Create and manage vendor bills

To help you keep track of how much you owe your vendors and any outstanding values, when you receive an invoice from them, you can record this in Accounting. Before you can record the bill, if you haven’t already done so, you need to create a record for the vendor.

Record expenses (6:51)

If you regularly purchase the same products from a vendor, to save time when entering invoices, you can create a product record.

To record a bill

  • 1. From Expenses, click Vendor Bills.
  • 2. Click New Bill.
  • 3. Enter the following information:
Vendor * Enter the vendor name. As you type, a list of vendors appears. Choose the vendor from the list.
Tip: To add a new vendor, click Add a vendor. Enter the relevant information and Save.
Bill Date * Enter the invoice date.
Due Date * This date automatically calculates from the payment terms entered in the vendor’s record. If you haven’t entered any custom payment terms, it calculates based on the default number of credit days in your company’s Default Settings. If required, you can overwrite this date.
Vendor Reference If required, enter a reference from your vendor, for example, their invoice number.
Reference If required, enter an additional reference, for example, a purchase order number.
  • Indicates a required field.
  • 4. To record the purchase of a specific product, in the [Search for Product] box, type the name of the product and select the product.
  • 5. To add more products to your invoice, repeat the step above.
  • 6. If you don’t want to add a product to the invoice, enter the following information:
Description * The description for the purchase.
Ledger Account * Choose the ledger account for your purchase.
Qty/Hrs * Enter the quantity of items purchased.
Price/Rate * Enter the net value of the item.
  • Indicates a required field.

The total gross value of this item line is shown under Total.

  • 7. If you’ve created transaction analysis types, for example departments, click the Finder and select the relevant analysis category.
  • 8. To add more transactions, on the next line, repeat as above.
  • 9. If required, enter any notes for this purchase.
  • 10. If you want to attach a file (for example, a copy of a vendor bill or receipt), click the attachment button, click Upload files, and then browse to and double-click the file. Learn more about attachments

  • 11. Choose one of the following options:
Save as draft To save the invoice as draft select the Save as draft check box and click Save. Use this option if you’re not ready to send the invoice to your customer yet and don’t want to update the ledger accounts. When you’re ready to issue the invoice, open the draft invoice, make any changes as necessary and clear the Save as draft check box and click Save.
Save To save the invoice only.
Save & New To save the current invoice and then enter a new one.

You’ve successfully entered the details of your vendor bill and it appears on the vendor’s activity. If required, you manage the invoice from the expenses list.

To manage an existing bill

  • 1. From Expenses, click Vendor Bills.
  • 2. Click the required bill.

From here you can edit the existing invoice. To do this, follow the steps in the earlier section To record a bill. If the invoice has already been paid or credited, you can’t change it. For more information, see To edit or void a vendor bill.

You can record a payment against the bill. From More, you can create a credit note or indicate that the bill is now Set as Disputed.

If you dispute an invoice, the values remain in your accounts. You can clear the dispute status from a bill by opening it and then selecting Clear Dispute from More.

To convert a draft invoice

  • 1. From Expenses, click Vendor Bills.
  • 2. Click the bill with a Draft status.
  • 3. If required, change any details on the invoice as necessary.
  • 4. Clear the Save as draft check box and Save.

The bill is no longer in draft and the value appears on the relevant ledger accounts.