Purpose
Record bills received from vendors so the business can track amounts owed and due dates.
Simple Example
A $75 bill from Books by Bessie is entered with vendor details, mailing address, terms, bill date, due date, category, description, and amount.
Simple Bookkeeping Decision Rule
Use a bill when the vendor has not been paid yet. Use an expense when the payment already happened.
Analysis
I reviewed a vendor bill for Books by Bessie with a balance due of $75.00. The bill shows payment terms of Net 15, bill date 05/21/2026, due date 06/05/2026, and category details assigned to Office Expenses. This confirms the vendor bill amount, due date, and expense category before saving or scheduling payment.
Result
The bill is ready for accounts payable tracking. Recording the bill helps the business monitor what it owes and avoid missing the due date.