Creating a Bill

A bill is an invoice you receive from a vendor — it records money you owe for goods or services purchased. Bills are the purchase-side equivalent of invoices.

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How to Create a Bill

1. Go to Purchases → Bills
2. Click New Bill
3. Fill in the details
4. Click Save & Approve

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Bill Fields Explained

Header

Field	Required	Description
Vendor	Yes	Select from your contacts — the supplier who sent the bill
Bill Number	Yes	The reference number on the vendor's invoice
Reference	No	Your internal reference or purchase order number
Bill Date	Yes	The date on the vendor's invoice
Due Date	Yes	Payment due date (when you need to pay)
Currency	Yes	Currency of the bill. Defaults to your company currency.

Line Items

Field	Required	Description
Description	Yes	What was purchased
Qty	Yes	Quantity received
Unit	No	Unit of measure
Rate	Yes	Price per unit
Tax	No	Input tax rate applicable
Account	Yes	The expense account (e.g. Cost of Sales, Office Expense)

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Bill Statuses

Status	Meaning
Draft	Saved but not posted. No accounting entries.
Approved	Posted to accounts. Appears in reports.
Partially Paid	Some payments made, balance remains
Paid	Fully settled
Overdue	Past due date with outstanding balance

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What Happens When You Approve a Bill

1. Accounts Payable is credited (money you owe increases)
2. Expense account is debited (cost is recognised)
3. Tax accounts are debited (input tax recorded)
4. The bill appears in your Profit & Loss and Balance Sheet

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Frequently Asked Questions

What's the difference between a bill and an expense?
A bill is for credit purchases — you receive goods/services now and pay later. An expense is typically for immediate cash/card purchases. Bills go through Accounts Payable; expenses go straight to the expense account.

Can I enter a bill in a foreign currency?
Yes. Select the vendor's currency and enter the exchange rate. The system converts to your base currency for reporting.

Can I edit a bill after approving it?
Yes, but it will update the accounting entries. For corrections, consider creating a Debit Note instead.

What if I received a partial shipment?
Enter only the quantities actually received. When the rest arrives, create a new bill for the remaining items.