- What is a bill?
- Creating a bill
- Bill Payments
- Associate customers to bills
- Bill Status
- Other options
- Payments Made
- Custom Views
What is a bill?
When your vendor supplies goods/services to you on credit, you’re sent an invoice that details the amount of money you owe him. You can record this as a bill in Zoho Books and track it until it’s paid.
Creating a bill
To create a bill in Zoho Books,
- Go to the Purchases tab on the home page. Scroll down to Bills.
- Click the ‘+’ or + New button.
- Enter the required information such as the bill number and vendor towards whom the bill is payable.
- Click Save as Draft or Save as Open.
- Go to the Contacts tab and select the vendor to whom money is owed.
- Click on New Transaction -> Bill.
- Enter the required details and click Save as Draft or Save as Open to create the bill.
From Purchase Order
A purchase order that is in the open status can be converted to a bill by opening it and selecting the option Convert to bill. All the details such as the vendor name and items list will be autofilled.
A recurring bill represents money owed to a vendor on a periodic basis, and recording it can be automated in Zoho Books. An example of such a bill would be the monthly charges you owe your internet vendor.
To create and automate a recurring bill,
- Go to the Purchases tab on the home page of Zoho Books, and scroll down to Recurring Bills.
- Click on the ‘+’ icon.
- Provide the required information such as vendor name and recurring frequency and hit Save.
You can also make an existing bill recurring by clicking on it and selecting More -> Make recurring. Enter the required information and hit Save.
Update ABN while creating a Bill or Recurring Bill
You can update the ABN for a vendor while creating a bill or recurring bill if the ABN has not been added to the vendor contact. Updating it here will add it to the vendor contact.
To update ABN,
- Go to Bills in the Purchases module.
- Click on the New button.
- Select a Vendor to bill and if the Vendor contact does not have an ABN, No ABN added is displayed under the name.
- Click on it if you have an ABN for the vendor and enter the ABN.
- Click Update and proceed with billing the vendor.
Recording from bill
You can record a bill payment by opening the bill and selecting the option Record Payment. You’re required to fill in the details of the payment, such as the amount and date etc. Once you save the payment, the status of the bill changes to Paid or Partially paid accordingly.
Applying vendor credits
You can create and apply a credit you’ve received from a particular vendor on a bill that is in his/her name. The credit amount you’re owed is subtracted from the bill amount accordingly.
Learn how to do this.
Withhold tax when ABN is not quoted
When you create a Bill for a vendor who does not have an ABN and make payments, Zoho Books allows you to withhold a certain percentage of the amount as tax which must be paid to the ATO.
When you record payment for the Bill, check the Tax Deducted? option and the Amount Withheld field appears.
- Enter the amount you must withhold and select the appropriate account.
- Tax Account lists only the accounts available under the Other Current Liability account type. You can create an Account under the Other Current Liability to track all the withheld amount separately.
P.S. The sum of Payment Made and Amount Withheld must not exceed the Total bill amount.
Tax Withheld Summary Report
Zoho Books generates a report of tax withheld for each vendor without ABN. You can generate a customized report for a period of time according to your need with the Customization option. By default, This Year is selected to generate the Annual Report. You can also view details of the payments made to each vendor by clicking on the Vendor from the Report.
To view the report,
- Go to the Reports module.
- Select Tax Withheld Summary under the Taxes section to see the annual report.
- Click on the Total of Tax Withheld amount of each vendor to see the list of bills for which the tax has been withheld.
- Click on the This Year button on the top bar to change the period for which you wish to see the report.
Associate customers to bills
You can associate customers to line items in the bill and mark them as billable by clicking on the icon. If an item is marked as billable, the next time you create an invoice for that customer the number of unbilled bills will be displayed and you can choose to add them to your invoice.
The status of your bills can be viewed from the Bills tab drop down as shown below,
- Draft - The bills that you’ve saved as draft will be in the Draft status. Bills in draft status will not have any impact in accounts, inventory or reports.
- Open - The bills that you’ve saved as open and are yet to be paid will be in Open status.
- Overdue - The due date for these bills has passed and payment needs to be made promptly, probably with an overdue penalty if levied by the vendor.
- Partially Paid - A portion of these bills have been paid and the remaining amount is outstanding.
- Paid - These bills has been completely paid.
- Unpaid - All your outstanding bills, whether Open, Overdue or Partially Paid.
- Void - These bills have been made redundant.
- Void - You can void a bill by opening it and selecting More - Void. The note will be rendered invalid. This action can be reverted by selecting the void bill, clicking the More - Convert to Draft.
- Delete - You can delete a bill by opening it and selecting More - Delete.
- Edit - You can edit a bill by opening it and clicking on the pencil icon in the top left corner
- Print - You can print a copy of a bill by opening it and clicking on the print icon in the top left corner.
- PDF - Download the bill in portable form by simply opening it and selecting the* PDF* icon in the top left corner.
The payments you make on your bills in Zoho Books can be viewed under the Payments Made tab. A receipt for these payments can be seen here, with details such as date, payment mode and amount.
You can also view the payments you’ve made by going to the Bills tab. Open a Paid bill and scroll down to view the payment details. These can also be edited or deleted from here. Clicking on the payment number # directly opens the receipt in the Payments Made tab.
Once you make an online payment or manually record one in Zoho Books, the corresponding receipt will be displayed in the Payments Made tab. Learn more
Custom Views are specific filters to list your bills based on your criteria.
For example, out of all your bills in Zoho Books, you might want to view those bills that are greater than $2000.
With Custom Views, you can simply create this filter. All you have to do is set criteria and later use it to classify data.
You can find an example GIF image to understand how custom views work.
To create a Custom View:
- Go to the Bills module.
- Under the All Bills drop down, present at the top left, select + New Custom View.
- In the following page, give an appropriate Name to your view, define Criteria, Column Preference (i.e. columns which you want to see in the filtered results).
- Click Save.
Your new custom field will now be listed under Created By Me, in the dropdown.
Note: Custom views can be created for both Bills and Recurring Bills.