- What is a bill?
- Creating a bill
- Bill Payments
- Landed Costs
- Associate Customers and Projects
- 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 Purchases > Bills.
- Click + or + New button in the top right corner of the page.
- Enter the required information such as the vendor, bill number and customer details for the bill.
- 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 click 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.
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.
Landed cost of a product is the total cost involved in bringing a product to the seller’s warehouse apart from the cost of goods. This is usually the freight, shipping charges, customs and other charges that the seller may incur till he procures the goods.
Tracking the landed costs help us to calculate the exact amount spent on getting the product to your hands. This, in turn, helps you to decide the selling price for your stock without compromising your profits.
Enabling Landed Costs
To track landed costs, you must enable landed costs for your organization.
- Click the Gear icon in the top-right corner.
- Select Preferences and navigate to the Items tab.
- Enable the checkbox I want to track landed cost on items.
- Click Save.
Note: You will be able to enable landed costs only if you have enabled inventory tracking for your organization. To enable it, please check I would like to enable Inventory (Settings → Preferences → Items → Inventory).
Allocating Landed Costs
Once you have enabled Landed Costs for your organization, you will be able to add and allocate them to the items in your bills.
Step 1: Adding Landed Costs to Bills
- Go to the Purchases module and select Bills.
- Create a new bill and enter the items.
- Click + Landed Cost and enter the additional cost incurred as an item (Eg. Freight). You can create a new item as a Service or choose one that you might have created already.
- Click Save as Draft or click Save as Open and Apply Landed Costs to start allocating the costs to items. > Note: Landed Costs can be allocated only to items for which inventory is tracked.
Step 2: Allocating Landed Costs to Items in the Bill
Once you have added the landed costs to a bill, you will be able to allocate them to the bill items proportionately. There are two ways to do this:
1) Allocating landed costs while creating a bill:
- Create a new bill with Landed Costs and click Save as Open and Apply Landed Costs.
- In the popup that appears, you will be able to allocate the landed costs to the bill proportionately based on the Value or Quantity of the items.
- Edit the Charge fields if you would like to make changes to the costs calculated.
- Click Save & Next if there are two or more landed costs to be allocated.
- Click Skip if you wish to allocate the landed cost later.
- Click Save.
Note: You can also choose not to allocate any landed costs to that particular bill and allocate them to other bills.
2) Allocating the landed costs to an existing bill:
- Click the Allocate Landed Costs button on your bill details page to allocate it to a bill.
- In the pop-up that appears, allocate the charges proportionately and click Save.
Note: You can also edit bills created earlier to add landed costs to them and allocate it.
Allocating Landed Costs from One Bill to Another
There may be cases where your vendor does not offer any shipping for the product and you get it shipped by another shipping agency, in that case, you can create a separate bill with just the landed costs and apply them to another bill. You can also apply any unused landed costs from other bills. To do this:
- Go to the particular bill to which you want to allocate the landed cost.
- Click the More dropdown and click Add Landed Costs.
- In the pop-up that appears, select the Vendor, the Bill number from which you would like to allocate the cost, and the landed cost.
- Allocate the landed costs proportionately and click Save.
Associate Customers and Projects
You will be able to add details of your customers and their associated projects to your bills. You can also mark them as billable if you purchase it for a customer. This will help you to create invoices quickly for your customer. Here is a scenario to explain this better:
John runs a TV service center and is asked to repair a customer’s TV. This might require him to purchase some spare parts from his vendor. When he records the bill in Zoho Books, he can associate the customer and mark it as billable. When John raises an invoice for the customer, the unbilled items are prompted so he can add it to his invoice. Or, he will also be able to create an invoice directly from the bill and send it to his customer.
To do this:
- Record a bill with the vendor and item details.
- Select a customer under the Customer Details section in the item table.
- Click the edit icon to view your Billing Preferences.
- Mark the option Billable if the purchase is for a customer.
- Select the Project if there is any project associated with this bill and for this customer.
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. 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 Filters are specific views 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.