Bill

Glossary / Bill · Also called Vendor invoice, Supplier invoice, Payable

How it works

What your supplier calls an invoice, your books call a bill. Entering it when it arrives, rather than when you pay, keeps your expenses in the right month and your accounts payable accurate.

Each bill should carry the vendor's invoice number, the bill date, the terms and the due date. The lines say what was bought: an expense account such as rent or repairs, or inventory items. When you pay, the payment is applied to the bill and accounts payable comes down. The expense does not change again.

If you pay something on the spot with no bill to follow, write a cheque or record the card charge directly instead.

Worked example: A repair bill on Net 15 terms

On May 10 a bakery receives a $480 bill for oven repairs, terms Net 15, due May 25.

Entering the bill raises Repairs expense by $480 and accounts payable by $480 in May. On May 24 the bakery pays it. Cash falls by $480 and accounts payable falls by $480. May's profit and loss shows the repair whether the bill was paid in May or June.

In AcboBooks

In AcboBooks, a bill can be entered against expense accounts or items, with terms and a due date, and a receipt photo or scan can fill in the vendor, date and total. Pay Bills lists every open bill across all vendors, applies vendor credits and early-payment discounts, and posts one payment per vendor. Repeating bills can be memorized to enter weekly or monthly.

Related terms

• Accounts payable (A/P)
• Purchase order (PO)
• Item receipt
• Vendor credit
• Aging report
• Accrued expense

Related on this site

• Accounts payable in AcboBooks
• 1099 vendors: from W-9 to filing
• How to record credit card payments and fees

Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.

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