💵Vendor Bills
The Vendor Bills section allows you to manage bills received from vendors and suppliers. Each bill tracks the amount owed, due date, and associated expense account. Journal entries are automatically generated when bills are created, marked as paid, or deleted.
List View
The Vendor Bills table displays all bills with relevant columns.
Creating a Vendor Bill
Click the Create Vendor Bill button in the top-right corner to open the creation side panel. The form includes the following fields:
Vendor / Supplier
Yes
Search and select the vendor or supplier. This is a searchable dropdown field.
Bill Date
Yes
The date the bill was issued.
Due Date
Yes
The date by which the bill must be paid.
Amount
Yes
The total bill amount.
Tax Rate
No
Optionally apply a tax rate to the bill.
Description
No
A description of the bill or goods/services received.
Expense Account
Yes
The expense account to categorize this bill against.
Reference
No
An external reference number (e.g., the vendor's invoice number).
Automatic Journal Entries
The system creates journal entries at multiple points in a vendor bill's lifecycle:
Bill created — Debits the selected Expense Account and credits Accounts Payable, recording the liability immediately.
Bill marked as paid — Debits Accounts Payable and credits Cash / Bank, clearing the liability.
Bill deleted — Creates a reversing journal entry (debits Accounts Payable, credits Expense Account) to undo the original.
See Journal Entries for the full list of auto-creation triggers.
Workflow
A typical vendor bill workflow follows these steps:
Receive the bill — Create a new vendor bill record with the bill details.
Review and approve — Verify the bill details are correct.
Record payment — When you pay the bill, create a corresponding payment record in the Payments section.
Reconcile — Match the payment against bank statements during reconciliation.
Last updated