Accounting: Workflow: Vendor Bills


Purpose

The purpose of this document is to review the different ways of creating Vendor Bills and how to register payment to them. We will also be reviewing how to apply a single payment across several Vendor Bills.

Processes

To get started, navigate to the Accounting application.

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Vendor Bills Overview

From the Accounting Overview, you will see a kanban view of your journals. As we can see below, the Vendor Bills journal will display the number of Vendor Bills that need to be validated, the number of unpaid Vendor Bills, the number of Expenses to Process, as well as the total dollar amount of each group.

You also have the option to create a new Vendor Bill from scratch by selecting the new bill button. You can also import your existing Vendor Bills by clicking Import Bills

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Alternatively, you can access a complete list of your Vendor Bills by navigating to Vendors > Bills



Vendor Bill Status

From the main Vendor Bills page, you will see all of the Vendor Bills that have been created in your database. At a glance, you can see various pieces of information about each Vendor Bill, like the Bill Number, the Source Document (Purchase Order) it was created from, and the Status. 

Vendor Bill statuses determine how they appear on this page and how you're able to interact with them:

  • Draft: If a Vendor Bill is in a Draft status, it will appear in light blue. All fields on a draft Vendor Bill can be modified. This allows you to configure the Vendor Bill as needed, until it is ready to be validated. 

  • Open: Once a Vendor Bill is validated, it will appear in black and move to the Open status. Open Vendor Bills cannot be modified unless cancelled and reset to a Draft status. They are considered fully verified and correct. 

  • Paid: When the Vendor Bill is paid, it will move to the Paid status. 


                            Creating Vendor Bills from Purchase Orders

                            To get started, navigate to the Purchase application. 


                            Once there, navigate to Purchase > Purchase Orders.

                            There, click the  Filters button and from the drop-down menu, select Waiting Bills.

                            Now, select the Purchase Order you wish to generate a Vendor Bill for. 


                             On the Purchase Order, you can see the Purchase Order details. 

                            When you're ready, click create Bill


                            On the next page, you will see the draft bill populated with information from the Purchase Order. You should leave any pre-filled information, but can fill in the following fields if desired:

                            Vendor Reference: If your vendor has created a unique reference number for their invoice, enter it here.

                            Auto-Complete: You can use this drop-down menu to add product lines from other Purchase Orders to this Vendor Bill. When you do, the product lines will appear under the Bill tab and the added Purchase Orders will be listed in the Source Document field. 

                            Bill DateOnce the Draft Vendor Bill is validated, the Bill Date will automatically fill in with the date it was validated.

                            Due DateThe Due Date will be automatically computed using the Bill Date and the Payment Terms that were selected. If no payment terms were selected, this field will allow you to set any date you would like either in the future or in the past. 

                            Bank AccountEnter the vendor's Bank Account number where you will be sending payment to (if applicable).


                            Click the Other Info tab. Here, you can fill in the following fields if desired:

                            Accounting Date: The date the Vendor Bill is created.

                            Reference/Description: Enter a description of the transaction. 

                            IncotermPre-defined commercial terms used in international transactions. Not applicable for most Vendor Bills. If you have questions about Incoterms and how to use them for your business, please contact the Hibou team

                            Fiscal PositionIf a Fiscal Position is set on the Vendor's contact, it will populate here automatically. Optionally, you can apply the fiscal position that will map the appropriate taxes onto the Vendor Bill for this Vendor.

                            Should be paid: This is automatically set to Yes. However, by clicking the Force status box, you can use the drop-down menu to choose between the following: 

                            • Yes: Products have been received and the bill can be paid. 

                            • No: Products have not been received and the bill should not be paid. 

                            • Exception: There is a difference between received and billed quantities. 

                            Payment TermsIf the selected Vendor has payment terms set on their contact, they will automatically appear here. Optionally, you can set the payment terms you would like to apply to this Vendor Bill. 

                            When you have filled in the desired fields, click save. Once saved, click validate

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                            Good to Know!

                            You can create a single Vendor Bill from multiple Purchase Orders if needed. 

                            As you are creating a new Vendor Bill (either from an existing purchase order or from scratch) click the    in the Auto-Complete field. In the drop-down menu, you will see a list of Purchase Orders for this vendor. 

                            You are able to add as many Purchase Orders to the Vendor Bill as you wish. You will see the product lines appear in the BILL tab of the Vendor Bill. The Purchase Orders will also be listed in the Source Document field. 


                            The next step is to register payment on this Vendor Bill. To do so, read the Registering Payment on a Single Vendor Bill or Registering Payment on Multiple Vendor Bills Sections below. 

