When your vendor supplies goods/services to you on credit, you’re sent an invoice that details the amount of money you owe him/her. You can record this as a bill in Zoho Inventory and track it until it’s paid.

Lets see an overview of all operations related to Bills.

Managing Bills
Recording Bill payments

Bills Workflow Diagram

Bills workflow

Bill Status

The status of your bills can be viewed from the Bills tab drop down as shown below,

Creating a bill

To create a bill in Zoho Inventory,

Screen shot of bill creation buttons


screen shot of creating bills from contacts

From Purchase Order

A purchase order that is in the Issued status can be converted to a bill. To do so:

screen shot of creating bills from purchase orders

Creating bills for items with serial numbers

If you’re raising a bill for items which have serial numbers, there are few additional steps that need to be done.

Bill with serial numbers 1

Bill with serial numbers 2

Bill with serial numbers 3

The End Result:

screen shot of a successful bill

Note: Similarly, you’ll be able to record bills for composite items that are serial number tracked.

Recording bills for batch tracked items

Add batches option in bills

Example: Let’s say that you have purchased 20 packs of a disposable item, not necessarily from the same vendor, out of which a few packs expire in the next two days and the rest in a week. Here, you can split the 20 packs into two batches based on its expiration date. Thereby, tracking the number of packs belonging to different batches and determining the batch from which sales should be made.

Entering batch details

Field description:
Field Name Description
Batch Reference# A unique reference number with which the new batches will be saved and tracked.
Manufacturer Batch# Batch number provided by the manufacturer.
Manufactured Date The date on which the item was manufactured.
Expiry Date The date on which the item’s usage expires.
Quantity in Quantity that has been added to each batch.


  • The bill should be in any state between Open and Paid to be able to use the batches in invoices or item adjustments.
  • If you have enabled Approval process for the bills, then your bill must be in Approved state.

Bill with batches

Raising a bill for multiple purchase orders

You can associate many purchase orders and create a single bill for them if the purchase orders are issued to the same vendor.

Important Note: Purchase orders that are billed together must be associated to the same vendor and all purchase orders that need to be billed must be in Issued status.

To do so:

Bill for multiple purchase orders

issued PO popup

Other Options with Bills

screen shot of all options

Important Note: Bills that are partially or fully paid cannot be edited.

Multi-warehouse Operations related to Bills

If you’ve enabled multiple warehouse management for your organization, you will have additional operations related to the Bills. To know more, click here.

Bill Payments

Recording from bill

To record a bill payment:

screen shot of recording payment

Sorting and Viewing Bills

You can sort bills by created time, date, Bill#, vendor name, due date, amount and balance due. This can be done by clicking on the menu icon on the right top corner of the bills tab.

screen shot of the menu drop down

Payments Made

The payments you make on your bills in Zoho Inventory can be viewed by going to the Bills tab. To do so:

Note: These can also be edited or deleted from here.

Clicking on Payment# directly opens the receipt in the Payments Made tab.

screen shot of payments made tab


Once you make an online payment or manually record one in Zoho Inventory, the corresponding receipt will be displayed in the Payments Made tab. The following details will be included:

Options Associated with Bill Payments

screen shot of options in payment receipts