Download Purchase Invoice Format
in Excel | Free Purchase Invoice Template


Download Invoice Maker Download Invoice Format

Download Free Professional Purchase Invoice Format In Excel

GST Format 01
GST Format 02
GST Format 03
GST Format 04

What is Purchase Invoice

Masked person using laptop, symbolizing cybersecurity threats and computer security risks

A purchase invoice is a document that a buyer receives from a seller when they buy goods or services. It records what was purchased, in what quantity, at what price, along with taxes and payment terms. It acts as proof of purchase and is used to manage accounts payable and claim input tax credit.

In simple terms, the purchase invoice meaning is a bill sent to the buyer after an order is fulfilled, stating the amount due.



What is Purchase Invoice Format ?

A purchase invoice format is a structured layout that includes all the necessary details to record a business purchase. It typically contains:

  • Buyer and seller information
  • Invoice number and date
  • Description of goods/services purchased
  • Quantity and rate
  • Total amount, including taxes
  • Payment terms and due date

    • You can use templates in Excel, Word, or PDF. A well-designed format ensures accuracy, consistency, and GST compliance. Businesses often maintain a clear record of both sales and purchase invoices for bookkeeping.

    Masked person using laptop, symbolizing cybersecurity threats and computer security risks


    Why is a Purchase Invoice Important for Your Business?

    Masked person using laptop, symbolizing cybersecurity threats and computer security risks

    A proper purchase invoice bill is critical for several reasons:

    • Legal compliance: It serves as proof of business transactions.
    • Input Tax Credit: In GST-based systems, it’s essential for claiming ITC.
    • Expense tracking: Helps in managing business spending and vendor payments.
    • Audits and accounting: Ensures transparency during tax audits or internal reviews.
    • Cash flow management: Invoices help you plan out-payments and avoid late penalties.

      • For companies using purchase invoice discounting, these invoices can even be used to secure short-term funding based on unpaid supplier bills.



      Where is a Purchase Invoice Used ?

      Purchase invoices are used across many types of businesses and industries. Some examples include:

      • Retailers and wholesalers buying inventory
      • Service businesses outsourcing work or subscriptions
      • Manufacturers purchasing raw materials
      • Export/import companies tracking procurement
      • Freelancers or agencies managing business-related expenses

      You can easily find a purchase invoice example in any standard accounting process, especially when working with GST or vendor billing systems.

      Masked person using laptop, symbolizing cybersecurity threats and computer security risks


      How You Can Create Purchase Invoice Format ?

      Masked person using laptop, symbolizing cybersecurity threats and computer security risks

      Here are simple steps to create your own purchase invoice template:

      • Choose your format – Use Excel, Word, or accounting software.
      • Add company & vendor details – Include GST number, address, and contact info.
      • Insert invoice number & date – This keeps your records organized.
      • List items/services – Add item descriptions, quantity, unit price, and total.
      • Apply taxes – Include GST or VAT if applicable.
      • Include payment terms – Add due date, bank details, and notes.
      • Save and share – Export as PDF or print it.

      Businesses often use the same style for both sales invoice and purchase invoice to maintain consistency.



      Frequently Asked Questions

      A document received by the buyer from the supplier, stating the details of purchased goods/services and the total amount payable.
      No. A sales invoice is issued by the seller, while a purchase invoice is received by the buyer for the same transaction.
      Yes. If the supplier offers a trade or cash discount, it should be clearly mentioned in the invoice.
      Absolutely. You cannot claim input tax credit (ITC) without a valid GST-compliant purchase invoice.
      A sales purchase invoice refers to the documentation used in a two-way transaction: one as a sales record for the seller and one as a purchase record for the buyer.