Manage Bills and Vendor Payments

Bills in Kuberan Books represent money your client owes to vendors — accounts payable. Recording bills when invoices are received (rather than when they are paid) gives you an accurate picture of outstanding liabilities and is essential for accrual-basis bookkeeping. Even for cash-basis clients, tracking bills helps you monitor upcoming payments and avoid surprises.

Navigate to Bills

Inside the client’s Books, click Bills. The page has two tabs — Bills and Recurring. Bills carry a status badge (Draft, Pending, Partial, Paid, Overdue, Void, or Written Off), and you can filter by status with the All Statuses dropdown.

The Bills screen. Overdue bills are highlighted so you can prioritise payment follow-up.

Create a bill

The New Bill form is a manual entry form. AI document extraction is a separate path (see the callout below), but the two meet on this list.

1. Click New Bill to open the bill panel.

2. Select the vendor

   Choose the vendor in the Vendor field, or create the vendor contact if it does not exist yet.

3. Enter the invoice/bill number

   The vendor’s invoice number — important for matching payments to the correct bill and for audit purposes.

4. Set the bill date and due date

   The bill date is the date on the vendor’s invoice. Choose the payment terms and Kuberan computes the due date, or enter the due date directly.

AI extraction creates draft bills from the Documents module

To capture a bill from a PDF or image, upload it in the Documents module. When the AI classifies it as a bill it extracts the vendor, bill number, dates, line items, and tax, and creates a draft bill that appears here with a “Created from scanned document” marker. On a scanned bill, only the line-item categories can be edited in Bills — change any other detail by editing the source document in Documents.

Assign accounts to line items

Each line item is assigned to a Category account in the chart of accounts. The Category picker offers expense, cost of goods sold, and asset accounts — so you can capitalise a purchase to an asset account or expense it directly, all from the same picker.

1. In the Category column for each line item, search for and select the appropriate account. Examples:

   • Office supplies → Office Supplies Expense
   • Internet service → Telecommunications Expense
   • Professional fees → Legal and Professional Fees
   • Equipment purchase → an Equipment asset account (if capitalising) or Small Tools & Equipment Expense (if expensing directly)

2. Mark the line taxable if it carries GST/HST

   Tick the Taxable (HST 13%) checkbox on lines that include tax. Kuberan uses this to track input tax credits (ITCs) for the GST/HST return. The bill form applies HST at the standard rate — there is no per-line tax-code dropdown.

Capital vs. expense

The decision to capitalise an asset or expense it immediately affects the Balance Sheet, the Income Statement, and depreciation calculations for years to come. Because the Category picker includes asset accounts, you can make that call directly on the bill line. When in doubt, consult your firm’s capitalisation policy.

Save as draft or finalise

Click Save as Draft to hold the bill for review, or Finalize (Finalize Bill) to post it to accounts payable. A finalised bill appears as a liability on the Balance Sheet (in accrual mode) and moves to Pending in the list.

Bills with inventory items

A bill line tied to an inventory-tracked item raises that item’s quantity on hand and recalculates its weighted-average cost when the bill posts. In practice this happens when a bill is created already finalised — most commonly by converting a purchase order (see below) — because the manual bill form does not have an item picker. A posted bill that carries inventory items cannot be edited; void it (which decrements the quantity back) and re-enter it to make changes. See Inventory accounting.

Convert a purchase order to a bill

If you raised a purchase order first, you can turn it into a bill instead of re-keying it:

1. On the Purchase Orders screen, open the PO (or use its row action menu) and click Convert to Bill.

2. In the Convert to Bill panel, set the Bill Date and Due Date. Tick Post immediately (create journal entry) to finalise the bill on conversion, or leave it off to create a draft.

3. Click Convert to Bill. The new bill carries the PO’s line items and links back to the purchase order.

Record a payment

When the client pays a bill, record the payment to clear it from accounts payable.

1. Open the bill from the list (or use its row action menu) and click Record Payment.

2. Enter the amount — the full balance, or a smaller amount for a partial payment.

3. Enter the payment date — the date the payment left the bank.

4. Select the payment account — the bank or cash account the payment was made from.

5. Choose the payment method — EFT, Check, Credit Card, Cash, or Other — and optionally add a reference number and notes.

6. Save. The bill status changes to Paid, or Partial if a balance remains.

To reconcile the payment against the bank feed, open the bill’s view panel and use Bank Matches to link it to the corresponding bank transaction, so the same cash outflow is not counted twice.

Recording a payment clears the bill from accounts payable; match it to the bank feed to keep balances in sync.

Partial payments

If a vendor is being paid in installments, record each partial payment against the same bill. The bill shows Partial and the remaining balance is visible. Once the balance reaches zero, the bill moves to Paid automatically.

Vendor Payments

The Vendor Payments screen is the vendor-centric counterpart to per-bill payments. Click Pay Bill, select a vendor to load their outstanding bills (Pending, Partial, and Overdue), enter an amount against each under Apply to Outstanding Bills, and click Make Payment — settling several bills in one transaction. Each payment shows an Applied, Partial, or Unapplied status and can be viewed or voided.

What to do next

• Month-end close — review AP aging as part of your close checklist
• Run financial reports — see outstanding bills on the Balance Sheet
• GST/HST return — bills with GST/HST feed into your input tax credit total