Bills & suppliers
The other side of the ledger: what you owe, to whom, and when it is due.
Suppliers
A supplier record holds who you buy from — name, contact, payment details, and terms. It gives you a purchase history, an outstanding balance, and the basis for purchase orders.
Add one for anyone you buy from repeatedly. One-off purchases can just be transactions with a counterparty name.
Recording a bill
A bill is an obligation: a supplier invoice you have received but not necessarily paid. Record it when it arrives, not when you pay it.
Each bill has a supplier, amount, date, due date, and a bill reference — the supplier's own invoice number, which is what they will quote when they chase you.
Record on arrival, not on payment
A bill entered only when paid means your books never show what you owe. Your forecast then thinks you have more money than you do, which is precisely the mistake that causes a shortfall.
Paying
Mark a bill paid against the money location that actually paid it. Part-payments are recorded as they happen, so the remaining balance stays correct.
What you owe, at a glance
Aging groups payables by how overdue they are — the same view as customer debt, pointed the other way. Use it to plan payment runs and to spot suppliers you are quietly falling behind with.
Unresolved supplier obligations are one of the things that block a month-end close.
Bills vs expenses
| Situation | Record as |
|---|---|
| Paid immediately, no credit | A plain transaction |
| Received now, pay later | A bill |
| Ordered, not yet received | A purchase order |
| Paid ahead for future months | A prepayment |
| Regular fixed payment | A recurring rule |
Getting the timing right
Paying suppliers too early costs you cash you could be using; paying too late costs you the relationship and sometimes your supply. The point of recording bills properly is being able to make that trade deliberately, with the due dates in front of you.