Converting a Requisition to an Invoice

Quick Overview

Often you receive the goods from the supplier before their invoice arrives, or you deliver the goods to the client before issuing their invoice. The system  lets you record the stock movement first with a stock requisition, then convert the same requisition to an invoice later, so the invoice is linked to the requisition and the stock movement isn’t repeated. This article explains the method in both directions: incoming from suppliers, and outgoing to clients.

Direction	Step One (Stock)	Step Two (Invoice)
Incoming (purchases)	Manual Addition: the goods enter stock immediately.	The Create Purchase Invoice button from the requisition page.
Outgoing (sales)	Manual Issue: the goods leave stock immediately.	The Create Invoice button from the requisition page.
Outgoing through a sales order	A stock requisition from the sales order then confirming it.	The Convert to Invoice button from the sales order.

Before You Start

• For incoming: enable Stock Requisitions for Purchase Invoices from Inventory & Products Settings in the Stock Requisitions section; without it the Create Purchase Invoice button doesn’t appear in the requisition.
• For outgoing: enable Stock Requisitions for Sales Invoices from the same section; without it the Create Invoice button doesn’t appear in the requisition, and a requisition cannot be created from the sales order.
• For outgoing through a sales order: enable the Sales Order System from Sales Order Settings.
• Permissions: Add Stock Requisition, and Add New Purchase Invoice for incoming, and Add Invoices for outgoing, and Convert Sales Order to Invoice for sales orders. And confirming or rejecting the requisition requires the permission to edit the stock requisition.
• Optional: to follow the received goods whose invoice hasn’t arrived yet, create an account in the Chart of Accounts named Goods Received Not Invoiced to choose it in the requisition.

How to Access

• From the main menu: Inventory then Stock Requisitions, then the Add button and choose Manual Addition or Manual Issue.
• Directly: Manual Addition or Manual Issue.
• For sales orders: Sales then Sales Orders.

Incoming: Receiving the Goods Then the Purchase Invoice

Step 1: Record the Receipt

1. Open Manual Addition.
2. Choose the warehouse and the date, then choose the supplier from whom you received the goods.
3. Optional: in the Sub-Account field choose the Goods Received Not Invoiced account.
4. Add the products and the received quantities, and enter the unit price agreed with the supplier.
5. Click Save, and the requisition is approved directly and the quantities are added to stock.

Step 2: Issue the Purchase Invoice When It Arrives

1. Open the requisition from Stock Requisitions, and click Create Purchase Invoice.
2. A new purchase invoice opens with the same supplier, warehouse, lines, quantities, and prices.
3. Review the prices and taxes according to the supplier’s invoice, and add any other data, then save.
4. The invoice is linked to the requisition and the quantities aren’t added again.

Outgoing: Delivering the Goods Then the Sales Invoice

Step 1: Record the Delivery

1. Open Manual Issue.
2. Choose the warehouse and the date, then choose the client who received the goods.
3. Add the products and the delivered quantities, and write the delivery requisition number or any note in the Notes.
4. Click Save, and the requisition is approved directly and the quantities are deducted from stock at the average cost.

Step 2: Issue the Sales Invoice

1. Open the requisition from Stock Requisitions, and click Create Invoice.
2. A sales invoice opens with the same client, lines, and quantities, and the prices are filled in from the product’s selling price.
3. Edit the prices, discounts, and taxes according to the agreement, then save.
4. The invoice is linked to the requisition and the quantities aren’t deducted again.

Outgoing Through a Sales Order

If you work with sales orders, you can deliver from the sales order then convert it to an invoice:

1. Create a sales order, and enable the Create Stock Requisition option before saving, or click Create Stock Requisition from the sales order page after issuing it.
2. An issue requisition is created with the status Under Delivery. When delivering, open the requisition and click Confirm, or edit the quantity for a partial delivery then save.
3. After the delivery click Convert to Invoice in the sales order, and the invoice is created from the quantities actually delivered.
4. If there are requisitions Under Delivery, the Stock Requisitions Under Delivery window appears for you to choose what you want to include in the invoice.

Fields and Buttons Explained

Field / Button	Description	Appears When
Supplier	The supplier from whom you received the goods, and it moves to the purchase invoice.	The manual addition requisition
Client	The client who received the goods, and it moves to the sales invoice.	The manual issue requisition
Sub-Account	The offsetting account for the requisition’s entry until the invoice is issued. In incoming it moves to the invoice as the purchases account when converting a single requisition.	When general accounting is enabled
Unit Price	In incoming: the purchase price, and editing it requires the permission to edit the stock movement price. In outgoing: it is calculated automatically at the average cost.	Always
Create Purchase Invoice	Converts the manual addition requisition to a purchase invoice linked to it.	When Stock Requisitions for Purchase Invoices is enabled
Create Invoice	Converts the manual issue requisition to a sales invoice linked to it.	When Stock Requisitions for Sales Invoices is enabled
Confirm / Reject	Approving a requisition under delivery or rejecting it.	The requisitions resulting from sales orders and invoices

