Guides
Purchase
Bills

Bills

Lekha’s Bills module provides a comprehensive solution for managing vendor bills and invoices—streamlining the process from receipt to payment authorization. Designed for accuracy and efficiency, it helps you record, verify, and process vendor bills while maintaining complete audit trails and payment schedules.

With customizable fields like vendor selection, purchase order references, payment terms, billing addresses, line items, and tax breakdowns, you can accurately record vendor bills and ensure proper payment processing in just a few clicks.

Each bill supports automatic due date calculations, multi-currency handling, and detailed line-level item specifications, allowing you to track payment obligations and align cash flow management. Seamless integration with purchase orders and payment processing ensures accurate bill matching and transparent documentation throughout the payables lifecycle.

The system enhances financial controls, minimizes payment errors, and accelerates your procure-to-pay cycle—making it easier to maintain vendor relationships with confidence.

Listing Bills

The bills list provides a comprehensive view of all vendor bills with powerful filtering and management capabilities.

Default View

  • Bills are listed by creation time in descending order (newest first)
  • Each row displays key information: bill number, vendor, date, due date, state, and total amount
  • Click on any row to view detailed information for that bill

Sorting Options

You can sort the list by clicking on column headers:

  • Bill Number - Alphanumeric sorting
  • Vendor - Vendor name sorting
  • Bill Date - Date-based sorting
  • Due Date - Payment due date sorting
  • State - Status-based sorting (Draft, Issued, etc.)
  • Total Amount - Monetary value sorting

Filtering by State

Use the state filter to view specific types of bills:

  • Draft - Bills still being prepared
  • Submitted - Bills waiting for approval
  • Approved - Bills approved and ready to issue
  • Issued - Finalized invoices sent to customers
  • Confirmed - Bills confirmed and affecting inventory
  • Partially Paid - Bills with partial payments received
  • Paid - Fully paid invoices
  • Cancelled - Cancelled invoices

Available Actions

Individual Actions:

  • View Details - Click on bill row to see complete information
  • Edit - Modify draft bills
  • Send Email - Send email for the specific bill
  • Capture Payment - Generate payment for issued bills

Bulk Actions:

  • Bulk Print - Print multiple bills at once

Creating a New Bill

Bills record vendor invoices and serve as the foundation for payment processing and cash flow management.

Step 1: Access Bills

  1. Navigate to Purchase in the main menu
  2. Click on Bills from the submenu
  3. Click the "+ New" button

Step 2: Basic Information

Vendor (Required)

  • Select vendor from the dropdown
  • Start typing to search for existing vendors
  • Use "+" button to create new vendor

Vendor Currency (Read-only)

  • Automatically displays when vendor is selected
  • Shows the vendor’s default currency
  • All monetary fields will show this currency symbol

Currency Exchange Rate (Required for foreign vendors)

  • Enter exchange rate when vendor’s country differs from organization country
  • Used for accurate currency conversion calculations

Supply Place (Required for domestic vendors)

  • Select state from which supply originates
  • Only appears when vendor’s country matches organization country
  • Affects tax calculations (intra-state vs inter-state)

Supply Destination (Required)

  • Select state to which supply is delivered
  • Used for tax calculation
  • Defaults to organization’s state

Payment Terms (Optional)

  • Select or enter payment terms
  • Use “Manage Payment Terms” button to manage available terms
  • Examples: “Net 30”, “Due on Receipt”, “45 Days”
  • Auto-calculates due date when selected

Bill Number (Required)

  • Enter vendor’s bill/invoice number
  • Must be unique for tracking purposes
  • Used for vendor reconciliation

Date (Required)

  • Select the bill date from vendor invoice
  • Defaults to current date
  • Auto-calculates due date based on payment terms

Due Date (Optional)

  • Auto-calculated based on bill date and payment terms
  • Can be manually adjusted if needed
  • Used for payment scheduling and cash flow planning

Step 3: Billing Address

Country (Required)

  • Select billing country
  • Auto-populated from vendor data

Address Line 1 (Required)

  • Enter primary billing address (maximum 50 characters)
  • Street number and street name

Address Line 2 (Optional)

  • Enter secondary address line (maximum 50 characters)
  • Apartment, suite, or building details

Address Line 3 (Optional)

  • Enter tertiary address line (maximum 50 characters)
  • Additional address information

City (Required)

  • Enter billing city (maximum 50 characters)

State (Required)

  • Select billing state or province
  • Used for tax calculations

Zip Code (Optional)

  • Enter postal code (maximum 15 characters)

Phone Country Code (Optional)

