Adding a purchase invoice involves crediting a vendor (or bank) account and debiting one or more expense or inventory accounts. If any taxes are applied to the purchase, those tax accounts are debited as well. With NV2, you don't have to be concerned with debits or credits when entering purchase invoices. You simply specify the vendor you are purchasing from, and the details of the items you are purchasing. Trade taxes, if applicable, are calculated and added automatically.
Invoices can be added to the Purchase Invoices Journal, or they can be added directly to vendor (or bank) accounts. When you add an invoice to the Purchase Invoices Journal, postings are made automatically to the vendor account, to the expense or inventory accounts that correspond to the items purchased, and to any applicable tax accounts. When you add an invoice directly to a vendor account, postings are made automatically to the corresponding expense/inventory and tax accounts, and a journal entry is created in the Purchases Invoices Journal.
The choice of entering invoices in a journal or in the vendor account is completely up to you; the end result is identical either way.
There are 15 user definable text fields for Additional Information that can be added to purchase invoices and orders. The Default Additional Info tab on the Journal can be used to set default values. Once the settings are in place, these values will be added automatically to purchase invoices and orders at the time they are created.
Important! In order for trade taxes and terms on invoices to be calculated correctly, you must first set up the default trade taxes for purchases (see Trade Tax Settings for Purchases for more information). However, you can always edit tax amounts on invoices. e.g. special circumstances for a particular purchase that affect the tax calculation.