                            Creating Vendor Bills Manually

                            To get started, navigate to the Accounting application. 



                            Once there, go to VENDORS > BILLSFrom this screen, you will see all previously created Vendor Bills. To make a new Vendor Bill, click CREATE.


                            On the next page, you will be presented with a blank Vendor Bill that will need to be filled in. You will see the following fields:

                            Vendor: Select the vendor whose bill you wish to pay.

                            Vendor ReferenceIf your vendor has created a unique reference number for their invoice, enter it here.

                            Auto-Complete: From the drop-down menu, you can select existing Purchase Orders for the selected vendor. When you do, the product lines will appear under the bill tab and the purchase Order numbers will then populate the Source Document field. 

                            Bill Date: Once the Draft Vendor Bill is validated, the Bill Date will automatically fill in with the date it was validated. 

                            Due DateThe Due Date will be automatically computed using the Bill Date and the Payment Terms that were selected. If no payment terms were selected, this field will allow you to set any date you would like either in the future or in the past. 

                            Currency: Select the currently that you would like this Vendor Bill to be represented in. 

                            Bank Account: Enter the vendor's Bank Account number.


                            Once you have the vendor information filled in on the Vendor Bill, you can now add the product lines that you want to pay the vendor for. 

                            Click the Add a Line button under the Product column. 

                            You can either select a pre-configured product on the Bill line or you can bypass product selection and simply enter a description for the line that you are paying the vendor for. 

                            If you enter in a description, you will need to manually enter in the accounting information, quantity, price, cost, and other information for the line as needed. 

                            If you select a pre-configured product for the line, these fields will be filled in automatically, but you can always modify them as needed. 


                            Once you have all of your product lines added and your total is correct, we can configure the options on the other infotab:

                            Purchase Representative: The User responsible for this Vendor Bill.  

                            Journal: The Journal where the entries for this Vendor Bill will be recorded.

                            Account: The payable account set on the Vendor that this Vendor Bill is for. 

                            Accounting Date: The date this Vendor Bill was created. 

                            Reference/Description: If the Vendor Bill is not created directly from a sale order, this is where the description of the transaction should be placed.

                            Incoterm: Pre-defined commercial terms used in international transactions. Not applicable for most Vendor Bills. If you have questions about Incoterms and how to use them for your business, please contact the Hibou team

                            Fiscal Position: If a Fiscal Position is set on the Vendor record, it will populate here automatically. Optionally, you can apply the fiscal position that will map the appropriate taxes onto the Vendor Bill for this Vendor. 

                            Should be paid: This is automatically set to Yes. However, by clicking the Force status box, you can use the drop-down menu to choose between the following: 

                            • Yes: Products have been received and the bill can be paid. 

                            • No: Products have not been received and the bill should not be paid. 

                            • Exception: There is a difference between received and billed quantities. 

                            Payment Terms: If the selected Vendor has payment terms set on their contact, they will automatically appear here. Optionally, you can set the payment terms you would like to apply to this Vendor Bill. 


                            Once you've filled in the Vendor Bill with the necessary details, click validate.

                            Registering Payment on a Single Vendor Bill

                            Now that your Vendor Bill is created, you can apply a payment to it. Navigate to the Vendor Bill and click REGISTER PAYMENT. You will see a payment modal appear where you can define the parameters of the payment: 

                            • Payment Amount: This will automatically apply the full amount due on the Vendor Bill. You can modify this field to change the amount if needed. 

                            • Payment Journal: Select the journal that you would like the entry for this payment to be posted in. 

                            • Payment Method Type: Select how this payment is being made.

                              • Manual: Choose this payment method if you are paying using a method outside of Odoo (Cash, Wire Transfer, Credit Card Payment, etc). 

                              • Checks: Select this payment method if you want to print out a check from Odoo. See the Important! callout below for more information on how to complete the check workflow. 

                            • Payment Date: The date of payment will always default to today's date. You can modify this to a date in the past or future as needed. 

                            • Memo: This will automatically display the associated Vendor Bill number that you are paying. You can modify this field as needed. 



                            Once your payment parameters have been set, click validate

                            Important!

                            Paying a Single Vendor Bill with a Check

                            If you are printing a check to pay your vendor bill, follow the below steps: 

                            On the Register Payment modal, select Checks as the Payment Method Type.

                            When this is done, you will see the Amount in Words field appear on the modal and display the amount of the check written in words. You can edit this field's contents as needed.