  • Enter phone country code (maximum 5 characters)
  • Examples: “+1”, “+91”, “+44”

Phone Number (Optional)

  • Enter phone number (maximum 15 characters)
  • Contact for billing inquiries

Step 4: Order Reference

Order Number (Optional)

  • Reference to related purchase order
  • Use "🔍" button to search and select purchase order
  • Auto-populates bill details from selected purchase order
  • Helps with three-way matching (PO, receipt, bill)

Step 5: Bill Line Items

Adding Items:

  1. Click "+ Add Line" to add line items
  2. Fill in details for each item

Item Selection (Required per line)

  • Select item/service from dropdown
  • Purchase price auto-populates when item is selected
  • Tax rate auto-fills based on item configuration

Description (Optional per line)

  • Enter line item description
  • Additional details about the item or service

Quantity (Required per line)

  • Enter quantity (minimum 0.001)
  • Must be positive number
  • Uses item’s configured unit of measurement

Rate (Required per line)

  • Enter unit price/rate (2 decimal precision)
  • Must be positive number
  • Should match vendor’s invoice pricing

Discount Amount (Optional per line)

  • Enter line-level discount amount
  • Only available when discount level is set to “LINE_LEVEL”
  • Maximum value depends on discount type

Discount Type (Optional per line)

  • Select percentage (%) or fixed amount
  • Only available when discount level is “LINE_LEVEL”
  • Dropdown selection

Tax Rate (Optional per line)

  • Select applicable tax rate from dropdown
  • Auto-selected based on item’s default tax rate
  • Can be overridden as needed

Amount (Read-only per line)

  • Automatically calculated line total
  • Formula: (Quantity × Rate) - Discount + Tax
  • Updates automatically when other values change

Managing Rows:

  • Use “x” to remove line items
  • Button disabled if only one row remains
  • Add multiple rows for different items

Step 6: Bill Summary

Discount Level (Radio buttons)

  • Select “LINE_LEVEL” for item-specific discounts
  • Select “ORDER_LEVEL” for overall bill discount
  • Affects availability of discount fields

Apply Discount (Radio buttons)

  • Select when to apply order-level discount
  • Only available when discount level is “ORDER_LEVEL”
  • Options: “Before Tax” or “After Tax”

Discount Amount (Optional)

  • Enter order-level discount amount
  • Only when discount level is “ORDER_LEVEL”
  • Minimum: 0, Maximum: depends on discount type

Discount Type (Optional)

  • Select percentage (%) or fixed amount
  • Only when discount level is “ORDER_LEVEL”
  • Radio buttons with “%” and currency symbol

Tax Breakdown (Read-only)

  • Individual tax amounts per tax rate
  • Auto-calculated based on line items and rates
  • Shows detailed tax calculations

Total Tax (Read-only)

  • Sum of all taxes from line items
  • Auto-calculated and updates with changes

Adjustment Amount (Optional)

  • Enter final adjustment amount (2 decimal precision)
  • Can be positive or negative
  • Applied after all other calculations

Total (Read-only)

  • Final bill total
  • Formula: Subtotal + Tax - Discount + Adjustment
  • Updates automatically with all changes

Step 7: Additional Information

Notes (Optional)

  • Enter additional notes about the bill (maximum 1024 characters)
  • Internal notes for reference
  • Vendor-specific information or special instructions

Step 8: Save Bill

  1. Review all entered information
  2. Click “Save” to save as draft for later processing

Editing a Bill

Bills can be edited based on their current state and payment status.

Step 1: Find the Bill

  1. Go to Bills list
  2. Use search or filters to locate the bill
  3. Click on the bill row to view details

Step 2: Check Edit Eligibility

Editable States:

  • Draft: Full editing allowed
  • Submitted: Edit with approval
  • Approved: Edit with reason
  • Issued: Edit with reason

Non-Editable States:

  • Partially Paid: Cannot edit directly
  • Paid: Cannot edit directly

Step 3: Access Edit Mode

  1. Click the “Edit” button
  2. The editing form will open

Step 4: Edit Reason (For non-draft bills)

Edit Reason (Required for issued bills)

  • Enter reason for editing the bill
  • Required when bill state is not “DRAFT”
  • Maintains audit trail for bill modifications

Step 5: Make Changes

You can update most fields in editable states:

  • Modify quantities, rates, or discounts
  • Add or remove line items
  • Update billing information
  • Change due dates
  • Adjust notes

Step 6: Special Editing Requirements

For Partially Paid/Paid Bills:

  1. Cancel the bill first using the “Cancel” button
  2. Create a new bill with correct information
  3. Avoid cancelling partially paid or paid bills as this can cause:
    • Payment tracking issues
    • Financial reporting discrepancies
    • Audit trail complications
    • Vendor relationship problems

Step 7: Validation and Dependencies

The system enforces several validation rules:

  • Currency Exchange Rate: Numbers and dots only
  • Quantity: Minimum 0.001, number values
  • Rate: 2 decimal precision, positive numbers
  • Discount: Maximum based on type and bill value
  • Text Fields: Character limits as specified

Step 8: Save Changes

  1. Review modifications
  2. Click “Save” to save as draft

Deleting a Bill

Bills can be deleted under specific conditions to maintain data integrity.

