Whats the "correct" way to record these ?

Hi Adrian,

Create a purchase invoice - see this page for details:
http://www.solaraccounts.co.uk/help/how-to-record-a-purchase-invoice.php

Cheers

Hi Adrian,

One more thing: If you receive the goods or services on the same day you pay, then it is simpler to record a Money Paid Out transaction with the Type field set to 'General Payment' as shown here:
http://www.solaraccounts.co.uk/help/how-to-record-an-expense.php

Regards,

Cheers Mark...whilst we at it what's a purchase order and how does that differ from a PI ?

Hi Adrian,

A purchase order is simply a document requesting goods or services from a supplier. It has no affect on your account balances because your supplier may decline to deliver the goods or services.

A purchase invoice records that fact that you have received the goods or services, so it will increase the balance of the appropriate expense or asset account.

Regards,