# Purchases overview

> How suppliers, purchases (bills), debit notes, supplier payments and payables fit together, and when each one posts to the ledger.

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

The **Purchasing** group mirrors Sales from the other side: what you buy on credit, what you owe, and what you pay. Cash spending without a supplier bill goes through [Expenses](https://docs.getonebooks.com/expenses/record/) instead.

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

## The purchasing cycle

| Step | Document | Posts to the ledger? |
|---|---|---|
| Receive goods or a supplier's bill | **Purchase** | Yes, when **finalized** (received): cost or asset, input tax, payable. |
| Pay the supplier | **Supplier payment** | Yes, when recorded: payable against cash or bank. |
| Send goods back or the bill was too high | **Purchase return** (debit note) | Yes, when **confirmed**; a **refund** from the supplier is a separate step. |
| Bill was a mistake | **Void** the purchase | Reverses the original entry. |

**Suppliers** are the people and companies you buy from. **Payables** is the report of what you owe, by age.

## Purchases or expenses?

- Use a **purchase** when there is a supplier bill you pay later, when you want the amount to sit in payables, or when tax on the bill must be tracked (input VAT/GST).
- Use an **expense** for money already spent from cash or bank with no bill to track — taxi, small supplies, subscriptions.

## Which screen do I use?

- Record a supplier bill → **Purchasing → Purchases** → [Purchases and bills](https://docs.getonebooks.com/purchases/bills/)
- Pay a supplier → **Record Payment** on the purchase, or **Purchasing → Payments** → [Supplier payments](https://docs.getonebooks.com/purchases/supplier-payments/)
- Return goods → **Purchasing → Purchase Returns** → [Purchase returns and debit notes](https://docs.getonebooks.com/purchases/purchase-returns/)
- What do I owe? → **Purchasing → Payables** → [Payables and aging](https://docs.getonebooks.com/purchases/payables/)

## Related

  - [Record an expense](https://docs.getonebooks.com/expenses/record/)
  - [How the ledger works](https://docs.getonebooks.com/accounting/how-it-works/)