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Purchase invoice: the same document seen from the buyer's side

The supplier calls it a sales invoice. You call it a purchase invoice. The difference is what you have to do with it.

By Procurement VMS Editorial TeamReviewed by Michael, Procurement Advisor ExpertUpdated 4 minute read

On this page
  1. What a purchase invoice is
  2. What the buyer does with it
  3. What to look for
  4. Frequently asked questions

Key takeaways

  • A purchase invoice is a supplier's invoice as recorded by the buyer.
  • The buyer checks it against the purchase order and receipt, records it as a payable and claims any tax credit.
  • It is the same piece of paper as the supplier's sales invoice.
  • Keep the original for audit, for the period the law requires.

Free PDF and Excel: Purchase invoice check list and match sheet. Get it below

What a purchase invoice is

Definition

A purchase invoice is the document a buyer receives from a supplier asking for payment for goods or services, recorded in the buyer's books as a liability.

Both parties hold the same invoice. The supplier records it as a sale. The buyer records it as a purchase. This page is about the buyer's job. For the issuer's view, see invoice example and invoice versus bill.

Made-up example, for illustration only

A buyer receives an invoice for 80 units. The purchase order says 80. The goods receipt says 76 received. The buyer records the invoice but holds payment for 4 units and asks the supplier for a credit note.

What the buyer does with it

  1. Receive it and log the date.
  2. Check the supplier, the tax registration and the invoice number.
  3. Match it to the purchase order and the goods receipt. See the invoice approval guide.
  4. Check prices, quantities and tax.
  5. Code it to the right account and cost centre.
  6. Approve it according to the delegation limits.
  7. Schedule payment by the due date.
  8. Record any tax credit claimed, subject to the tax rules.

Free PDF and Excel

Purchase invoice check list and match sheet

A match sheet for comparing an invoice with the order and receipt before you approve payment.

  • Match sheet
  • Fraud check list
  • Coding guide
  • Excel match register

What to look for

These checks catch most errors.
CheckWhy
Duplicate invoice numberAvoids paying twice
Bank details differ from the masterA common fraud route
Tax registration validNeeded to claim credit
Prices match the orderAvoids overpayment
Quantity matches receiptAvoids paying for what did not arrive
Purchase invoice routine
  • Original invoice is stored.
  • Three-way match is done.
  • Tax details are valid.
  • Coding and approval are recorded.
  • Payment date is in the schedule.

Last checked: 19 October 2026. General practice. Tax credit rules differ by country.

Frequently asked questions

What is a purchase invoice?

The supplier's invoice as recorded by the buyer in its purchase ledger.

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

Nothing in the document itself. The names depend on whether you are the buyer or the seller.

How long should purchase invoices be kept?

As long as local tax and company law require. Check the rules for your country.

What is a three-way match?

Comparing the invoice, purchase order and goods receipt before payment.

Can I claim tax on a purchase invoice?

Often, if it is valid and meets the rules. Ask your tax adviser.

Where to read next

Take the PDF to your next meeting

It is a working document, not a brochure. Fill it in with your own numbers and share it with your team.

Looking at software instead? See our ranked procurement software list.

Disclosure: Zapro AI appears on some comparison pages as an editor's pick, and the people behind this site have a professional connection to Zapro AI.

Written by

Procurement VMS Editorial Team

Our editors research each guide from vendor documentation, public pricing pages and buyer feedback, and name the sources on the page. Learn who the team is.

Reviewed by

Michael, Procurement Advisor Expert

Michael checks our guides for practical accuracy against how procurement teams buy and run software. Read his profile.

Editorial guide

How we write and check pages

Read our editorial policy, how we handle corrections and what we do when a source changes.

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