                            Verify that all other information on the payment modal window is correct and when ready, hit VALIDATE

                            Now, navigate to the Overview page in the Accounting app. There, locate the Payment Journal you used to register the payment.

                            On the Journal's Kanban card, you will see the # Checks to print button. Click this button. 


                            On the next page, you will see a list of Checks to Print. You can select one check or multiple checks to print at once. 

                            To print a single check, click on the check you would like to print, then on the next page, click Print Check.


                            To print multiple checks, make sure they are all from the same Payment Journal, click the checkboxes to the left of the checks you would like to print, and click Action  > Print Checks


                            A modal window will open where you will see the auto-populated number of the next check in the sequence you will be printing. Confirm that this is correct by verifying the lowest check number in the sequence you will be printing on your check stock.

                            You can manually change this number if needed. 


                            Once you have verified the check number, click print.

                            This will download a PDF containing the selected checks. You are able to alter the layout of the check on the page under Configuration > Settings > Supplier Payments in the Accounting application.

                            Your payment will now be recorded on the Vendor Bill. You can see additional information about the payment by selecting the  icon on the Vendor Bill. 


                            If we select view from the additional information window on the payment, we will be routed to the payment details page. 

                            From this screen, we can select the  Journal Items Smart Button and review the journal entry that was created for this payment. 



                            Good to Know!

                            Because we applied the payment directly on the Vendor Bill, the two records (payment and Vendor Bill) are automatically reconciled in the database. 

                            However, if you applied a payment to the wrong Vendor Bill, you can always hit UNRECONCILE and that will separate the payment from the Vendor Bill it was applied to. 

                            You can then use that same payment on any other open Vendor Bills for that vendor.

                            From the Vendor Bill you would like to apply the debit on, select ADD next to the outstanding debit and it will be applied to the Vendor Bill. 


                            Registering Payment on Multiple Vendor Bills

                            If you would like to apply payments on multiple Vendor Bills simultaneously, you can do so easily within Odoo. 

                            Navigate to vendors > billS. From this screen we are going to use our   Group By options and Group By > Partner and then we will use our  Filters to Filter > Open

                            Now, we can see all Open Vendor Bills grouped by Vendor. 

                            We will select the Vendor whose bills we wish to pay and then choose the Vendor Bills we want to include on this payment.

                            If you want to include all Vendor Bills for the Vendor that you have open, select the checkbox at the top of the column next to Vendor.

                            From the Action  dropdown, select Register Payment

                            You will see a payment modal appear that will allow you to set the parameters of your payment.

                            • Payment Amount: The payment amount will automatically be for the total amount of all combined Vendor Bills selected. You can manually adjust this as needed.

                            • Payment Journal: Select the journal that you would like the entry for this payment to be posted in. 

                            • Payment Method Type: Select how this payment is being made.

                              • Manual: Choose this payment method if you are paying through a system outside of Odoo (Cash, Wire Transfer, Credit Card Payment, etc.).

                              • Check: Select this payment method if you want to print out a check from Odoo. See the Important! callout below for more information on how to complete the check workflow. 

                            • Group Invoices: If this is checked, then each Vendor Bill's reference number will be listed in the memo for the payment. However, you can still alter this box manually, if desired. If this box is unchecked, then the memo field on the payment will be blank. 


                            Once your payment parameters have been set, click validate.

                            Important!

                            Paying Multiple Vendor Bills with a Check

                            If you are printing a check to pay multiple Vendor Bills, follow the below steps:

                            On the Register Payment modal, select Checks as the Payment Method Type

                            When this is done, you will see the Amount in Words field appear on the modal and display the amount of the check written in words. You can edit this field's contents as needed.


                            Verify that all other information on the payment modal window is correct and when ready, hit VALIDATE

                            You will be taken to the payment that was made for all selected Vendor Bills. From this page, click Print Check


                            A modal window will open where you will see the auto-populated number of the next check in the sequence you will be printing. Confirm that this is correct by verifying the lowest check number in the sequence you will be printing on your check stock. 

                            You can manually change this number if needed. 


                            Once you have verified the check number, click PRINT.

                            This will download a PDF containing the selected checks. You are able to alter the layout of the check on the page under Configuration > Settings > Supplier Payments in the Accounting application.

                            If you selected to have your Vendor Bills grouped, you will be taken to the single payment that was made for all Vendor Bills. In the Memo field, you will see a list of all the Vendor Bill reference numbers contained in this payment. 


                            If you did not select for your Vendor Bills to be grouped, you will be taken to the single payment that was made for all Vendor Bills, but will not see the Memo field containing the list of Vendor Bill reference numbers.