Xero Tutorial - Part 8 - Recording Supplier Invoices

Introduction

This tutorial will guide you through the process of recording supplier invoices using Xero, a popular online accounting software. Properly managing supplier invoices is crucial for maintaining accurate financial records and ensuring timely payments. By the end of this guide, you'll be equipped to efficiently post and record purchase invoices from your suppliers.

Step 1: Accessing the Invoices Section

• Log in to your Xero account.
• Navigate to the Business menu in the top navigation bar.
• Select Bills to pay from the dropdown options.

Step 2: Creating a New Supplier Invoice

• Click on the New Bill button located at the top right corner of the Bills to pay screen.
• A new invoice form will appear.

Step 3: Filling Out Invoice Details

• Supplier: Choose the supplier from the dropdown menu. If the supplier is not listed, you can add a new one by clicking the Add new supplier link.
• Date: Enter the invoice date.
• Due Date: Specify the payment due date.
• Reference: Optionally, add any reference number associated with the invoice.

Step 4: Adding Line Items

• In the Item column, start typing to select items or services purchased. If it’s not already in your inventory, you can add a new item.
• Fill in the following details for each line item:
  • Description: Briefly describe the product or service.
  • Quantity: Enter the number of items received.
  • Unit Price: Specify the price per item.
  • Account: Choose the appropriate expense account from the dropdown.
• Ensure that the Tax Rate is correct for each item.

Step 5: Reviewing the Invoice

• Check the Total Amount at the bottom of the invoice form to ensure it reflects the correct amount.
• Review all entries for accuracy, including supplier details and line items.

Step 6: Saving and Approving the Invoice

• Once you confirm that all details are correct, click the Save button to store the invoice.
• If you want to send the invoice to the supplier, click on the Email button to send it directly from Xero.

Step 7: Making Payments

• After the invoice is recorded, you can easily track it under the Bills to pay section.
• When it's time to pay the supplier, select the invoice and click on the Make Payment button.
• Fill in the payment details, including the payment date and method, then save.

Conclusion

Recording supplier invoices in Xero is a straightforward process that enhances your bookkeeping efficiency. By following these steps, you can ensure that your financial records are accurate and up-to-date. For further learning, consider exploring additional features within Xero or taking advantage of free bookkeeping courses available online.