How to Add Bill

Overview

Recording a bill captures the supplier's invoice in your system, creating an accounts payable entry. This guide covers both scenarios: adding bills linked to purchase orders and creating standalone bills for direct purchases.

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Prerequisites

Before recording a bill:

• Supplier must exist in supplier master
• User has "Create Bill" permission
• Supplier invoice/bill received
• For PO-linked bills: Purchase order should exist
• For inventory items: Material should be received (GRN created)

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Step-by-Step Guide

Step 1: Navigate to Add Bill

1. Click Purchase from sidebar
2. Select Bills from submenu
3. Click Add Bill button (green plus icon)
4. Add Bill form opens

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Step 2: Select Supplier

Supplier Name Field:

• Type supplier name or code to search
• Dropdown shows matching suppliers
• Select correct supplier from list

Auto-Population After Selection:

• Supplier details load (address, GST details, contact)
• Billing address appears (your company address)
• Payment terms default from supplier master
• Supplier's GST number displays for tax validation

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Step 3: Configure Addresses

Supplier Details Dropdown:

• Shows all addresses saved for supplier
• Select supplier's billing/invoice address
• Full address displays below selection

Billing Address:

• Your company's billing location
• Dropdown shows all business units
• Select appropriate billing entity
• Critical for GST calculation (intra/inter-state)

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Step 4: Fill Bill Header Information

Bill# (Bill Number):

• Enter supplier's invoice/bill number
• Free text field
• Use exact number from supplier's invoice
• Required for reference and reconciliation

PO# (Purchase Order):

• Dropdown shows "Select a PO..."
• Lists all open/partially fulfilled POs for selected supplier
• Select PO if bill is against existing order
• Leave blank for direct purchase bills
• When PO selected: Items, prices, quantities auto-fill

Bill Date:

• Date on supplier's invoice
• Format: DD/MM/YYYY
• Defaults to today
• Can backdate if needed
• Used for GST period calculation

Payment Terms:

• Dropdown shows: Net 30, Net 60, Advance, etc.
• Auto-filled from supplier master or PO
• Determines due date calculation
• Editable if different from defaults

Department:

• Optional field for cost allocation
• Dropdown shows active departments
• Select for tracking departmental expenses
• Used in budget monitoring and reports

Due Date:

• Auto-calculated: Bill Date + Payment Terms
• Format: DD/MM/YYYY
• Can be manually adjusted
• Appears in payment queue on this date
• Critical for avoiding late payment penalties

Reference:

• Optional free text field
• Use for: PO reference, project code, internal tracking number
• Helps in cross-referencing and audit trails

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Step 5: Add Line Items (Items Tab)

Item Details Column:

• Click dropdown to search items
• Type item name or code
• Shows: Item code, Item name, Description
• Select item from list
• If PO linked: Items auto-populate from PO

Accounts Column:

• Select expense/asset account for booking
• Dropdown categories:
  • Asset (Fixed Assets, Capital Goods)
  • Expense (Purchase Expenses, Office & Admin)
  • Purchase Expenses (default for inventory items)
• Choose account based on item nature

Quantity:

• Enter numeric quantity billed
• Match with supplier invoice
• If PO linked: Pre-filled from PO, adjust if partial delivery
• Billing more than the PO ordered: allowed, but the system asks you to record a reason for the excess before saving — the reason stays on the bill for review

Unit Price:

• Enter price per unit from supplier bill
• If PO linked: Auto-filled from PO
• Verify against supplier invoice
• Update if price changed

Discount(%):

• Enter discount percentage if applicable
• Calculated on: Qty × Unit Price
• Line amount adjusts automatically

Tax Rate:

• Dropdown: Select GST, IGST 0%, 5%, 12%, 18%, 28%
• Auto-selected based on:
  • Item's HSN code
  • Supplier state vs billing state
  • IGST for inter-state, CGST+SGST for intra-state
• If PO linked: Inherits from PO

Tax Amount:

• Auto-calculated: (Amount after discount) × (Tax Rate / 100)
• Read-only field
• Shown for verification

Amount:

• Final line total: Qty × Unit Price - Discount + Tax
• Auto-calculated
• Read-only

Action Column:

• Trash icon to delete line item

Add More Items:

• Click (+) icon to add new line
• No limit on items per bill

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Step 6: Configure Discount & Tax Settings

Discount Level:

• Discount at item level: Individual discount per line (default)
• Unit is: Unit-based discount application

Tax Type:

• Tax Exclusive: Prices exclude tax (tax added on top)
• Tax Inclusive: Prices include tax (tax extracted from amount)

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Step 7: Add Notes (Optional)

Notes Section:

• Large text area at bottom of Items tab
• Enter internal remarks:
  • Payment instructions
  • Special conditions
  • Quality issues noted
  • Delivery discrepancies
• Not visible to supplier
• Helpful for audit and payment team

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Step 8: Attach Documents (Documents Tab)

Click Documents tab next to Items tab

Documents Dropdown:

• Click "Select a file" dropdown
• Choose document category:
  • Invoice Copy: Supplier's invoice
  • Delivery Challan: Delivery note
  • Delivery Images: Photos of goods
  • E-way Bill: Transportation document
  • Inspection Report: Quality check docs
  • Others: Any supporting files

