Record supplier bills and expenses

Use	When
Supplier bill	You buy on credit from a supplier and want to track what you owe and when
Expense	You paid (rent, electricity, stationery) or will pay soon without detailed tracking

Supplier bill

1. Open Purchases → Supplier bills → New.
2. Choose the supplier and type the supplier's bill number as printed on their document (an internal number is assigned as well).
3. Add the lines: unit prices exclude VAT, and each line posts to the account you choose (expense or asset).
4. Save it, then approve it. Once approved it appears in accounts payable.
5. When you pay, record a disbursement under Money → Payments → Record payment and allocate it to the bill.

Expense

1. Open Purchases → Expenses → Add expense.
2. Choose the category (rent, utilities…) and the supplier if there is one.
3. Enter the amount. Turn on amount includes VAT when you copied the total from the receipt; the net and VAT are worked out for you.
4. Choose the bank or cash account it was paid from, or leave it empty if it is not paid yet.
5. Attach a photo of the receipt and save.

Input VAT

• Recoverable VAT is posted to the input VAT account and lowers the VAT due on the VAT return.
• Turn recoverable off for items whose VAT cannot be reclaimed (such as entertainment).
• Keep the supplier's original tax invoice: it supports your reclaim.

A non-resident supplier you pay for services may be subject to withholding tax.