## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/bh/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Bill Reconciliation

Bill Reconciliation helps you avoid overpaying for purchases by verifying bills against purchase orders and purchase receives. Bills that are not associated with purchase orders and purchase receives, or bills that have mismatched item prices will be flagged. A warning will be displayed for those bills.

**Note:** This feature is a part of the Zoho BillPay add-on for Zoho Books. Purchase the add-on to enable the feature for your organisation.

## Enable Bill Reconciliation

To enable Bill Reconciliation:

*   Go to **Settings** in the top right corner of the page.
*   Click **Bills** under _Purchases_.
*   In the _General_ tab, slide the toggle next to _Bill Reconciliation_ to **Enabled**.
*   Choose the reconciliation method.

Matching Method

Description

2-Way Matching

The items in the bill will be compared with the items in the purchase order. If the bill items don’t have an associated purchase order or if there’s a mismatch of items’ prices, then the bill will be flagged with a warning.

3-Way Matching

The items in the bill will be compared with the items in the purchase order and purchase receive. If the items in the bill don’t have an associated purchase order and a purchase receive, or if there’s a mismatch of items’ prices, then the bill will be flagged with a warning.

*   Click **Save**.

![Slide the toggle next to Bill Reconciliation to Enabled](/books/help/images/billpay-addon/bill-reconciliation/enable-bill-reconciliation.png)

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## View Flagged Bills

Bills that are not associated with purchase orders and purchase receives, or have mismatched item prices, will be flagged. A warning is displayed on the Bills List page, the Details page of those bills, and the Record Payment page when such bills are selected for payment.

Here’s how you can view the warning on the Bills module:

*   Go to _Purchases_ on the left sidebar and click **Bills**.
*   Click _All Bills_ at the top and select **Violated Bills** from the dropdown. All bills with violations will be displayed, along with a warning icon next to them.
*   Click any bill. A banner with the reasons why the bill was flagged will be available on its _Details_ page.

![View the banner at the top to view the reasons why the bill was flagged](/books/help/images/billpay-addon/bill-reconciliation/unmatched-items-bill-details-page.png)

*   Click **View Item Details** next to a reason to view additional information.

Here’s how you can view the warning on the Payments Made module:

*   Go to _Purchases_ on the left sidebar and click **Payments Made**.
*   Click **\+ New** in the top right corner of the page.
*   Fill in the required details.
*   If there are flagged bills for the selected vendor, a warning will be displayed below those bills.

![A warning will be shown below bills with unmatched items](/books/help/images/billpay-addon/bill-reconciliation/unmatched-items-record-payment-page.png)

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## Disable Bill Reconciliation

You can disable Bill Reconciliation if required. Here’s how:

*   Go to **Settings** in the top right corner of the page.
*   Click **Bills** under _Purchases_.
*   In the _General_ tab, slide the toggle next to _Bill Reconciliation_ to **Disabled**.
*   Click **Save**.

![Slide the toggle next to Bill Reconciliation to Disabled](/books/help/images/billpay-addon/bill-reconciliation/disable-bill-reconciliation.png)