Turning a purchase order into a bill

When the supplier's goods (or the job) arrive with their invoice, record the bill from the purchase order instead of typing it again. The bill starts as a copy of the order; you correct anything that changed, and saving the bill is what receives the stock and records what you owe.

Before you start

• You need the right to record purchases.
• The order must be saved and, if your company uses approvals, approved. An order awaiting approval has no Convert to Bill button.

Steps

1. Open the order under Purchases → Purchase Orders (or Job Orders).
2. Press Convert to Bill. A new bill opens, filled in from the order: supplier, department, items, quantities, costs and taxes. A note under the title says Billing purchase order …. Nothing has been saved yet.
3. Compare it with the supplier's invoice and correct anything that changed: a different cost, a short delivery, an extra charge, the store each line is received into.
4. Add a payment if you paid on the spot (otherwise the bill is on credit).
5. Press Save. Only now is the stock received, the bill recorded, and the order marked Consumed (billed).

Tips

• Changed your mind? Press Cancel on the bill: the order stays open, exactly as it was, and can be billed later.
• The saved bill shows From purchase order … under its title.
• If the bill is deleted, the order goes back to open and can be billed again.

Common problems

The Convert to Bill button is missing. The order is not saved yet, is awaiting approval (or was refused), or has already been billed (it shows Consumed).

"Purchase order … has already been billed." Someone saved a bill for it already (perhaps in another window). Open Purchases → Bills to find it.

"Purchase order … is not approved, so it can't be billed yet." The order needs approval first. See Approvals.

The order says Consumed but I can't find the bill. A bill exists for it. Search Purchases → Bills for the order's reference; deleting that bill releases the order.

"… has no expense account, so this bill can't be posted to the books." A service or non-stock item on the bill (a sub-contractor's work, transport, repairs) needs an expense account, so the system knows which cost to charge. Open the item in Products & Services, choose its Expenses Account (for example Cost of Sales - Sub-contractors), save it, and then save the bill again. Stock items don't need one; they go into the store instead.