🧭 The purchase cycle: from supplier to cleared payable

Beginner · 10 min · Purchases

Follow one purchase from adding the supplier to paying them: supplier, purchase bill, stock in, supplier payment and a cleared payable.

Why and when you use it

Buying is where most stock and GST errors start. Doing the steps in the right order makes sure stock goes up once, input GST is matched to the supplier's bill, and you never pay the same bill twice. This is the routine for every new supplier and every incoming load.

Before you start

Products added in Inventory with unit, GST rate and HSN
Bank account set up in your books

Step by step

SupplierIn Suppliers, press Add Supplier, enter the name, GSTIN and opening balance, and Save Supplier.
Purchase billIn Purchases, press + New Purchase Bill, pick the supplier, copy the Supplier Bill Number, Date and Amount, add the products and Save Purchase Bill. To save typing, use Photo Invoice to read the bill photo into a draft and check it.
Stock inSaving the bill brings the goods into stock. Check the item's Stock and Stock movements in Inventory; do not add the same goods again with Stock Adjustment.
Returns, if anyIf some goods are damaged, record them in the Purchase Returns tab before you pay.
Pay the supplierUse Record Supplier Payment in Purchases, or Record Payment in Payments with the type Payment (to Supplier). Match it to the bill and save.
Payable clearedOpen Accounts Payable or the Supplier Ledger and check that the supplier's balance is what you expect.

Worked example

Sharma Traders receives 100 cartons of instant noodles from Hindustan Foods Pvt Ltd, Delhi, on bill HFP/4471 for ₹94,000 and pays it in full by bank transfer 15 days later.

Suppliers: Hindustan Foods Pvt Ltd is already added with its Delhi GSTIN.
Photo Invoice: upload the bill photo; the draft shows 100 cartons at ₹800, IGST ₹14,400 and ₹400 discount. Correct anything misread and confirm.
Purchases: the bill is saved with Supplier Bill Amount ₹94,000 and Balance ₹94,000.
Inventory: Instant Noodles stock goes from 20 to 120 cartons; Stock movements shows the purchase.
On 26 Nov 2026, Record Supplier Payment of ₹94,000 from the current account; Save Payment.
Accounts Payable: the HFP/4471 bill no longer shows as unpaid.

Result: Stock is up 100 cartons, IGST input of ₹14,400 is ready to match against GSTR-2B, and the ₹94,000 payable is cleared.

💡 Tips

Photo Invoice is the fastest way to enter long bills; always check quantities and rates before confirming.
Check ITC Reconciliation (GSTR-2B) each month to make sure your suppliers have filed the bills you paid.
Pay from Accounts Payable on a fixed day each week.

⚠️ Common mistakes

Adding stock with Stock Adjustment and also saving the purchase bill, so stock is doubled.
Paying the full bill before recording a purchase return, then having to chase the supplier for a refund.

Questions

Can I enter a bill before the goods arrive?

It is better to record the bill when the goods are received, so stock and the bill match.

🎬 Video walkthrough (script — recording coming soon)

Scene 1: The cycle: supplier, purchase bill, stock in, payment, payable cleared.
Scene 2: Check the supplier in Suppliers.
Scene 3: Upload the bill in Photo Invoice and review the draft.
Scene 4: Show the saved bill in Purchases and the stock rise in Inventory.
Scene 5: Record Supplier Payment.
Scene 6: Accounts Payable shows the bill cleared.