Skip to main content

Purchases and Expenses

Track what your business spends by recording Bills from vendors, Purchase Orders, and direct Expenses. All purchase transactions are found under the Transactions menu.

Purchase Workflow Overview​

Purchase Order → Purchase Bill → Vendor Payment
                     ↓
              Debit Note (Purchase Return)
DocumentPurpose
Purchase OrderA formal order sent to a vendor for goods/services
Purchase BillRecords money owed to a vendor (Accounts Payable)
ExpenseA direct cash/card payment (no credit involved)
Debit Note (Purchase Return)Records goods returned to a vendor

Recording a Purchase Bill​

A Bill represents money you owe to a vendor for goods or services received on credit.

  1. Go to Transactions > Purchase Bills.
  2. Click New Purchase Bill.
  3. Select a Vendor.
  4. Enter the Bill Date, Due Date, and optional PO Number.
  5. Add items or services. Tax is calculated based on the vendor's GST treatment.
  6. Click Save — this adds the amount to your Accounts Payable.

Discounts​

Just like sales documents, Purchase Bills and Expenses support a Discount at two levels: on an individual line item, or as a single discount across the whole document.

Line-item discount:

  1. On the line for an item, use the Discount field.
  2. Choose % or a fixed currency amount from the dropdown next to it.
  3. The line total updates automatically.

Document-level discount:

  1. Below the line items, click + Add Discount.
  2. Enter the amount or percentage. The Total after discounts line reflects the reduced total.

This is useful for recording a vendor's early-payment discount or a negotiated reduction on the whole bill, on top of any per-item discounts already applied. See Sales and Invoicing for more detail on how the discount options behave — the mechanics are identical on the purchase side.

Direct Amount Entry​

For simple purchases where you don't need to list individual items — a flat consulting fee, a one-off service charge, or a bill that doesn't break down into line items — use Direct Amount Entry instead of itemizing.

  1. On the Purchase Bill or Expense form, find the Line Items / Direct Amount Entry toggle above the item table.
  2. Turn on Direct Amount Entry.
  3. Enter the Amount.
  4. (Optional) Choose a Document Tax (Optional), then select Tax Inclusive or Tax Exclusive. MyBooks shows a live breakdown (Base + Tax = Total).
  5. Enter a Description of the expense.
  6. (Optional) Select a Purchase/Expense Account to categorize the spend.
  7. Save as usual.

This is a genuine alternative to itemized entry, not just a shortcut for one line — see Sales and Invoicing for a fuller walkthrough of Direct Amount Entry, since the same toggle and fields are shared across sales and purchase documents.

Recording Payments to Vendors​

To pay a bill:

  1. Open the Bill and click Record Payment.
  2. Select the Payment From account (bank or cash).
  3. Enter the amount and an optional reference number.
  4. Click Save. The bill status changes to Paid or Partially Paid.

For advance payments to a vendor not linked to a specific bill, use the Vendor Payments screen. See Vendor Payments.

Purchase Orders​

A Purchase Order (PO) is sent to a vendor to confirm your intention to buy.

  1. Go to Transactions > Purchase Orders.
  2. Click New Purchase Order.
  3. Select the vendor and add items with quantities and rates.
  4. Save and optionally Print or Send the PO to the vendor.
  5. When the goods arrive and you receive the bill, click Convert to turn it into a Purchase Bill.

See the full Purchase Orders guide.

Debit Notes (Purchase Returns)​

A Debit Note is raised when you return goods to a vendor and need to reduce the amount you owe.

  1. Go to Transactions > Purchase Returns.
  2. Click New Purchase Return.
  3. Select the vendor and add the returned items.
  4. Save to create the Debit Note.
  5. Apply the debit to an outstanding bill or leave it as a credit balance with the vendor.

See the full Debit Notes guide.

Direct Expenses​

For immediate cash payments (like rent, utilities, or petty cash purchases), use Expenses. Unlike bills, expenses are paid at the time of recording.

  1. Go to Transactions > Expenses.
  2. Click New Expense.
  3. Select or enter the Vendor (optional for miscellaneous expenses).
  4. Select the Expense Account (e.g., Office Supplies, Rent, Traveling).
  5. Select the Paid Through account (e.g., Petty Cash, Bank Account, or Credit Card).
  6. Enter the Amount, Date, and optionally a Reference Number.
  7. (Optional) Add Tags or attach a photo/PDF of the receipt.
  8. Click Save.

Expenses appear in your Profit & Loss report. If they involve inventory, use a Purchase Bill instead.