Onboard a New Supplier

This page explains how to create a new supplier record in PayInvoice Next, enter the required tax and banking details, and complete the verification checklist before the supplier can be used in procurement.

Prerequisites

• You have the Purchase Manager or Purchase Master Manager role
• You have the supplier's GSTIN (if GST-registered), PAN, and bank account details
• For import suppliers: you have the supplier's tax identification from their country

Step-by-Step: Create a Supplier Record

1. Navigate to Supplier Management > Supplier > + New.
2. Enter the Supplier Name — this is the legal entity name as it appears on invoices and tax documents.
3. Select the Supplier Group (e.g., Raw Material, Services, Capital Goods). This controls default accounting settings.
4. Set the Supplier Type to Company or Individual.
5. Select the Country. For Indian suppliers, the GST section appears automatically.

Tax Registration Details

6. In the Tax section, enter the supplier's GSTIN. PayInvoice Next validates the format (15-character alphanumeric) and checks the state code against the supplier's address.

GSTIN Validation

The system validates GSTIN format automatically. If your organization has enabled government portal verification, the GSTIN is also checked against the GST Network for active registration status. An invalid or inactive GSTIN will display a warning.

7. Enter the PAN (Permanent Account Number). This is required for TDS (Tax Deducted at Source) processing.
8. Select the GST Category — this determines how GST is applied on purchases from this supplier:

GST Category	When to Use
Registered Regular	Standard GST-registered businesses (most common)
Registered Composition	Suppliers under the composition scheme — no input tax credit available
Unregistered	Suppliers without GST registration — reverse charge may apply
SEZ	Suppliers in Special Economic Zones — zero-rated supply
Overseas	International suppliers — IGST on import applies
Deemed Export	Supplies to EOU/STP/EHTP units

Banking Details

9. Scroll to the Bank Account section and click Add Row.
10. Enter the Bank Name, Branch, Account Number, and IFSC Code.
11. If the supplier has multiple bank accounts, add additional rows and mark one as the default.

Bank Details for Payment

Bank account details are required before any payment can be processed to this supplier. You can save the supplier record without bank details, but payment entries will be blocked until banking information is complete.

Address and Contact

12. After saving the supplier, click + Address in the sidebar to add the supplier's registered address, including State and PIN code. The state determines whether purchases are In-State (CGST + SGST) or Out-of-State (IGST).
13. Click + Contact to add the supplier's primary contact person with name, email, and phone number.

Document Verification Checklist

Before marking a supplier as fully verified, confirm the following:

• [ ] GSTIN is valid and active (if GST-registered)
• [ ] PAN matches the legal entity name
• [ ] GST Category is correctly set
• [ ] At least one bank account with IFSC code is entered
• [ ] Registered address with correct State is added
• [ ] Primary contact with email is created
• [ ] TDS category is assigned (if applicable to your organization)
• [ ] Supplier Group is set for correct accounting defaults

Supplier Categories Explained

PayInvoice Next classifies suppliers primarily by their GST registration status. This classification drives automatic tax calculations throughout the procurement cycle:

• Registered Regular — Full GST charged on invoices; you can claim input tax credit. This is the most common category.
• Registered Composition — Supplier charges a lower flat rate; you cannot claim input tax credit on these purchases.
• Unregistered — No GSTIN. Your organization may need to pay GST under the reverse charge mechanism.
• SEZ — Zero-rated supplies from Special Economic Zones. GST is not charged by the supplier.

After Onboarding

Once the supplier record is saved and verified:

• The supplier appears in dropdown lists when creating Purchase Orders, RFQs, and Invoices.
• GSTIN, address, and payment terms auto-fill on procurement documents.
• The Supplier Scorecard begins tracking performance after the first completed transaction.
• The supplier starts with a default Health Standing of Conditional until enough transaction history exists for a full evaluation.

Related Pages

• Supplier Management Overview — How supplier management fits into PayInvoice Next
• Supplier Scorecard — How performance is measured after onboarding
• Purchase Order: Create — Using the supplier in your first PO
• TaxGenie: GST on Purchases — How supplier GST category affects tax calculations