# Purchases and bills

> Record supplier bills as purchases — lines, per-line accounts, tax and reverse charge — finalize them to post, then track and pay them.

Canonical: https://docs.getonebooks.com/purchases/bills/
Language: en
Documentation index: https://docs.getonebooks.com/llms.txt

A purchase records a supplier's bill (or your purchase order). As a **draft** it is editable and posts nothing; **finalizing** it means you have received the goods or accepted the bill — the cost, the input tax and the amount owed are posted, and the bill appears in payables.

![The Purchase Orders list with Create Purchase and status filters](https://docs.getonebooks.com/screenshots/en/purchases-list.webp)

## Create a purchase

1. Open **Purchasing → Purchases** and select **Create Purchase** (or **Quick Create → Purchase**).
2. Pick the **supplier**. Add the **supplier reference** (their invoice number) and check the **due date**, which defaults from the supplier's payment terms.
3. On the **Item Details** tab, add lines: an **item** from your catalog (its cost price and tax fill in) or a description, plus quantity, unit price and tax %.
4. On the **Account Details** tab, choose which account each line posts to — see below.
5. Add a discount and notes if needed, then **Save as Draft** or **Save PO**.

![The New Purchase form on the Item Details tab](https://docs.getonebooks.com/screenshots/en/purchases-new.webp)

### Which account each line posts to

By default every line posts to **5000 Cost of Goods Sold**. On **Account Details** you can route a line to any expense or asset account instead — a laptop to **1500 Fixed Assets**, a marketing invoice to **5300 Marketing & Advertising**. Tax and the payable are unaffected by the choice.

![The Account Details tab with an account picker per line](https://docs.getonebooks.com/screenshots/en/purchases-new-account-tab.webp)

### Reverse charge and India

Switch on **Reverse charge** for supplies where you must self-assess the tax (imports of services, GST reverse-charge purchases). Indian businesses also record the **supplier GSTIN** and **place of supply** for GSTR-3B. See [India](https://docs.getonebooks.com/tax/india/).

## Finalize

Open the draft and select **Finalize**. The status becomes **Received**, the number is final and the entry is posted.

![A draft purchase with the Finalize action](https://docs.getonebooks.com/screenshots/en/purchases-receive.webp)

> **Accounting effect**
> Debit **5000 Cost of Goods Sold** (or the account chosen per line) for the net amount · Debit **1300 VAT Receivable** for the tax · Credit **2000 Accounts Payable** for the total · Credit **4300 Discount Received** for any discount. With reverse charge: Debit **1300 VAT Receivable** and Credit **2110 RCM VAT Payable** for the self-assessed tax.

## After finalizing

![A received purchase with amount paid, balance due, Record Disbursement and View Journal Entries](https://docs.getonebooks.com/screenshots/en/purchases-detail.webp)

- **Record Disbursement** — pay the bill; see [Supplier payments](https://docs.getonebooks.com/purchases/supplier-payments/).
- **Attachments** — attach the supplier's PDF bill.
- **View Journal Entries** (Accountant mode) shows the posted lines.
- **Void** — reverses a received purchase that has no payments or returns (permission **purchases.void**).

## Statuses

**Draft** → **Received** → **Partially Paid** → **Paid**; **Void** for a reversed purchase.

## Related

  - [Purchase returns and debit notes](https://docs.getonebooks.com/purchases/purchase-returns/)
  - [Expense accounts](https://docs.getonebooks.com/expenses/accounts/) — The accounts you can route lines to.