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Coworking:Purchase Invoice

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Purchase invoice window allows to register and manage supplier's invoices.

A purchase invoice is an itemized statement of the goods or services provided by a vendor or supplier. It indicates the quantity and price of each product or service provided or to be provided.

Normally the "finance" team is in charge of managing this stage of the chain, which usually comes after "Goods Receipts" booking and management.

Suppliers could send the corresponding purchase invoice/s together with the delivery note/s attached to the goods, that implies that a "Purchase Invoices" can been automatically generated
from the "Goods Receipt" window, but it could be that is not the case, therefore a purchase Invoice can also be created from scratch in the "Purchase Invoice" window.

The purchase expenses can be recognized as soon as the purchase invoice is accounted, however if an expense deferred plan is configured it is possible to deferred the expense recognition as required.


Supplier invoices can be registered, booked and managed in the header section of the purchase invoice window.

Header lists the main terms and conditions related to the purchase invoice.

In majority of the cases main (and the only) field needed to create a new purchase invoice document is the Business Partner field. All other fields will be pre-filled automatically based on the selected Business Partner, logged in User preferences and other system default parameters.


Some other fields to note are:

There are 3 ways of entering lines into the purchase invoice, two of them from the invoice header and the last one from the Lines tab:

  1. Selecting products from pending to be invoiced orders or receipts using the Create Lines From button
  2. Copying all products from the chosen invoice selected in the history of all invoices for different business partners using the Copy Lines button.
  3. Manually, line by line in the Lines tab. This option is used if the underlying document (Purchase Order or Goods Receipt) does not exist in the system prior invoicing takes place.

The Complete button finishes the creation of the invoice document with the fulfillment of the Payment Plan tab and the Payment Monitor section in the Header. If there are non-stockable BOM products in the lines and they have not been exploded, the Complete button will explode them automatically.

Once completed a purchase invoice can be:


Once the purchase invoice header has been properly filled in and saved, each purchase invoice line can be registered in this tab one by one.

Lines list each product to be purchased and its characteristics.

The fields to note are:

As already mentioned purchase expenses can be deferred therefore they are not recognized at the purchase accounting date but within a given number of accounting periods.
When a purchase invoice line is created, it is possible to define at line level, whether the line is going to cause the expense to be deferred. The relevant fields are:

These fields can be defaulted if configured for the product.
If an expense plan is configured that implies a specific purchase invoice accounting.

Explode button is shown when selecting a line with a non-stockable BOM product and the product is not already exploded. When exploding a product, the bill of materials components the selected product consists of are shown in the invoice. Once you have exploded it, you cannot comprime it. You should delete all the lines (first bill of materials components and then the BOM product), and insert again the non-stockable BOM product.

Match LC Cost button is shown when purchase order line contains either an "account" or a "product" setup as landed cost type.

This process button allows to match both the "estimated" landed cost booked in the landed cost window, and the one being invoiced in the invoice line. Both ones needs to be of the very same landed cost type.

Once selected "Match LC Cost" button opens "Match LC Cost" pick and edit window.
This window allows to pick the corresponding landed cost, enter an amount to match in the field "Matched Amt", and then select "Process Matching" check-box.
Note that if the "Process Matching" check-box is not selected here, landed cost matching will have to be processed in the landed cost window by using Process Matching button. (See scenario 3).


It is important to remark that the "estimated" landed cost booked in the landed cost window can be of the very same amount than the one being invoiced or not.
"Is matching adjusted" Check-box allows to create an additional landed cost adjustment if checked, in order to add/remove that difference from the product cost.

In Summary:

Line Tax

Line tax information is automatically populated for each purchase invoice line upon completion of the invoice.

Line tax tab informs about each purchase invoice line:

It is not possible to either manually create a new line or modify existing ones.


Summarized purchase invoice tax related information is shown in this tab.

Therefore, there will be as many records in this tab as tax rates used. Each record will show summarized information about:

It is possible to add new line/s for a given tax (tax rate) selected, by entering:

Payment Plan

The payment plan tab lists the scheduled payments expected against the invoice.

The payment plan of a non paid invoice can be changed:

For more details please review the Invoice's Payment Plan article.

Payment Details

This tab displays the details of the payments made against the invoice.

Reversed Invoices

This tabs allows the user to select the invoices (if any) being reversed by the invoice being created. When the user voids an existing invoice the reverse invoice is automatically created by Openbravo and linked to the original invoice being reversed. In case of creating a Credit Memo or Reverse Purchase Invoice which partially voids an existing invoice/s, the user must manually select the invoice/s being reversed in this tab.

As already described purchase invoices can be reversed without any problem, if required.

If a purchase invoice is totally voided:

If a purchase invoice/s require to be partially voided:

Exchange rates

The exchange rate tab allows to enter an exchange rate between the organization's general ledger currency and the currency of the supplier's invoice to be used while posting the invoice to the ledger.

Openbravo allows to manage different currencies within an organization or business unit.

Nowadays, it is very common for the organizations located in a country to make business with third parties located abroad, and even more, it could also happen that an organization needs to post the transactions to general ledgers configured in different currencies.
To learn more visit General Ledger Configuration.

Above described business scenario, implies the need of managing exchange rates between the organization's general ledger currency and the supplier's invoice currency to be used while posting the supplier's invoice to the ledger/s.

This tab allows you to enter:

Additionally, Openbravo has a "central" repository of exchange rates which are used in case there is no an exchange rate defined at document level.


Payment/s can be made against a purchase invoice by using the Add Payment button which opens the Add Payment window.

