How To Post A Purchase Invoice In Xero.
By James Harrison
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 Receipt bank or Hubdoc.
To post a new manual purchase invoice into Xero you will need to access Xero>Business>Bills to pay>new bill.
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.
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.
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 perfect for bills you know are set up monthly on direct debit/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. The bill will need to be re-approved if the information has been edited.
Add Credit Not. Add credit note will allow you to post a credit based on the data of the original bill approved.
Also once approved and posted this will prompt a command “make a payment”. This can be found at the bottom of your bill.
This will allow you to mark when a bill has been paid. Here you can enter the amount paid (In full or part paid) The date it was paid, The bank account it was paid from, 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.
James Harrison’s role at Northern Accountants is as a financial controller. He ensures that our clients are provided with the information and knowledge to help them make better business decisions. James loves helping clients by adding value to businesses by assisting with the day to day running of finance, on all levels.