Bills

What is a bill?

A Bill is a financial document that is sent to you by your vendor. It contains the the details of your purchase from them.

Status of a Bill

Status Description
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.

Creating a bill

To create a bill in Zoho Books:

Create Bill

You can also create bills from the vendors:

Creating a bill

From Purchase Order

To convert a purchase order to a bill, it must be in the Open status:

Creating a bill from purchase order

Recurring Bill

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:

Fields Description
Vendor Name The vendor for whom you will be creating the recurring bill
Profile Name Enter a profile name for the recurring bill
Repeat Every Select the frequency of the bill or the time period for which it should be generated. You can also set a unique period by selecting Custom
Start On/End On The date range for the recurring bill. If you want it to generate continually, Select the Never Expires checkbox
Payment Terms The date of payment of the bill
Item Rates Are Select VAT Exclusive if the item rate doesn’t include VAT and VAT Inclusive it it does
Item Details Enter the necesssary item details and select the VAT to be applied
Notes Enter any details for internal purpose

You can also make an existing bill recurring by:

Creating a recurring bill

Bill Payments

Recording payments manually

You can record a bill payment by following these steps:

Recording a bill payment

Fields Description
Payment Made By default, the total amount of the bill is shown. If you wish to record a part of the payment, you can enter that amount here and its status will be Partially Paid.
Payment Date Date on which the payment is recorded.
Paid through Select the account through which you wish to record the payment.
Reference# You can cadd a number for your reference.
Notes The details of your transaction.
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 Costs

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.

Enable Landed Costs

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

Add Landed Costs

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 three ways to do this:

1) Allocating landed costs while creating a bill:

Allocate Landed Costs-1

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:

Allocate Landed Costs-2

Allocate Landed Costs Popup

Note: You can also edit bills created earlier to add landed costs to them and allocate it.

3) Allocating Landed Costs to a Bill of Entry:

Allocate Landed Costs-3

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:

Allocate Landed Costs to another bill

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:

Other Options

After a bill is created, you can perform the following actions by selecting the particular bill:

Other Actions

Fields Description
Edit You can edit a bill clicking the edit icon on the top left corner.
Void You can void a bill by opening it and selecting More and clicking Void. The note will be rendered invalid. This action can be reverted by selecting the void bill, clicking More and Convert to Draft.
Clone A bill can be cloned and all the details can be auto-filled in a New Bill page.
Delete You can delete a bill by opening it and selecting More and Delete.
Print You can print a copy of a bill clicking on the print icon in the top left of the page.
PDF Download the bill in PDF format by clicking the PDF icon next to the edit icon.
Attach Files Files can be attached by clicking the pin icon next to the print icon.

Note
To void such bills in the Paid status, delete the payment received for that bill and then void it.

Payments Made

The payments you make for 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.

There are two ways in which you can view the payments made for you bills:

Payments Made

Bills

Payments made

Note
Once you make an online payment or manually record one in Zoho Books, the corresponding receipt will be displayed in the Payments Made tab.

Custom Views

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.

To create a Custom View:

Custom View

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.

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