How To Post A Purchase Invoice In Xero
Step 1:
To correctly reflect your purchase invoices & total amount payable within Xero you will need to extract the information from the invoice and post/submit this within Xero.
Information from invoices can either be manually inputted into Xero or Extracted digitally via a dedicated software. Software such as Dext or Hubdoc.
Step 2:
To post a new manual purchase invoice into Xero you will need to access Xero>Business>Bills to pay>new bill.
Step 3:
This will open a new template to manually input the purchase invoice information. From this template, you will be able to input Supplier name/Date of invoice/due date/invoice reference/ currency/ unit quantity/ Unit price/ type of purchase/Tax amount.
Once all of the data has been manually extracted into Xero the template (Draft invoice) can be approved. Once this has been approved the invoice has been submitted into your accounts and will reflect the data put.
Step 4:
Once an invoice has been submitted, you can now upload a PDF version of the invoice for record-keeping. You can access by Selecting the folder paper in the top right-hand corner of the approved invoice
From here select upload files. This will allow you to browse your current files within your computer database and upload any relevant files related to the invoice.
Step 5:
Now you have an approved purchase invoice within Xero, this will prompt additional commands in relation to the new invoice just posted. You can find this in the top right corner of the invoice under the drop-down “Bill options”
The dropdown will give you access to the following
- Repeat bill. Repeat bill will allow you to create a reoccurring bill given the information provided for a set period. This is ideal for setting up bills on a monthly direct debit or standing order.
- Void. This will allow you to delete the bill posted to the accounts.
- Copy. This will allow you to extract the information provided in the bill and copy them into a newly created bill template.
- Edit. This will allow you to edit the data within the approved bill potentially for mistakes or miss postings. You must re-approve the bill if you edit the information.
- Add Credit Note. It will allow you to post a credit based on the data of the original bill approved.
Step 6:
Also once approved and posted this will prompt a command “make a payment”. You can find this at the bottom of your bill.
You can mark when a bill has been paid. Enter the paid amount (in full or partial), the payment date, the bank account used, and a payment reference.
Once the information has been entered, “add payment” will post the payment against the bill and this will now be marked as paid.
If you are unsure how to use Xero, we offer a comprehensive training touching all the most important parts you need to use it the most efficient way. You can read more about it here.
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