Bills Overview
What is Bills?
Bills (also called Supplier Invoices or Purchase Bills) are records of amounts owed to suppliers for goods or services received. They capture the supplier's invoice details, link to purchase orders, track payment obligations, and manage your accounts payable efficiently.
Who Uses This?
Accounts Payable Team
Record supplier invoices and manage payment schedules
Purchase Team
Verify bills against purchase orders and receipts
Warehouse Team
Confirm material received before bill approval
Finance Head
Monitor payables, cash flow, and vendor payments
Key Features
Bill Management
- PO Linking: Auto-fetch details from purchase orders
- Multi-Item Bills: Record multiple items per invoice
- Tax Calculation: Automatic GST computation based on supplier GSTIN
- Document Types: Categorize as invoice, delivery challan, e-way bill, etc.
- Material Tracking: Mark materials as received with dropship/inventory options
Payment & Compliance
- Payment Terms: Track Net 30, Net 60, advance payments
- Due Date Tracking: Auto-calculate payment due dates
- Dispatch Status: Monitor delivery and dispatch progress
- GST Compliance: Capture supplier GSTIN for ITC claims
- Notes & Remarks: Add internal notes for reference
How It Works
Typical Workflow
- Receive Invoice: Supplier sends bill for goods/services delivered
- Create Bill: Enter bill details or link to existing PO
- Verify Receipt: Confirm materials received (mark as received if applicable)
- Select Location: Choose inventory location for dropship/stock items
- Review & Save: Verify amounts, taxes, and submit bill
- Schedule Payment: Bill appears in payment queue with due date
- Make Payment: Process payment and mark bill as paid
Bill Status Flow
Alternative Statuses:
- In Review: Pending approval (if workflow enabled)
- Unpaid: Payment overdue
Bill Linking Options
| Link Type | When to Use | Benefits |
|---|---|---|
| With PO | When purchase order exists | Auto-fills items, prices, supplier details; easy 3-way matching |
| Without PO | Direct purchases, utilities, services | Manual entry of all details; flexible for ad-hoc expenses |
Document Categories
| Category | Description | Example Use |
|---|---|---|
| Invoice Copy | Supplier's original invoice | Tax invoice for goods purchased |
| Delivery Challan | Goods delivery note | Proof of delivery document |
| Delivery Images | Photos of delivered goods | Quality verification, damage proof |
| E-way Bill | Transportation document | Inter-state goods movement |
| Inspection Report | Quality check documentation | Technical specifications verification |
| Others | Any supporting documents | Correspondence, agreements, etc. |
Key Metrics to Track
| Metric | What It Shows | Why Important |
|---|---|---|
| Bill Amount | Total invoice value including tax | Cash flow planning and budget tracking |
| Due Date | Payment deadline | Avoid late payment penalties, maintain supplier relations |
| Payment Status | Open/Partial Paid/Paid | Track outstanding payables |
| Dispatch Status | Delivery progress tracking | Monitor fulfillment completion |
Getting Started
| Task | Guide | Time Required |
|---|---|---|
| Record New Bill | How to Add Bill | 3-5 minutes |
| View Bill Details | How to View Bills | 2 minutes |
| Edit Bill | How to Edit Bill | 3 minutes |
| Link to Payment | Field Reference | 5 minutes |
Related Sections
- Purchase Orders - Link bills to POs for 3-way matching
- Suppliers - Manage supplier master
- Payment Made - Process supplier payments
Quick Tips
Best Practices
Always link bills to POs when available - enables automatic 3-way matching (PO-GRN-Bill) and prevents pricing errors
Verify supplier GSTIN on bills matches master data - ensures correct GST calculation and valid input tax credit claims
Mark material as received during bill entry - triggers inventory update and maintains accurate stock levels
Use document categories to organize attachments - makes audit trails clear and compliance reporting easier
Need help? Contact support at support@bizconnekt.com