Go to Expenses → Purchase orders → New purchase order. Choose the vendor, the date, when you need it, and the lines with their tax rate. Purchase orders are numbered PO-00001, PO-00002 and so on.
- Email sends it to the vendor, asking them to quote the number on their invoice.
- When their bill arrives, click Record bill and enter their bill number. The vendor bill is created from the order's lines, with input tax and (in India) the MSMED due date worked out as usual. Edit the bill if it differs from the order.
- Cancel an order you no longer need. An order with a bill recorded against it can't be cancelled.