Purchase Invoices
When an invoice is received from one of your regular suppliers, this should be entered into Easy Books as a purchase invoice. It is not necessary to do this for one-off purchases where payment is made immediately; this is used for suppliers you have an account with. To do this, click on the Purchases icon in the main navigation panel. The list of purchase invoices is displayed. To add a new one, tap on the + in the top right of the list.
The entry screen shown allows you to set the details from the invoice. In the example screenshot, we have received an invoice for £29.79 (ex-vat) from our phone provider. We link the invoice to an expense account under Account 1, in this case we have an account in the "Indirect Expenses" category called “Phones, Internet”.
The amount to enter should be the ex-VAT figure if you are accounting for VAT, otherwise it will be the total amount. Don't worry though; the app prompts for which it is automatically. You can also change the behaviour to force all amounts to be entered including or excluding in the preferences.
When you select a VAT account, the app calculates the amount of VAT it expects based on the percentage rate you set for the VAT account.
When the purchase invoice is saved, the previous screen appears again. This time, the invoice we have entered appears in the list.
If you deal with the same group of suppliers regularly, you may find it easier to make a copy of a previous invoice line using the + button at the bottom of the entry screen. You then skip the selection of accounts, and can just change the date, and the amounts if necessary.
(Sales invoices are entered in the same way as purchase invoices. From the main screen, click on Sales).
Paying Your Suppliers
When a purchase invoice is received, typically the payment is due at some time later. So there are two lines per purchase.
In this example, we have already entered the purchase invoice from our supplier, Vodafone.
We later pay the outstanding invoice from the main bank account. To do this, tap on Accounts on the main screen, followed by the account the payment is being made from. The current list of transactions is displayed. Since we are recording a new payment from the account, tap the + button in the navigation bar just as when recording the invoice.
Note: You can also find the supplier account and enter the transaction there instead, linking it to the bank account in the same way. This example uses this method, but you can choose whichever you find easier. There is also a convenience feature called Make payment, which appears on the context menu of the purchase line. This pre-fills the payment information for you, assuming a full payment is being sent and marks the purchase as paid.
With Account 1 showing the supplier (in this example), we select the "Bank account" in Account 2 and the date the payment was made. The Debit and Credit button is used to set the direction of the payment and toggles between "Payments & Cr-Notes" and "Purchases". This time, there is no VAT to account for because this has been entered on the invoice. The app prompts you for the amount, hides the VAT options, and the label is changed to Incl-VAT as an aid.
The account for the supplier now shows two lines, one for the invoice received and the other for the outgoing payment from the cheque account. You can tell easily if there is an outstanding balance because the app keeps track of all balances on all the accounts.