Supplier bills and payables

Record supplier bills with their own bill number, pay them from a bank or cash account, raise debit notes and see what you owe each supplier.

A purchase bill is a supplier's invoice to you. You enter it with the supplier's own bill number, issue it into your books, and record each payment you make against it. Debit notes reduce what a bill owes, and the overview shows what you owe each supplier and what falls due this week.

Before you start:

• Your workspace needs the Purchase bill document type. If it is missing, add it in Invoice settings → Document types → Add a document type. Add Debit note there too if you return goods to suppliers.
• Entering a bill needs Can add & edit on its record type; issuing it needs Issue documents under Invoices & quotes; paying it needs Pay supplier bills.

Note: If you don't see Record payment on a bill yet, the owner applies the waiting workspace upgrade — see Upgrade your workspace.

Enter a bill

1. Go to Documents, pick the Purchase bill tab and click New purchase bill.
2. Pick the Supplier.
3. Fill in Supplier bill no. and Supplier bill date exactly as printed on their invoice — for example SR/2026/0417 dated 3 Oct 2026. This is what your input credit is matched on.
4. Add the lines with HSN/SAC, quantity, rate and GST as on the supplier's bill.
5. If TDS applies, pick the section in TDS to deduct. If the supplier charges no GST and you pay it under reverse charge, turn on Reverse charge. See TDS and reverse charge.
6. Click Issue purchase bill.

The bill takes a number from its own series (for example PB/26-27/0012) — your purchase register number, separate from your invoice series. The supplier's number is kept beside it and shows in the editor as Supplier bill. With ledger posting on, issuing posts the expense and input GST against the supplier's payable.

Record a payment

1. Open the issued bill. The Payments made panel says "Nothing paid to the supplier yet."
2. Click Record payment. The dialog shows how much is still due.
3. Fill in:

4. Click Record payment. The payment is posted to the books on its date (Dr supplier payable, Cr your bank), and the bill moves to partially paid or paid.

To undo a payment, click the × beside it and confirm Remove this payment?. Its posting is reversed and the amount is due again.

Note: A payment dated inside a locked period is refused. Removing a payment from a locked period reverses it today.

Payments you make are kept on the bill itself — they are not the customer Payments records in this app, which are money coming in.

Raise a debit note

Use a debit note when you return goods to a supplier or they agree to reduce a bill.

1. Open the bill and choose Convert to debit note from the ⋯ menu.
2. Keep only the lines (and quantities) you are claiming back, then issue it.

The debit note takes its own number (for example DN/26-27/0003). The bill's Payments made panel says "Debit notes settle ₹… of this bill", and the amount due goes down. Your input credit in GSTR-3B is reduced by it.

What you owe

Pick the Purchase bill tab on the Overview:

• The tiles show Billed · 12 months, Paid (to suppliers), Outstanding (still to pay) and Overdue.
• Owed by supplier — each supplier's open balance split by how late it is (not due, 1–30, 31–60, 61–90 and 90+ days), largest first.
• Due this week — bills falling due in the next 7 days.

When TDS or reverse-charge GST applies, the bill notes that part of the total "is not owed to the supplier … pay it to the government instead", and the amount due already leaves it out.

Not covered yet

• One payment across several bills — record a payment on each bill.
• A supplier statement PDF.

Related

• Purchase orders
• TDS and reverse charge
• Document types and ledger posting