Vendor Bills

What it is

Vendor Bills is your accounts-payable list: the bills your suppliers send you. Each bill records the vendor, tax split and which lines are eligible for input tax credit (ITC), so it can be matched against GSTR-2B later. Find it at Finance → Vendor Bills. Your role needs access to vendor bills, and bills belong to a vendor, which you add under Finance → Vendors.

Record a bill

• Open Finance → Vendor Bills and click 'New bill'.
• Choose the Vendor and enter the Vendor's bill number. Bill date defaults to today; Due date and Category are optional.
• Tick 'Reverse charge liability' if it applies.
• Add line items: Description, HSN/SAC, Qty, price, tax rate and cess. New lines start at 18% tax.
• Untick the ITC box on lines where credit is blocked (Section 17(5), for example employee welfare or motor vehicles). Those show as 'Blocked' on the bill.
• Click 'Save as draft'. The CGST/SGST/IGST split is worked out on save from the vendor's state.

Draft, approve, pay

• Draft: you can Edit the line items, 'Approve' it or Cancel it.
• Approved: use 'Record payment' with amount, mode, date and reference. You cannot pay more than the balance.
• Partially paid and Paid follow automatically as payments are recorded.
• Cancel is available until a bill is paid and cannot be undone.

Limits

• A vendor cannot have two bills with the same bill number: you get 'This vendor already has a bill with this number'.
• Only a draft bill can be approved or edited. Once approved, a bill is locked.
• On screen, Edit changes the line items of a draft; to correct anything else, cancel the bill and enter it again.

Totals and the vendor ledger

The list shows Bill #, Vendor, Date, Due, Total, Balance and Status, can be filtered by status (Draft, Approved, Partially paid, Paid, Cancelled) and exported. The figure at the top adds up what is still owed on approved and partly paid bills. The bill page shows subtotal, tax by head, round-off, ITC-eligible tax, payments and an Attachments panel for the vendor's scanned bill.

GSTR-2B reconciliation

Bills that are not cancelled can be used as the books side when you reconcile against GSTR-2B at Finance → GST 2B recon. Make sure each vendor has a GSTIN so bills can be matched.