Step 1: Find the Bill

  1. Go to Bills list
  2. Locate the bill you want to delete

Step 2: Check Deletion Eligibility

Can be deleted:

  • Draft bills: Usually allowed
  • Submitted bills: May require approval

Cannot be deleted:

  • Issued bills: May have restrictions
  • Partially paid bills: Has payment records
  • Paid bills: Complete transaction records

Step 3: Delete Process

  1. Click on the bill to view details
  2. Click the “Delete” button
  3. Confirm deletion when prompted

Important: Deletion restrictions apply when:

  • Bill has been issued to accounting
  • Bill has payment records
  • Bill is referenced in other transactions
  • Bill affects financial reporting
  • Bill is part of closed accounting periods

Bill States and Inventory Impact

Understanding bill states is crucial for inventory and financial management:

Draft to Issued States (No Inventory Impact)

  • Draft: Bill being prepared
  • Submitted: Bill awaiting approval
  • Approved: Bill approved, ready to post
  • Issued: Bill issued to accounting

Payment States (Financial Impact)

  • Partially Paid: Some payment made
  • Paid: Full payment completed

Cancelled State (Financial Impact Reversed)

  • Cancelled: Bill cancelled
  • Financial Effect:
    • Outstanding payable amounts reversed
    • Payment obligations removed
    • Financial adjustments made

Best Practices for Bills

Accuracy and Verification

  • Verify vendor information matches invoice
  • Cross-check quantities and pricing with purchase orders
  • Ensure all taxes are correctly calculated
  • Validate due dates for cash flow planning

Workflow Management

  • Use draft status for internal review
  • Post bills only after approval
  • Track bill status through payment
  • Maintain clear approval processes

Purchase Order Matching

  • Link bills to corresponding purchase orders
  • Verify three-way matching (PO, receipt, bill)
  • Reconcile any discrepancies before posting
  • Document exceptions with proper approvals

Financial Controls

  • Review discount applications
  • Validate tax calculations
  • Ensure proper payment terms
  • Monitor foreign exchange rates

Documentation

  • Include comprehensive notes
  • Reference purchase orders
  • Keep vendor invoice copies
  • Maintain audit trails for modifications

Integration with Other Modules

Bills integrate seamlessly with:

  • Vendors: Auto-populate vendor details and payment terms
  • Items: Use item information and tax configurations
  • Purchase Orders: Import line items and validate quantities
  • Payments: Generate payment transactions
  • Reports: Analyze spending patterns and vendor performance

Bill States and Lifecycle

Understanding bill states helps manage the payment process:

Draft to Issued States (No Financial Commitment)

  • Draft: Bill being prepared, not yet committed
  • Submitted: Bill awaiting approval
  • Approved: Bill approved, ready to post
  • Issued: Bill issued to accounting, creates payable obligation

Payment States (Financial Obligations Active)

  • Partially Paid: Some payment made, balance outstanding
  • Paid: Full payment completed, obligation settled

Cancelled State (Financial Obligations Reversed)

  • Cancelled: Bill cancelled, payables reversed

Bill Lifecycle and Workflows

Standard Bill Flow

  1. Draft → Submitted → Approved → Issued → Partially Paid/Paid

Payment Tracking Flow

  1. Issued → Partially Paid/Paid

Cancellation Flow

  • Issued → Cancelled (with appropriate restrictions)

Critical Considerations

  • Posting: Creates financial obligations and payable records
  • Partial Payment: Creates complex payment tracking
  • Cancellation: Should be avoided for paid bills
  • Audit Trail: All state changes are tracked

State Management Best Practices

  • Post bills only when verified and approved
  • Avoid cancelling paid or partially paid bills
  • Use draft status for internal review
  • Track payment status accurately
  • Maintain proper approval workflows

Each state transition maintains comprehensive audit trails and affects available actions, ensuring financial accuracy and vendor relationship management.

Purchase OrdersPayments