Purchase Invoice AddPaymentOut 0.png

As shown in the image above Openbravo shows a new window named "Add Payment". This window is split into four sections:

Adding Order/Invoices

If the "Add Payment" window is opened from a "Purchase Invoice", all invoice scheduled payments are selected by default if there are more that one, and the "Expected Payment" amount is set as equal as the "Invoice Amount", and the "Transaction Type" field is set to "Invoices". See image below:

Purchase Invoice AddPaymentOut 1.png

The reason for the above is that Openbravo understands that the invoice is going to be fully paid, but obviously that could not be the case. Therefore:

Purchase Invoice AddPaymentOut 2.png

As shown in the image above, in the case actual payment amount is less than the grand total, the difference or outstanding amount left to be paid is shown in the grid line and this amount is consider as an underpayment. On the other hand, that difference can be "Written-off" by just checking the field Writeoff next to the field "Amount". If that is the case:

Purchase Invoice AddPaymentOut 3.png

Adding G/L items

GL Items section allows to enter any type of expense related to the payment but do not included in the invoice, by clicking on [Add New] .

First thing to do is to select the G/L item for the expense and then enter the expense amount in the field "Paid Out" as shown in the image below:

Purchase Invoice AddPaymentOut 4.png

Note that accounting dimensions such as "Project" can be shown depending on the Accounting Dimensions defined for the Client.

Once done,

Purchase Invoice AddPaymentOut 5.png

Reviewing the totals and processing the payment

As already mentioned, "Totals" section allows to review:

Purchase Invoice AddPaymentOut 6.png

And also, "Totals" section allows to process a payment by selecting an option in the field "Action Regarding Document". The options available are:

The options above depends on the setup of the payment method:

Finally any of these actions updates Payment Monitor section of the Invoice Header. The Paid amount is also reflected in the Payment Plan tab of the Purchase Invoice (and the Purchase Order if it exists). Details of the payment can be found in the Payment Details tab.

Credit Payments

Whenever there is available credit for a vendor a new window is automatically open upon completion of a new vendor's purchase invoice in order to allow the user to either select the credit available to pay that new invoice or not.
Select Credit Payments.png

Moreover it is also possible to use the available credit generated for that particular vendor later on while "Adding a Payment" for that vendor.

If that is the case a new section is shown in the "Add Payment" window, that is "Credit to Use" section. See image below:

Purchase Invoice GeneratedCredit 1.png

"Credit to Use" section shows all credit payments created for a given vendor (if more than one), therefore it is possible to select one or more, and even change the credit amount to be used for the payment, in the field "Payment Amount".

Once the payment is processed, a new payment is created in the Payment Out window. That payment states at the very top the "Used Credit" amount.

Payments in multiple currencies

Openbravo allows to make payments in a different currency than the financial account currency.

For getting that working the payment method assigned to the financial account used to make the payment needs to be configured to allow so, that implies to select the check-box "Make Payments in Multiple Currencies".

Let's take for instance an organization such as "F&B US Inc".
This organization is located in USA, therefore it is likely that the organization's general ledger currency as well as the financial account currency is set as USD.

F&B US Inc makes business with a supplier located abroad. This supplier issues its invoices in EUR currency (therefore a Price List in EUR will then be needed) and requires to be paid in EUR currency. This means that:

Purchase Invoice AddPayment ExchangeRate.png

Once the payment is processed, a new payment out will be created in the Payment Out window.
This payment will clearly states "Paid" amount in EUR currency as well as "Paid" amount in USD currency, together with the exchange rate used.


Accounting information related to the purchase invoice

For more details please review the accounting article.

A purchase invoice can be posted to the ledger when required at a given "Accounting Date" by using the process button "Post".

Purchase invoice posting creates the following accounting entries:

Account Debit Credit Comments
Product Expense Line Net Amount One per invoice line
Tax Credit Tax Amount One per tax line.
Discount Product Expense Discount amount One per invoice line (if discount exists)
Vendor Liability Total Gross Amount One per invoice

Same way, a Purchase Invoice including a purchase invoice line with an expense plan configured creates the following accounting entries.
For instance a company purchasing a business insurance for the duration of a year would want to distribute that expense over 12 months.

Posting record date: Accounting Date:

Account Debit Credit
Product Deferred Expense Line Net Amount
Tax Credit Tax Amount
Vendor Liability Total Gross Amount

Posting record date: Accounting Date + 1 month:

Account Debit Credit
Product Expense Line Net Amount/12
Product Deferred Expense Line Net Amount/12

Posting record date: Accounting Date + 2 months:

Account Debit Credit
Product Expense Line Net Amount/12
Product Deferred Expense Line Net Amount/12


Posting record date: Accounting Date + 12 months:

Account Debit Credit
Product Expense Line Net Amount/12
Product Deferred Expense Line Net Amount/12


It is possible to totally void a purchase invoice, by using the header button "Reactivate" and then selecting the action "Void".
This action creates a new document that reverse the invoice.

Void action allows to specify a "Void Date" and a "Void Accounting Date" for the new document that reverse the invoice.

Both "date" fields above take the current date as default date and validate that the dates entered are not prior to the invoice date and the invoice accounting date, respectively.

Overall "Void" action implies that:

The reversed document posting creates the following accounting entries:

Account Debit Credit Comments
Product Expense Line Net Amount One per invoice line
Tax Credit Tax Amount One per tax line.
Vendor Liability Total Gross Amount One per invoice

And it is also possible to partially void a supplier invoice by:

The "AP Credit Memo" posting looks the same as the "Reversed Purchase Invoice" posting.

The main different between those two purchase reversed document types is:

We strongly recommend you to use the "Reversed Purchase Invoice" document type while partially voiding supplier's invoices.

Full list of Purchase Invoice window fields and their descriptions is available in the Purchase Invoice Screen Reference.

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