The supplier of goods issues a purchase bill to its customers for the goods he has purchased, indicating the amount payable. The primary purpose of issue of a purchase bill is to maintain a record of sales made.
Uses of purchase invoice or purchase bill
Whenever a customer buys goods, the vendor must give a purchase bill to the customer stating the description of the goods, its price, tax and other such details. Vendors can use simple purchase invoice templates to create professional-looking and customised invoices for their customers.
Some of the uses of a purchase invoice are:
- Serves as proof of the goods sold.
- Provides information to the customers regarding goods purchased and the amount payable.
- Indicates the amount owed by the customers against the goods purchased.
- Helps for financial reporting purposes.
- Helps to maintain client information.
Need to create purchase bills on accounting software
Creating purchase invoices through accounting software is very useful in many ways:
- Invoices are recorded in the accounting software, which helps in the creation of various MIS reports. This further helps in analysing customer needs and anticipating future sales.
- Customer data can be stored in the accounting software, which helps in data entry when creating invoices. It saves time and effort.
- The accounting software helps to customise the bill as per business requirements.
- All the product details can be stored in the accounting software. These details are auto-populated at the time of bill generation.
- It helps in financial reporting purposes and streamlines the business’s billing process.
How to create a purchase bill?
Below are the steps to create a purchase bill:
- Choose a suitable purchase invoice template.
- Place the company’s logo and customise it as per its business requirements.
- Add the details of products sold with their description and price.
- Update customer details such as name, address and contact details.
- Update the total amount payable along with tax details.
- Mention the payment modes accepted.
- Save the bill. One can use excel formats for better tracking purposes.
Details that purchase bills must have
Purchase bills must contain the below information:
- Invoice number and invoice date
- Customer name and GSTIN
- Shipping and billing address
- Supplier’s GSTIN
- Place of supply
- HSN code/SAC code
- Product details, i.e. the description of goods sold, quantity, unit, total value
- Taxable value
- Discounts given
- Rate and amount of taxes, i.e. CGST/SGST/IGST
- Mention if GST is payable on a reverse charge basis
- Signature of the supplier
Try ClearOne for creating professionally designed invoices, and you can also customise invoices as per your business requirements.