How to use purchase receipts & invoices
Why these documents exist: the purchase receipt records the ownership transfer from the item's owner to you, and the linked purchase invoice tracks the balance you owe back.
Step-by-step
- A purchase receipt records ownership transfer from the owner to you.
- It's created automatically whenever you submit an order.
- Cancelling the order cancels the receipt and returns ownership.
- Each receipt links to a purchase invoice (paid/unpaid).
- The purchase invoice tracks the balance you owe the owner.
Full transcript
Let me explain two documents that are key for resellers - the purchase receipt and the purchase invoice - and why they exist when you sell on consignment.
When you cancel a sales order, ownership switches back to the original company - here, reuse it. You can confirm it on the item's target company. Open purchase receipts and you'll see the list. A purchase receipt records the transfer of ownership from the item's owner to you, the reseller. Because a reseller sells items they don't own, accounting-wise you first buy and own the item, then sell it - that's exactly what this document captures. Every time you submit an order, the system creates the purchase receipt automatically. Cancel the order and it cancels the receipt too, returning the item to its owner. Each purchase receipt is linked to a purchase invoice, which carries a paid or unpaid status, just like a sales invoice. The purchase invoice tracks your balance with the owner - what you still owe them for the items you sold. The two documents are always connected.