Tutorial: Paying Your First Vendor Bill

In Story Two, we recorded a Vendor Bill for our new high-end laptop. Now, it's time to actually pay the vendor and see how Kezi handles the cash movement and accounting entries.

#Objective

By the end of this tutorial, you will have:

1. Registered a payment for a specific bill.
2. Confirmed the payment to post it to the ledger.
3. Verified the updated status of the Vendor Bill.

#Phase 1: Registering the Payment

1. Navigate to Accounting > Vendor Bills.
2. Find the bill for the "Premium Laptop" (it should be in Posted status).
3. Open the bill.
4. Notice the Outstanding Balance at the bottom.
5. Click the Register Payment button.
6. In the slide-over:
   • Journal: Select Bank.
   • Payment Date: Select today's date.
   • Amount: Keep the full amount (e.g., $2,500).
   • Reference: Enter Payment for Laptop PO-001.
7. Click Create Payment.

#Phase 2: Confirming the Payment

The payment is now in Draft status. It hasn't affected your financial reports yet.

1. Stay on the Payment record (or go to Accounting > Payments to find it).
2. Review the details.
3. Click Confirm.
4. The status changes to Confirmed.

#Phase 3: Verifying the Results

1. Go back to the Vendor Bill.
2. Notice the status has changed to Paid.
3. Scroll to the bottom to see the "Amount Paid" and "Amount Due" ($0).
4. Navigate to Accounting > Journal Entries.
5. Find the entry generated by the payment. You will see:
   • Debit: Accounts Payable (the debt is cleared).
   • Credit: Outstanding Payments (the money is "on the way" out).

#Summary

You have successfully paid your first bill! Your vendor record is now clear.

#Next Step

To complete the financial cycle, you would normally wait for this transaction to appear on your bank statement and then Reconcile it.

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Learning Path

• How to Reconcile Bank Statements
• Understanding Reconciliation