Manage Vendor Bills

This guide covers the practical steps for creating, managing, and paying vendor bills in the system.

For a conceptual overview of vendor bills and accounting impacts, see Understanding Vendor Bills. For a step-by-step walkthrough for beginners, see Tutorial: Recording Your First Vendor Bill.

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#Create a Standard Vendor Bill

1. Navigate to Accounting > Purchases > Vendor Bills.
2. Click Create.
3. Bill Header:
   • Vendor: Select the supplier.
   • Bill Date: The date on the received invoice.
   • Reference: The vendor's invoice number (critical for duplicate detection).
4. Invoice Lines:
   • Select a Product for automatic account coding, or manually enter a Label and Account.
   • Verify the Quantity and Price.
   • Ensure the correct Taxes are selected.
5. Attachments: Drag and drop the scanned invoice PDF onto the form or use the attachment clip icon to upload it.
6. Click Post to finalize the bill.

#Register a Payment

Once a bill is posted, you can register a payment directly from the bill view.

1. Open the Posted Bill.
2. Click the Register Payment button.
3. Journal: Select the Bank or Cash journal you are paying from.
4. Amount: The full amount is selected by default. Change this if making a partial payment.
5. Payment Date: Date the money left your account.
6. Click Create Payment.

The bill status will change to In Payment or Paid.

#Handle a Credit Note (Vendor Refund)

If a vendor sends you a refund or you return goods, you must record a Credit Note (Debit Note).

1. Navigate to Accounting > Purchases > Refunds.
2. Click Create.
3. Fill it out exactly like a Vendor Bill, but note that the accounting entry is reversed (Debits Accounts Payable).
4. Tip: You can also open an existing Vendor Bill and click Add Credit Note to pre-fill the refund with the original bill's data.

#Manage Specific Scenarios

#Multi-Currency Bills

1. On the bill header, change the Currency to the vendor's currency (e.g., USD).
2. The system effectively locks the exchange rate at the moment of posting based on the daily rate.
3. To use a custom rate, edit the Exchange Rate field before posting.

#Recurring Bills

For monthly expenses like rent or internet:

1. Create a bill as usual.
2. Instead of posting, look for the Recurring action (or "Create Recurring Template").
3. Set the frequency (e.g., Monthly) and the next execution date.
4. The system will automatically generate a Draft bill on the scheduled date.

#3-Way Matching (Bill + PO + Receipt)

If you use the Inventory app:

1. Make sure the Purchase Order (PO) is confirmed and products are received.
2. On the Vendor Bill, use the Auto-Complete feature (often found near the Vendor name or as a "Generate from PO" button).
3. Select the relevant Purchase Order.
4. The system pulls in line items based on what has been received, not just what was ordered, ensuring you only pay for what you got.

#Troubleshooting

• Cannot Post?: Check if the Bill Date is in a closed fiscal period.
• Wrong Tax Amount?: Verify the Tax setting on the specific line item. You can manually adjust the tax amount field if there is a rounding difference with the vendor's paper invoice.