A purchase order records what you want to buy; a purchase bill records the supplier’s invoice in your books. The practical purchase order vs purchase bill check is simple: compare what you ordered, what arrived and what the supplier billed. This guide shows how to handle those three quantities without adding missing goods to stock or entering the same purchase twice.
Purchase order vs purchase bill at a glance
| Question | Purchase order (PO) | Purchase bill |
|---|---|---|
| Who starts it? | Your shop asks the supplier for goods | The supplier issues an invoice; your shop records it |
| What does it describe? | Requested items, quantities, prices and delivery terms | Items, quantities, prices and tax actually billed |
| What should you compare it with? | The supplier’s acceptance and eventual delivery | The order, delivery count and supplier invoice |
| What happens when saved in Yojika? | No stock or supplier-balance movement | Stock increases and the purchase is posted to the supplier account |
| Does it prove payment? | No | No; payment needs its own record |
Keep the supplier’s original invoice alongside your purchase entry. An internal purchase-bill record helps you manage your books; it does not replace the supplier’s tax invoice.
Check three quantities before recording the purchase
This is especially useful before a seasonal stock-up. The official tourism calendar lists Navratri starting on 11/10/2026, so early October is a sensible time to check outstanding orders before placing more.
Use a small receiving sheet, notebook or spreadsheet with these columns:
- Ordered: the quantity the supplier agreed to send.
- Received: the quantity counted at your shop, with damage or shortages noted separately.
- Billed: the quantity on the supplier’s invoice.
Check the unit too. Six boxes and six pieces differ. Write the pack size beside the item.
Compare prices, discounts and delivery charges with the agreement. Ask the supplier to explain or correct discrepancies, and keep their response with the order.
For the wider bookkeeping routine, see how to record purchases and expenses for a small shop.
Worked example: a short delivery in Ahmedabad
Meena runs a household-goods shop in Ahmedabad. She orders stock from a local Gujarat wholesaler, with ordinary delivery to her shop. These are illustrative prices before GST, used only to compare order quantities and goods values.
| Item | Ordered | Received and billed | Price per piece | Order value | Received goods value |
|---|---|---|---|---|---|
| Storage containers | 40 | 30 | ₹100 | ₹4,000 | ₹3,000 |
| Serving trays | 20 | 20 | ₹150 | ₹3,000 | ₹3,000 |
| Total before GST | ₹7,000 | ₹6,000 |
The supplier bills only the delivered quantities. Meena records 30 containers and 20 trays, and notes that 10 containers worth ₹1,000 before GST remain undelivered. The check is ₹6,000 received + ₹1,000 pending = ₹7,000 ordered.
She does not add all 40 containers to stock. If the remaining containers arrive with a separate bill, she records that delivery once.
For this ordinary local supply, both the supplier location and place of supply are Gujarat, so taxable goods use CGST and SGST. CBIC explains this same-state treatment in FAQ 85 on place of supply. Check each item’s current rate on gst.gov.in or with your CA; the table above is not a complete tax invoice or a GST-rate example.
If the supplier had billed all 40 containers while delivering only 30, Meena would keep the shortage documented and resolve it with the supplier and her accountant before finalising the entry.
Convert an order only after checking the bill
Yojika lets you create a purchase order, preview it as a PDF and convert it to a purchase bill. Conversion immediately posts the purchase, including stock and the supplier balance; it is not just a preview.
Use this sequence when the complete delivery and supplier bill match the order:
- Compare items, quantities, units, prices and charges before converting.
- Choose Convert to purchase bill on the open order.
- Open the resulting purchase bill and choose Edit. Fill in the supplier’s bill number and supplier bill date, which conversion leaves blank. Check the purchase entry’s date too, because it starts with the order’s date.
- Confirm the saved totals and record the actual payment separately.
For a partial delivery like Meena’s, enter the matching supplier bill through Purchases → New purchase and keep a separate note of the pending order quantity. Do not later convert that original full order unchanged: doing so would record delivered goods again. Keep the original order and your follow-up notes together until the balance is resolved.
Also check advances. Yojika’s purchase-order Advance field is a reference calculation. It does not post a payment, and conversion does not apply the advance as one. Record real payments through the payment workflow, taking care not to enter an advance twice.
A purchase order alone does not establish GST credit
CGST Section 16 requires a prescribed tax document and receipt of goods or services, among other conditions, for input tax credit. A purchase order alone does not satisfy those requirements. See CBIC’s Section 16 eligibility provisions.
Recording a purchase in software is also not an eligibility decision. For shortages, instalment deliveries or disputed invoices, confirm the current rule with your CA before claiming credit.
Frequently asked questions
What is the difference between a purchase order and a purchase bill?
A purchase order records what your shop asks a supplier to deliver. A purchase bill records the supplier’s actual invoice in your books; compare it with both the order and the goods received.
Does saving a purchase order increase stock in Yojika?
No. Saving a purchase order does not change stock or supplier balances. Converting it to a purchase bill posts the purchase and increases stock.
What if the supplier delivers only part of my order?
Record the quantities received and compare them with the supplier’s bill. Keep the undelivered balance on a separate follow-up list; do not convert the full order unchanged when the delivery and bill cover only part of it.
Can I claim GST input tax credit using only a purchase order?
No. A purchase order alone is not the prescribed tax document for input tax credit. Eligibility also depends on the conditions in CGST Section 16; confirm the current rule with your CA.
Does an advance entered on a Yojika purchase order record a payment?
No. The advance field is a reference amount, and conversion does not apply it as a payment. Record actual payments through the payment workflow and check that each payment is entered only once.
Try the purchase workflow with a sample order
Yojika keeps purchase orders and purchase bills separate, so you can plan an order before posting stock and supplier dues. Explore the purchasing and inventory features, or download Yojika and try the workflow with sample data before using your shop’s live records.