Sales and Purchase Invoices
Sales and purchase invoices are at the heart of every business transaction. In Udyot ERP, a single save on a Sales or Purchase voucher posts to the general ledger, updates your godown stock, and feeds Nepal VAT figures directly into your IRD annexures — all at once. If you have perpetual inventory enabled, the Cost of Goods Sold expense also posts automatically at the time of sale.
Creating a sales invoice
- Go to Vouchers → Sales → New.
- Select your customer from the Party field. The customer must already exist as a party under Sundry Debtors. For B2B sales above NPR 10,000, enter the buyer’s PAN in the PAN field — this is mandatory for IRD-format tax invoices.
- Enter the invoice date in Bikram Sambat (BS) format. The date picker converts AD to BS automatically if you prefer to type the AD date.
- Add line items: choose the stock item, enter quantity, rate, and discount amount (if any). Discount is applied before VAT is calculated — so the VAT is computed on the discounted value, not the list price.
- For each line, select the VAT rate from the dropdown: 13% for standard taxable goods, or 0% for exempt or zero-rated items (such as export sales). Nepal VAT is binary — there are no other rates. The HS code for each item is automatically copied from the item master to the invoice line.
- If your selling prices already include VAT (common in retail), toggle Tax Inclusive on. Udyot back-calculates the net and VAT for you. For example, an inclusive price of NPR 1,130 splits into NPR 1,000 net + NPR 130 VAT.
- Click Save.
After saving, the GL entries Udyot posts are:
| Dr / Cr | Ledger | Amount |
|---|---|---|
| Dr | Customer (Sundry Debtors) | Invoice total including VAT |
| Cr | Sales Account (taxable lines) | Net taxable amount |
| Cr | Sales Account (zero-rated lines) | Net zero-rated amount |
| Cr | VAT Output (Duties & Taxes) | VAT at 13% on taxable lines |
Creating a purchase bill
- Go to Vouchers → Purchase → New.
- Select the supplier from the Party field (Sundry Creditors).
- Enter the supplier’s bill number and bill date (in BS). These fields are required — they let you match the system entry to the physical paper invoice from your vendor and prevent duplicate bill entry for the same supplier.
- Add line items with quantity, purchase rate, discount, and VAT rate (13% or 0%) for each line.
- Click Save.
After saving, the GL entries posted are:
| Dr / Cr | Ledger | Amount |
|---|---|---|
| Dr | Purchase Account | Net purchase amount |
| Dr | VAT Input Credit (Duties & Taxes) | VAT at 13% on taxable lines |
| Cr | Supplier (Sundry Creditors) | Total payable including VAT |
The input VAT (Dr VAT Input Credit) is the amount you can offset against your output VAT liability when filing your monthly VAT return with IRD.
Nepal-specific notes
- VAT rates are a dropdown, not free text. Nepal VAT has exactly two rates: 13% and 0%. You select one per line — you cannot type a custom rate. A single invoice can mix 13% and 0% lines (for example, selling a taxable product and a zero-rated export item on the same bill).
- Buyer PAN is mandatory above NPR 10,000. For B2B transactions exceeding NPR 10,000 in a single invoice, IRD requires the buyer’s PAN to be recorded. Udyot will prompt you to fill this in.
- HS codes are snapshotted per line. When you add an item to an invoice, the HS (Harmonised System) code from the item master is copied to the invoice line. If you later update the HS code on the item master, existing posted invoices are unaffected — the snapshotted code stays with the voucher for audit integrity.
- Dates are in BS. All invoice dates in Udyot use Bikram Sambat. The fiscal year runs from Shrawan 1 (mid-July) to Ashad end (mid-July the next year). See Nepal Fiscal Year and BS Calendar for more detail.
- Discount before VAT. Per standard Nepal VAT practice, any line discount you enter reduces the taxable base first. VAT is then applied to the post-discount amount.
VAT-inclusive pricing
If you quote prices inclusive of VAT — for example on a printed menu or a retail shelf tag — enable the Tax Inclusive toggle before entering rates. Udyot will back-calculate both the net value and the VAT component. A line entered at NPR 1,130 inclusive will show NPR 1,000 as the net sale and NPR 130 as VAT (13%).
Sales returns and purchase returns
When a customer returns goods, create a Credit Note (go to Vouchers → Credit Note → New). Udyot reverses the original sales GL entries and adds the stock back into your godown. For goods you return to a supplier, create a Debit Note — it reverses the purchase entries and removes the stock. The VAT reversal (output VAT for a sales return, input VAT for a purchase return) posts automatically and appears in your VAT return for the month of the note.
After saving — what to check
- Stock movement: Go to Inventory → Stock Summary to confirm item quantities changed as expected.
- Daybook: Go to Reports → Daybook to see the posted GL entries for the voucher.
- Outstanding bills: The invoice appears in the customer’s or supplier’s outstanding balance, ready to be matched against a payment or receipt. See Payment and Receipt Vouchers for how to record settlement.
- VAT annexure: The invoice automatically feeds the monthly VAT return — no manual entry needed.