Upload Process:

• Select category from dropdown
• Click (+) icon to upload file
• Browse and select file from computer
• Supported formats: PDF, Excel, Word, Images
• Files stored in Vault under Bills folder

Multiple Documents:

• Upload multiple files with different categories
• Each category can have multiple files
• Helps in compliance and audit trails

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Step 9: Mark Material Receipt (Documents Tab)

Material Received Checkbox:

• Located below Documents section
• Check if materials physically received
• Required for inventory items

When Checked, Additional Field Appears:

• Inventory Location dropdown
• Two Options:
  1. Dropship: Direct delivery to customer (no stock entry)
  2. [Location Name]: Warehouse/store location for stock entry

Dropship Option:

• Select when goods delivered directly to customer
• No inventory entry created
• Bill recorded but no stock impact
• Shows supplier name in location field

Inventory Location Option:

• Select warehouse/store location
• Stock automatically added to selected location
• Inventory value updates
• GRN auto-created if configured

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Step 10: Review Totals

Summary Section (Bottom Right):

• Sub Total: Sum before tax
• Taxable Amount: Amount on which tax calculated
• IGST or CGST+SGST: Tax breakdown
• Total Amount: Final bill value

Verify all calculations match supplier invoice before submitting.

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Step 11: Save or Submit Bill

Three Action Buttons:

Cancel:

• Discards all changes
• Returns to bills list
• Use if starting over

Save:

• Saves bill as draft
• Status remains "Open" / "Unpaid"
• Can edit later
• Useful for partial completion or pending approvals

Add:

• Finalizes bill entry
• Creates accounts payable entry
• Updates payment queue with due date
• Links to PO (if applicable)
• Updates inventory (if material received)
• Ready for payment processing

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Field Reference

Required Fields

Field	Description	Validation
Supplier Name	Vendor from whom bill received	Must exist in supplier master
Bill#	Supplier's invoice number	Unique reference required
Bill Date	Invoice date	Cannot be future date
Due Date	Payment due date	Should be after bill date
Line Items	Billed items/services	At least one item required

Optional Fields

Field	Purpose	When to Use
PO#	Link to purchase order	When bill is against existing PO
Department	Cost allocation	For departmental expense tracking
Reference	Internal tracking	PO numbers, project codes
Notes	Internal remarks	Special instructions, issues noted
Documents	Supporting files	Invoice copies, delivery proofs
Material Received	Stock entry	When physical goods received

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Common Scenarios

Scenario 1: Bill Against Purchase Order

1. Select supplier
2. Choose PO from PO# dropdown
3. Items, quantities, prices auto-fill
4. Verify amounts match supplier invoice
5. Adjust quantities if partial delivery
6. Check "Material Received" and select location
7. Attach invoice copy in Documents
8. Submit bill

System Actions:

• Links bill to PO
• Updates PO status (Partial/Fully Fulfilled)
• Creates inventory entry (if material received)
• Adds to payment queue

Scenario 2: Direct Purchase Bill (Without PO)

1. Select supplier
2. Leave PO# blank
3. Manually add each item:
   • Select item or enter description
   • Enter quantity and unit price
   • Choose tax rate
4. Add notes if needed
5. Attach supplier invoice
6. Mark material received (if applicable)
7. Submit bill

System Actions:

• Creates standalone bill
• Records accounts payable
• Updates inventory (if marked received)
• Schedules payment based on due date

Scenario 3: Service Bill (Non-Inventory)

1. Select supplier (service provider)
2. Leave PO# blank (usually no PO for services)
3. Add service line items:
   • Select expense account (not inventory)
   • Enter service description
   • Add amount and tax
4. DO NOT check "Material Received"
5. Attach service invoice
6. Submit bill

System Actions:

• Books expense to selected account
• No inventory impact
• Creates payment obligation

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Tips & Best Practices

Pro Tips

Always verify supplier GSTIN on invoice matches master data before creating bill - mismatched GSTIN leads to ITC claim rejections

Link bills to POs whenever possible - enables 3-way matching (PO-GRN-Bill) and automatic variance detection

Attach invoice copy in Documents tab immediately - prevents lost invoices and helps in future audits or disputes

Use Notes field to record any discrepancies found during bill verification - helps payment team and future reconciliation

Mark material as received only after physical verification - prevents stock discrepancies and inventory mismatches

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Troubleshooting

Issue: Supplier not found

• Verify supplier exists in supplier master
• Check supplier status is Active
• Ensure correct spelling

Issue: PO not showing in dropdown

• Check PO status (must be Open or Partial Fulfilled)
• Verify correct supplier selected
• Ensure PO not fully billed already

Issue: Wrong tax calculation

• Verify item HSN code correctness
• Check supplier GST state vs your billing state
• Compare with supplier invoice tax

Issue: Cannot mark material received

• Ensure items are inventory items (not services)
• Check if GRN already created for PO
• Verify inventory module permissions

Issue: Due date not calculating

• Check if payment terms selected
• Verify bill date is correct
• Manually set due date if auto-calculation fails

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Need help? Contact support at support@bizconnekt.com