Types of purchase documents

Purchase invoice - A purchase invoice is a document presented to a buyer by a seller or service provider for payment within a stated time frame. It indicates what has been purchased, in what amount and for what price.

Purchase credit note - You can create a purchase credit note to account for a supplier's credit note, or you can use it as a clearing document to correct errors in an existing invoice or credit adjustment.

You can create a purchase credit note at the request of a supplier (for example for damaged goods or for an overpaid invoice) or you can apply it directly against invoices or credit adjustments.

When you post a purchase credit note, you reduce the balance in the supplier ledger.

Credit adjustment - You can create a credit adjustment to account for a supplier's debit note, or you can use it to correct errors tin an existing invoice.

When you post a credit adjustment, it increases the balance in the supplier ledger.

Prepayment - You can use a prepayment to settle a debt or instalment payment before its official due date. It can either be made for the entire balance of a liability or for an upcoming payment that is paid in advance of the due date.