Steps to create a purchase bill

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:

1. Choose a suitable purchase invoice template.
2. Place the company’s logo and customise it as per its business requirements.
3. Add the details of products sold with their description and price. 
4. Update customer details such as name, address and contact details.
5. Update the total amount payable along with tax details.
6. Mention the payment modes accepted.
7. 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:

1. Invoice number and invoice date
2. Customer name and GSTIN
3. Shipping and billing address
4. Supplier’s GSTIN
5. Place of supply
6. HSN code/SAC code
7. Product details, i.e. the description of goods sold, quantity, unit, total value
8. Taxable value
9. Discounts given
10. Rate and amount of taxes, i.e. CGST/SGST/IGST
11. Mention if GST is payable on a reverse charge basis
12. Signature of the supplier

Try ClearOne for creating professionally designed invoices, and you can also customise invoices as per your business requirements.