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 Viewโ
The Vendor Bills table displays all bills with relevant columns.
Creating a Vendor Billโ
Click the Create Vendor Bill button in the top-right corner to open the creation side panel. The form includes the following fields:
| Field | Required | Description |
|---|---|---|
| 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 Entriesโ
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.
Workflowโ
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.