# Bills

> Record supplier bills, track what you owe, and pay them individually or in a batch.

Source: https://www.accountfun.com/docs/guides/bills/

Bills track money you owe suppliers — the mirror of [invoices](https://www.accountfun.com/docs/guides/invoices/). AccountFUN handles the full lifecycle, posts the payable to your ledger on approval, and lets you pay one bill or many at once.

## Create a bill

1. Go to **Bills → New Bill**.
2. In **Bill Details**, set the **Supplier**, **Currency**, **Issue Date**, and **Due Date** (defaults to 30 days from issue).
3. Add **Line Items** — pick a product/service (auto-fills the purchase details), or type each line: **Description, Qty, Price, Discount, Account, and Tax**. Line accounts are filtered to expense and asset types.
4. Set the **Tax Mode** — **No Tax**, **Tax Exclusive**, or **Tax Inclusive**.
5. Save as **draft**, or use `Create & Approve` if your role has **Approve Documents** (Admin, Accountant and Standard by default).

Bills get a sequential number with your org’s prefix (default `BILL-0001`).

## The approval workflow

Identical shape to invoices — approval is what posts to the ledger.

```text
DRAFT ──Submit──▶ SUBMITTED ──Approve──▶ APPROVED ──paid in full──▶ PAID
  │                  │                       │
  └──────Approve (skip) ─────────────────────┘   also: VOIDED
```

| Status                            | Meaning                                    | In your books?                       |
| --------------------------------- | ------------------------------------------ | ------------------------------------ |
| **Draft**                         | Saved, not yet reviewed                    | No                                   |
| **Submitted** (Awaiting Approval) | Waiting for someone with Approve Documents | No                                   |
| **Approved** (Awaiting Payment)   | Posted — you owe the supplier              | Yes (Dr Expense/Asset + Tax / Cr AP) |
| **Paid**                          | Fully paid or credited                     | Yes                                  |
| **Voided**                        | Cancelled; reversal posted                 | Reversed                             |

Voided bills are hidden

The bills list excludes voided bills entirely (there’s no Voided tab). Tick **Include Deleted & Voided** in the search panel if you need to find one.

## Paying bills

When a bill is **Approved** with a balance, a **Record Payment** button appears. Pick the bank account, date, amount, and (for cross-currency) the exchange rate. The bill moves to **Paid** when its balance hits zero.

To pay several bills at once, select them on the **Approved** tab and click **Batch Payment** — see [Payments](https://www.accountfun.com/docs/guides/payments/) for the batch flow. Bills can also clear automatically when an outgoing bank line matches them during [reconciliation](https://www.accountfun.com/docs/guides/bank-reconciliation/).

## Related features

* **[Purchase orders](https://www.accountfun.com/docs/guides/purchase-orders/)** — authorize a purchase before the bill arrives, then convert to a bill.
* **Payable [credit notes](https://www.accountfun.com/docs/guides/credit-notes/)** — record a supplier refund or reduce a bill.
* **[Expense claims](https://www.accountfun.com/docs/guides/expense-claims/)** — staff submit out-of-pocket expenses; approval creates a bill automatically.
* **[Recurring templates](https://www.accountfun.com/docs/guides/recurring-templates/)** — auto-generate the same bill monthly (rent, subscriptions).

## Worked example: a supplier bill with tax

You receive an electricity bill for $230 including 10% tax.

1. **Bills → New Bill**, supplier “PowerCo”.
2. Line 1: *Electricity — June*, Qty 1, Price $230, account **Utilities**, Tax **Tax on Purchases (10%)**.
3. Tax Mode **Tax Inclusive** (the $230 already includes tax). AccountFUN backs out the tax: Subtotal $209.09, Tax $20.91.
4. `Create & Approve`. **BILL-0008** posts — your Utilities expense rises by $209.09, input-tax receivable by $20.91, and you owe PowerCo $230.

When you pay, **Record Payment** → bank **Business Checking**, $230. Done.