Recording Vendor Bills

Recording Vendor Bills

Recording vendor bills accurately is crucial for maintaining proper accounts payable and ensuring all supplier invoices are tracked correctly in EquiBillBook. This guide covers the process of recording bills received from vendors.

What is a Vendor Bill?

A vendor bill (also called supplier invoice or purchase bill) is a document received from a supplier that shows:

• Items or services purchased
• Quantities and prices
• Taxes applicable
• Total amount due
• Payment terms and due date

When to Record Vendor Bills

Record vendor bills when:

• You receive an invoice from a supplier
• Goods or services have been received
• You need to track accounts payable
• You want to record expenses for accounting
• Stock needs to be updated (for inventory items)

Recording a Vendor Bill

To record a vendor bill:

1. Navigate to Purchase → Purchase Bill
2. Click "Create New" or "Add Purchase Bill"
3. Select the Supplier from the dropdown
4. Enter the Purchase Date (usually the date on the vendor invoice)
5. Enter the Reference Number (vendor's invoice number)
6. Set the Due Date based on payment terms

Entering Bill Details

Enter information from the vendor invoice:

• Bill Number: Auto-generated or enter manually
• Reference Number: Vendor's invoice number (important for matching)
• Bill Date: Date from vendor invoice
• Due Date: Payment due date (based on terms)
• Items: Add all items from the vendor invoice
• Amounts: Enter subtotals, taxes, and total

Matching Vendor Invoice Details

Ensure the bill matches the vendor invoice:

• Verify supplier name and details
• Check invoice number matches reference number
• Confirm invoice date
• Verify item quantities and prices
• Check tax amounts
• Verify total amount
• Confirm payment terms

Adding Items from Vendor Invoice

Add items exactly as shown on the vendor invoice:

1. For each item on the invoice, add it to the purchase bill
2. Enter the quantity as shown
3. Enter the unit price from the invoice
4. Verify tax rates match the invoice
5. Check that totals match

Attaching Vendor Documents

You can attach:

• Original vendor invoice (PDF or image)
• Delivery challan or receipt
• Purchase order (if applicable)
• Other supporting documents

Attachments help with:

• Audit trails
• Dispute resolution
• Record keeping
• Compliance

Recording Bills with Different Scenarios

Bill Received Before Goods

If you receive the bill before goods:

• Record the bill as received
• Stock will be added when goods arrive (if tracking enabled)
• Update status when goods are received

Goods Received Before Bill

If goods arrive before the bill:

• You may create a purchase order first
• Record the bill when received
• Match the bill to the purchase order

Partial Delivery

For partial deliveries:

• Record bills as goods are received
• Create separate bills for each delivery
• Or record partial quantities on one bill

Verification Checklist

Before finalizing a vendor bill, verify:

• ✓ Supplier details are correct
• ✓ Reference number matches vendor invoice
• ✓ Dates are accurate
• ✓ All items are included
• ✓ Quantities match the invoice
• ✓ Prices match the invoice
• ✓ Tax calculations are correct
• ✓ Total amount matches vendor invoice
• ✓ Payment terms are set correctly
• ✓ Documents are attached (if applicable)

Recording Multiple Bills

For bulk recording:

• Record bills one at a time for accuracy
• Use consistent reference numbers
• Verify each bill before moving to the next
• Consider using import features if available

Bill Approval Process

If approval is required:

• Save the bill as draft
• Submit for approval
• Approver reviews and approves
• Bill status changes to approved
• Payment can then be processed

Best Practices

• Record bills promptly when received
• Always enter the vendor invoice number as reference
• Attach vendor invoices for documentation
• Verify all amounts before finalizing
• Match bills to purchase orders when applicable
• Keep bills organized by date or supplier
• Review bills regularly for accuracy
• Set up reminders for due dates

Common Mistakes to Avoid

• Not entering vendor invoice number
• Entering wrong dates
• Missing items from the invoice
• Incorrect tax calculations
• Not attaching vendor documents
• Recording duplicate bills
• Wrong supplier selection

Troubleshooting

If you encounter issues:

• Can't find supplier: Ensure supplier is created and active
• Items not found: Verify items exist in item master
• Tax not calculating: Check item and supplier tax settings
• Amount mismatch: Review all line items and calculations
• Duplicate bill: Check reference numbers to avoid duplicates

After Recording the Bill

Once a vendor bill is recorded:

• It appears in accounts payable
• Supplier balance is updated
• Stock is updated (for inventory items)
• Purchase reports are updated
• Payment can be recorded against it
• It's available for tax reporting

Accurately recording vendor bills ensures proper financial tracking, compliance, and timely payments. Take time to verify details and maintain good documentation practices.