A purchase invoice is a bill received from a supplier for goods or services provided to your business. It creates an accounts payable obligation until paid.
A purchase invoice (also called a supplier invoice or bill) is the document you receive when a supplier wants payment. It is the mirror of a sales invoice - your customer's sales invoice is your purchase invoice. Recording purchase invoices promptly is important for accurate financial reporting, cash flow planning and GST/VAT compliance. Under accrual accounting, the expense (or asset purchase) is recognised when the invoice is received, not when it is paid. The purchase invoice creates an accounts payable entry that is cleared when payment is made. Key information includes supplier details, invoice number, date, description of goods or services, quantities, prices, GST/VAT amounts and payment terms. In Xero, purchase invoices are recorded as bills. SortBooks shows which bank payments match recorded bills, so you can reconcile them in Xero in a click and keep the accounts payable balance current.
SortBooks helps with the bookkeeping behind purchase invoice by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing purchase invoice by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
A bill (also called a supplier invoice or purchase invoice) is a document received from a supplier requesting payment for goods or services they have provided to your business.
Accounts payable (AP) represents the money your business owes to suppliers and vendors for goods or services received but not yet paid for. It is a current liability on your balance sheet.
An invoice is a document sent to a customer requesting payment for goods or services provided. It includes details of the transaction, payment terms and the amount due.
Accrual accounting records revenue when earned and expenses when incurred, regardless of when cash changes hands. It provides a more accurate picture of your financial position than cash accounting.
A purchase order (PO) is a formal document sent to a supplier authorising a purchase. It specifies the items, quantities, agreed prices and delivery terms.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.