Purchase invoices (bills)

A bill is a supplier's invoice entered in Verasol. Like a sales invoice, it starts as a draft: a draft is not in your books, and you can still change or delete it. When you approve it, Verasol books the purchase, the input VAT and what you owe the supplier, and takes any stock into your warehouse. From then on the bill is settled by payments and debit notes.

Find your bills#

Open Invoices › Purchase Invoices in the main menu. The list shows every bill with its vendor, dates, status, amount and Balance Due. You can search by bill number or vendor, and filter by status, by vendor, and by kind of document (bills, debit notes or opening balances).

• 1 Read an e-invoice fills a new bill from the XML e-invoice a supplier sent you.
• 2 Create Bill opens an empty bill.
• 3 Search by bill number or vendor.
• 4 Each row has an Actions menu: View Details, Edit, Download PDF, Mark as Recorded (drafts only), Record Payment and Delete or Cancel bill (reverse entry).

Verasol numbers its bills itself (BILL-2026-10-0009). The supplier's own invoice number is kept as the Vendor Bill Number.

Enter a bill#

1. Click Create Bill.
2. Choose the Vendor. To add a new supplier without leaving the bill, click the + next to the field (Add New Vendor).
3. Enter the Bill Date (the date on the supplier's invoice) and check the Due Date. Verasol fills it in from the vendor's payment terms.
4. Enter the Vendor Bill Number exactly as printed on the supplier's invoice.
5. Check the Supplier TRN. Verasol fills in the vendor's TRN; correct it if the invoice shows another one.
6. Choose the Bill Type (see which bill type below) and, for a foreign supplier, the Currency. Verasol fills in the Rate to AED.
7. Keep ITC Eligibility on Eligible for ITC unless the VAT cannot be recovered (see Input VAT).
8. Add a line for each product or service with Add Item: the Item / Service, the Qty, the Rate and the VAT %, and for a cost the Expense Account. The Bill Summary on the right adds up the bill and the input VAT.
9. Click Save Bill. The bill is saved as a draft and opens.

1 Vendor, 2 Vendor Bill Number, 3 Supplier TRN, 4 Bill Type, 5 ITC Eligibility, 6 Expense Account of the line, 7 Save Bill.

Stock lines and expense lines#

When the Inventory module is on, a line can take an item from your catalogue. Verasol then fills in the item's purchase price, VAT rate and description, and you can change them to match the supplier's invoice. For a cost that is not in your catalogue, such as rent or a consultant's fee, choose Not a catalogue item (type the expense below) and type the line yourself. Without the Inventory module you always type each line's name.

What a line books:

• Goods you keep in stock, with a Warehouse: the line goes to Inventory, and the goods go into that warehouse when the bill is approved.
• Everything else (services, costs, goods you do not keep in stock): the line goes to its Expense Account. Without one, it goes to the item's purchase account, or else to your Purchases account. The list offers your expense accounts and, under Fixed assets, your fixed asset accounts for equipment you buy.

When a bill puts a cost on a fixed asset account, the bill shows Register in Fixed Assets until the asset is in the register. See Fixed asset register.

Which bill type#

For Import and Reverse Charge the supplier charges no UAE VAT. Verasol books the VAT as both input VAT and output VAT, and the supplier is owed only the net amount.

Input VAT#

Verasol recovers the VAT on a bill as input VAT only when:

• your company is registered for VAT on the bill date, and
• the supplier is registered for VAT and its TRN is on the bill (in the Supplier TRN, or on the vendor). Imports and reverse charge bills do not need it.

When one of these is missing, Verasol warns you, and the VAT is booked as part of the cost of what you bought instead of as input VAT. You can also choose this yourself in ITC Eligibility: Not Eligible for VAT you may not recover (for example on client entertainment), or Partly recoverable, with the amount that can be recovered.

Read a supplier's e-invoice#

If your supplier sends a UAE e-invoice as an XML file, click Read an e-invoice and choose the file. Verasol shows the supplier, the lines and the totals, says whether the e-invoice passes the UAE e-invoice checks, and warns you when the invoice is already entered. Create bill from it opens a new bill filled in from it: check the lines and accounts, then click Save Bill. A supplier's credit note is entered as a debit note on the original bill instead.

Approve the bill#

Open the draft. While it is a draft you can still change it with Edit, or remove it with Delete in the ⋮ menu. When it is right, click Approve Bill and confirm with Yes, Approve Bill.

Verasol books the bill, takes its stock lines into the warehouse and changes its status to Pending. In the list, Mark as Recorded in the Actions menu approves a draft in the same way, after you confirm.

What Verasol books#

When you approve a bill for office supplies of AED 1,592.00 with 5% VAT, Verasol posts this journal entry:

A bill with stock lines debits Inventory for them instead. For example, an import of servers, firewalls and storage for USD 34,515.73, with USD 1,503.00 of freight, at 3.6725 to the dollar:

Account codes depend on your chart of accounts. A bill made from a purchase order clears Goods Received Not Invoiced instead of debiting Inventory: see Purchase orders and goods receipts.

Follow the bill until it is paid#

• 1 Record Payment when you pay the supplier. See Pay your suppliers.
• 2 Input Tax Credit (ITC) shows the VAT you recover, and any VAT booked as a cost.
• 3 The Tax Breakdown shows the subtotal, the VAT and the total.

The ⋮ menu has Download PDF, Duplicate (a new draft copy dated today) and, on a bill in AED, Create debit note (supplier credit). The History shows who created, changed and approved the bill, and the Dates box on the right shows when the bill was entered, paid and last changed.

Related#

• Vendors
• Purchase orders and goods receipts
• Pay your suppliers
• Supplier debit notes
• How VAT works in Verasol