image

Purchase Invoice Format in Word, PDF, and Excel

Purchase invoice formats and templates enable businesses and service providers to find the best billing statements for their customers. Ready-to-use templates are crucial to businesses, especially small and medium businesses to consolidate their products and services transactions well.

Here is the collection of cost-effective and easy-to-understand purchase invoice formats for businesses.

Download Formats

Purchase Invoice Format in Excel, Word and PDF

Download
Download
Download
Download
Download

What Is a Purchase Invoice?

A purchase invoice is a formal document that includes precise details on the products and services purchased by the customer. It includes the costs of the items, the terms of the purchase agreement, and any discounts offered to the customers. This document also mentions the costs corresponding to the products and services. It is sent to the buyer after they have bought the products and services. The aim is to ensure that the invoice matches the purchase incurred by the customer. It is important to keep records of the items purchased by the customers and issue information on purchase terms.

The purchase invoice must include elements like -

  • Brief descriptions of products and services purchased by the buyer.
  • The quantity of the items mentioned alongside the respective goods.
  • Unit costs of each product.
  • Overall costs of the purchase.
  • Date of purchase.
  • Name, contact details, and address of the seller

    • What Is a Purchase Invoice Used For?

    Purchase invoices also called purchase statements are crucial in relation to the purchase order. The purpose of a purchase invoice is to provide a record of the purchase for both the buyer and the seller.

    It is used for the following-

  • It is critical for small businesses to track expenses and revenue.
  • It ensures a written record of the goods and services provided to the consumers and tracks the transactions.
  • It tracks the amounts charged to the customers and maintains the records for completed and pending orders or payments.
  • Purchase invoices are used to document the transactions between buyers and sellers and keep the purchase operations visible.
  • Purchase invoices include details such as the date of the transaction, the names and addresses of the buyer and seller, a description of the goods or services purchased, the quantity, the price, any applicable taxes, and the total amount due. This information helps to ensure a hassle-free payment experience.
  • Keeping track of purchase invoices simplifies the auditing process, allows businesses to settle accounts fast, and expedites the taxation process.

    • Components of Purchase Invoice Format

    Purchase invoice includes details on a specific buy transaction incurred between the buyer and the seller. The important components of the purchase invoice format are listed below -

  • Title - The invoice must be labeled properly as "Purchase Invoice".
  • Invoice Number - The invoice number uniquely identifies the purchase transaction agreement for future reference.
  • Date of Issuance - It includes the date when the purchase invoice was issued and sent to the customer.
  • Vendor Details - Includes information on the business providing the goods and services. Information like name, address, email, and other contact details are presented here.
  • Description of Items - The invoice must contain detailed and easy-to-understand information on the goods provided by the business.
  • Quantity and Total Value - The quantity and the value of the goods with the unit price and total price must be mentioned in the invoice.
  • Currency - Denomination must be mentioned in the transaction along with the specification of the legal medium of exchange involved for the goods and services.

    • How to Create a Purchase Invoice Format?

    It is important to understand how to construct the purchase invoice to track the costs of purchases and track the payments made by the business. Here is how you can create a purchase invoice -

  • Choose the software or invoice tool of your choice. In the software, you will find an option for "New", "Add", or a "Plus" sign to add a new purchase invoice.
  • Choose the supplier or vendor, you can choose the existing vendor or add a new vendor. Enter the details of the vendor to register it on the portal.
  • The next step is to add the details of the date and time of the issue of the invoice. You must recheck the data input in the checkboxes and ensures it is error-free.
  • Enter brief descriptions of the products and services.
  • Fill in the remaining fields of the invoice, if applicable like the due date, unit cost, quantity of the products, and other details.
  • You can also add details on the discounts offered by the supplier and update the information, as required.
  • Save the invoice details and click submit. The invoice is saved.
  • The purchase will automatically be saved in the resource ledgers, financial records, vendor payments columns, and inventory for enhanced accessibility.

    • Purchase Invoice Format in Excel

    A simple purchase invoice format in Excel can include all the aspects required by a business in an easy-to-understand and comprehensible template. You can designate specific color codes, use the functions and features offered by the Excel tool, and add other important information like unit costs, quantity, subtotal, and shipping costs.

    Excel provides an interactive interface easily customizable per the requirements of the company. You can also make great use of graphs, charts, tables, and other tools for graphical representation to simplify business records.

    Download Format

    Purchase Invoice Format in Word

    Another great way to create purchase invoice formats is to use purchase invoice format in Word. Word is an inbuilt application provided by Microsoft Office application that is dynamic and can easily be used to develop purchase invoice templates for business operations. It is useful to pace up your procurement operations.

    Use features like tables, bullets, and color code the rows and columns for easy accessibility of the entire format. You can easily edit the information, update, delete, or modify the invoice as required.

    Download Format

    Purchase Invoice Format in PDF

    A purchase invoice format in PDF format is an excellent way to record purchase operations. You can develop a simple and engaging template using a Word document with the required data, heading labels, and then convert it into a PDF.

    You can include built-in formulas in the purchase invoice format sample to automatically calculate the data entered. PDF formats are ideal to circulate and share with other operators and departments for use within the business and externally as well.

    Download Format

    Purchase Invoice Format in Google Sheets

    Google Sheets is an exceptional solution to combine the benefits of a cloud interface with Excel's built-in formula functionality. Google Sheets is ideal for new businesses, small-scale businesses, freelancers, and professionals struggling to start invoicing and troubleshooting, as and when required. You can customize the template as required and save time. Google Sheets has an in-built formula feature to track the records well.

    Download Format

    Purchase Invoice Format in Google Docs

    Google Docs makes daily tasks and business operations efficient with a vast variety of choices like custom templates, ready-to-use templates, and options for template creation from scratch. The Google Docs templates for purchase invoices ensure that the documents can be updated in real time since it operates on a cloud-based platform. It maintains revenue records effortlessly across the departments, allows the business to interact with other departments, and creates an easy reference for the staff.

    Download Format

    FAQs on Purchase Invoice Format

    • Why is a purchase invoice important?

      A purchase invoice format is important for SMEs to keep a record of goods and services purchased by the buyer and keep a tab on the payments completed by them.

    • What is the difference between a purchase invoice and a sales invoice?

      The main difference between a purchase invoice and a sales invoice is the direction of the transaction from the buyer or seller's perspective. A purchase invoice will be the term used for invoices received by the buyer for goods purchased by him from a supplier. On the other hand, a sales invoice is a term used by a seller when he has sold goods and services to his customer and requests payment for the same.

    • Can I customize my purchase invoice format?

      Yes, it is possible to make custom invoices format based on the software or program chosen by your business. You can also use ready-to-use purchase invoice formats and add additional details to them.

    • What should a purchase invoice format include?

      A purchase invoice format must include elements like a header, invoice number, business location, contact details, a brief description of goods and services, and payment terms.

    • What is the difference between a purchase order and an invoice?

      The key difference between a purchase order and a purchase invoice is in terms of fulfillment of necessary actions. A purchase order is published by a buyer when they request goods or services from a vendor, whereas a purchase invoice is received by the buyer after the order is fulfilled and they have received the goods.

    • What is the significance of a purchase invoice?

      Purchase invoices are significant to keep track of purchases and pending payments, and to ensure efficient and successful procurement operations. Businesses can use such invoices to track payment plans, the number of goods and services purchased, inventory stock, due dates for payments, and maintain audits.

    TranZact

    TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.