Error Messages and Their Solutions

The Message That Appears	The Cause	The Solution
The stock requisitions must be on the same warehouse	You selected requisitions from different warehouses to convert to one invoice.	Convert each warehouse’s requisitions in a separate invoice.
The quantity is greater than the order	You entered a delivery quantity greater than the quantity in the sales order or the invoice.	Enter a quantity not exceeding the remainder.
Stock requisitions for sales invoices are disabled	The setting isn’t enabled.	Enable it from Inventory & Products Settings.
You cannot create stock requisitions for a draft sales order. Please issue it first.	The sales order is a draft.	Issue the sales order first.
There are no approved stock requisitions for the sales order	You haven’t confirmed any delivery requisition.	Confirm the requisition first or choose the requisitions under delivery in the conversion window.
The sales order cannot be converted to an invoice, as all the stock requisitions are rejected	All delivery requisitions are rejected.	Create a new requisition then confirm it.
Stock requisitions under delivery linked to other operations cannot be deleted	Trying to delete a requisition linked to a sales order or an invoice.	Reject the requisition instead of deleting it.
You cannot edit this record because it has already been received / You cannot edit this invoice because it has already been received	The invoice is fully received through the requisition.	Use a credit note or a refund to correct.

Cases and Settings That Affect It

Requisition Statuses and Delivery Status

Status	Meaning
Approved	The quantities moved in stock. Manual requisitions are approved directly when saved.
Under Delivery	A requisition resulting from a sales order or an invoice that hasn’t been confirmed yet, so the quantities didn’t move.
Rejected	The requisition was canceled and the quantities didn’t move.
Received / Partially Received	The delivery status on the linked document according to the confirmed quantities.

Why Isn’t the Purchase Order Used for Receiving?

The purchase order doesn’t move stock and has no receipt step, and it converts directly to a purchase invoice. So record the receipt with a manual addition requisition as in Incoming, and write the purchase order number in the notes.

If You Created the Invoice Separately from the Requisition

If you recorded the requisition and then created a new invoice from the invoices screen instead of the conversion button in the requisition, the invoice won’t be linked to the requisition, and the quantities will move twice. Always use the Create Purchase Invoice or Create Invoice button from the requisition page.

The Effect on the System

Incoming example: receiving 10 units at a price of 50 from Supplier Company, and 15% VAT in the invoice.

1. The Receipt Entry (Before the Invoice)

Account	Debit	Credit
The main warehouse (the warehouse account)	500.00
Goods received not invoiced (or other credit balances)		500.00
Total	500.00	500.00

2. After Issuing the Purchase Invoice

The requisition’s entry is re-posted to the purchases account (or to the sub-account itself if you chose it), and the invoice entry is created:

Account	Debit	Credit
Purchases (or goods received not invoiced)	500.00
VAT paid	75.00
Supplier Company		575.00
Total	575.00	575.00

So the final effect becomes: stock increases by 500, the tax 75, and 575 is due to the supplier, and the intermediary account is closed.

Outgoing example: delivering 10 units with an average cost of 30, and selling them at 50 per unit with 15% tax.

3. The Delivery Entry (Before the Invoice)

Account	Debit	Credit
Other debit balances (or the chosen sub-account)	300.00
The main warehouse (the warehouse account)		300.00
Total	300.00	300.00

4. After Issuing the Sales Invoice

The requisition’s entry is re-posted to the cost of sales:

Account	Debit	Credit
Cost of sales	300.00
The main warehouse (the warehouse account)		300.00
Total	300.00	300.00

And the invoice entry is created:

Account	Debit	Credit
The client	575.00
Sales		500.00
VAT collected		75.00
Total	575.00	575.00

Important Notes

• Use the intermediary account Goods Received Not Invoiced to know from its balance the value of the received goods whose invoices haven’t arrived.
• You can set the default account for manual requisitions from Stock Requisitions Account Routing.
• After the invoice is fully received it can’t be edited, so review the prices and quantities before saving.

Frequently Asked Questions

I received the goods and the supplier’s invoice didn’t arrive. How do I record it?

Record a Manual Addition with the supplier and the quantities, then click Create Purchase Invoice from the requisition when the invoice arrives.

The Create Purchase Invoice button doesn’t appear in the requisition. Why?

Enable Stock Requisitions for Purchase Invoices from Inventory & Products Settings, and make sure of the permission to add a purchase invoice and that the requisition is a Manual Addition.

Is the quantity duplicated in stock after converting the requisition to an invoice?

No, the invoice replaces the requisition’s movement and doesn’t add a new movement, provided it is created from the conversion button in the requisition.

Can I invoice more than one receipt in one invoice?

Yes, select the requisitions from the list and choose create invoice, provided they are on the same warehouse.

Can I receive directly from the purchase order?

No, the purchase order doesn’t move stock. Record the receipt with a manual addition requisition.