invoice is a credit note.
    Note: only available from here if there is a linked supplier return.
  • Goto Purchase Order...: opens the purchase order linked to the purchase invoice.
    Note: this link is only available from here if the purchase invoice was created from this document.
  • Goto Supplier...: opens the [ Supplier | Detail | General ] screen for the supplier linked to the purchase invoice.
  • Goto Purchase Manager...: opens the Purchase Manager filtering on the purchase invoice using the Invoice Ref field.
  • Show SRNI Journal: if the 'Stock Received Not Invoiced' option is ticked in [ System Values | Accounts | General | General ] and the invoice has been posted, then this option will open the Related Journal Entries dialog showing the double-entry information for the Purchase Invoice.
  • Enter Settlement Discount: allows you to enter an amount in the base ledger currency that the purchase invoice is being discounted by. It does not affect the purchase invoice directly, but creates a credit entry on the purchase ledger (the supplier's statement) for the discounted amount, which is allocated to the purchase invoice automatically by the system, thereby reducing the overall outstanding balance.
  • Revert Prices (from Source): revert all prices on the purchase invoice back to the prices as defined on the delivery note.
  • Colour Legend: displays the colour legend indicating what the colours mean;

Purchase Invoice Colour Legend Dialog

  • Apply Value Range: allows the user to specify a value that is to be applied to all of the currently selected rows/items for the current column.
  • Clear Selection: deselects the currently selected line(s).

EC VAT on Purchase Invoices

When you enter edit mode for a purchase invoice for an EC Supplier, three additional options appear in the Options area:

  • EC Auto Calc checkbox (default=ticked): the system will automatically calculate EC VAT sales.
  • Sc PurchaseOrder ECtaxableX.jpg: this button must be used and the questions answered (see below) to ensure that VAT is appropriately accounted for in the Tax Register.
  • EC VAT Amt: displays the amount of VAT, if the 'EC Auto Calc' checkbox is not ticked then the user can manually enter an amount.

EC Taxable Questions

1. Your VAT Number is present on Supplier Invoice and they have NOT charged VAT

No Tax calculated on the Purchase Invoice in Khaos Control; Tax will be posted (and reclaimed) to the EC Tax Register and VAT Return but not to the Purchase Ledger (Suppliers Statement).

This is how this appears on the VAT return form:

Net amount in Box 9 
Tax amount in Box 2 (increases your VAT liability)
Tax amount also added Box (decreases your VAT liability, cancelling out the above)
Net tax to pay = 0 
Net tax to reclaim = 0 
But you declared the VAT on the return job done.

2. Your VAT Number is NOT present on Supplier Invoice and VAT is charged

Tax will be calculated and the order will be treated as a UK purchase, appearing as part of the UK Tax information in Khaos Control Accounts, effectively creating a new VAT-chain so that you can reclaim the VAT.

3. If neither of the above then your supplier has done something wrong

Rolling Up Purchase Invoices

It is possible to roll up purchase invoices in Khaos Control. This is something that is flagged per supplier, see How To: Create Cumulative Purchase Invoices. For every supplier flagged thus Khaos Control will roll up purchase invoices that are created. Purchase invoices roll up until the invoice is posted (selecting the 'Post Invoice' tick-box and clicking BtnSave.jpg Ctrl+S. Once the rolled-up invoice is posted Khaos Control will start a new purchase invoice and this will roll up and so on and so forth.
Note: it is important to note with this functionality that before you start to use it you'll need to ensure that you don't have any outstanding Invoices for the suppliers you're switching it on for.


See Also


Did you find this article helpful?