> For the complete documentation index, see [llms.txt](https://docs.xorosoft.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xorosoft.com/xoroerp-1/purchase/bill/what-is-a-bill.md). # What is a Bill? A bill is a notice of payment sent from vendors and also serves as a document of received goods. Bills can be generated from item receipts or entered manually. The bill contains essential information that prompts you to make the payment, including: * Details of the goods and/or services purchased * The cost of the goods and/or services * Payment terms * The balance due for payment Bills assume different statuses as they move through the payment process, signifying their position in the payment cycle. This enables you to monitor progress and make informed decisions.

### Bill Statuses * **Open:** This status indicates that the bill has no prepayments, payments, deposits, or credits applied to it. * **Partially Paid:** If the bill is partially paid and there is an outstanding balance yet to be paid, the bill's status becomes "Partially Paid." * **Paid**: This status indicates that the bill has been paid in full. #### Bill Header Fields

Section	Field	Description
Bill	Select Store	This is the store where the items are received or the store for which the bill is for.
Bill	Receipt Date	This is the date on which the item receipt was created.
Bill	Packing Slip#	Enter the packing slip # from the vendor here.
Bill	Select Account	This field displays the account payable for the order.
Bill	Bill Date	This field captures the date of bill creation.
Bill	Vendor Bill#	The vendor’s bill number can be entered here.
Bill	Payment Terms	This section displays the payment term of the vendor are captured here. This automatically gets fetched when a vendor is selected.
Bill	Discount Date	The field allows you to set the discount date for the bill. If a bill is paid before this date, then it is eligible for a discount. This date is automatically determined from the Payment Terms and Bill Date.
Bill	Total	This is the total amount of the bill.
Bill	Select Vendor	Select the vendor you are purchasing from. Click for more details on the selected vendor.
Bill	Due Date	The due date for this bill. This date is automatically determined from the Payment Terms and Bill Date.
Bill	Project/Class	Select a project or class to associate this bill with.
Other Info	Vendor Tax Code	This field allows you to select the tax code for the vendor. If there is a default tax code associated with the vendor, this field should already be fetched once a vendor is selected. Changing this allows you to apply a different tax code to all the items in the bill.
Other Info	Select Buyer	This field allows you to choose the Customer (if any) for whom the purchase order is being placed.
Inventory Log	Inventory Log	This section displays the details of all inventory changes triggered by the bill.
ASN Info	Store	This field shows the store where the items are received.
ASN Info	ASN Number	This field displays the ASN Number associated with this bill.
ASN Info	Status	This field displays the status of the ASN.
ASN Info	PO#	This field displays the purchase order associated with the bill.
ASN Info	Receipt Datetime	This field displays the date and time of item receipt creation.
ASN Info	Created At	This field displays the date and time of ASN creation.
ASN Info	Created By	This field displays the user who created the ASN.
Custom Fields	Custom Fields	This section allows you to enter data in the custom fields defined for the bill entity. This feature provides the flexibility to capture and store additional information relevant to the bill.
Footer	Memo	This field captures any notes or any additional information added to the purchase order.
Footer	Exchange Rate	If the receipt is for a foreign vendor, the exchange rate can be captured here.
Footer	Address	The address of the vendor is captured in this field. If the "Enable Vendor Address Update from Purchase Order, Item Receipt and Bill modules" app config is enabled, users will see a “Update Address in Vendor” toggle option when editing vendor address details. If users update the vendor address and enable this toggle, the changes will be automatically reflected in the associated vendor’s master record.

{% hint style="info" %} If the **“**[**Disable Auto Populate Memo in IR/Bill**](/xoroerp-1/configuration/application/app-config/purchase.md#disable-auto-populate-memo-in-ir-bill)**”** app configuration is enabled, the system will not automatically populate the Memo field in the **Bill** with the value from the Memo field of the **Purchase Order** from which the transaction was created. {% endhint %} #### Bill Details Fields

Section	Field	Description
Items	Alternative Item 1	This field displays an alternative item number 1 for the item, providing additional identification.
Items	Alternative Item 2	This field displays an alternative item number 2 for the item, providing additional identification.
Items	Alternative Item 3	This field displays an alternative item number 3 for the item, providing additional identification.
Items	Amount	Displays the calculated amount, which is the result of (Unit Price * Qty+Tax Amount-Disount).
Items	Description	This field displays the description of the item.
Items	Discount	This field allows you to apply a discount to the item.
Items	Dropship Invoice Number	For dropship items, this field captures the invoice number for the item.
Items	EUP	Indicates the Effective Unit Price for the item after discount.
Items	Expense Account	This fields allows you to select the account from which the money will be debited.
Items	Item#	The unique identifier for the item.
Items	Item Type	This field specifies the type of item, such as inventory, non-inventory, etc.
Items	Is Dropship?	This field shows whether an item is dropship or not.
Items	Landed Amount	This is the total cost for acquiring all total item quantity, including the cost of shipping/freight.
Items	Landed Unit Cost	This is the total cost for acquiring the a unit of item, including the cost of shipping/freight.
Items	Line CBM	Displays the total volume measurement in cubic meters for all the item units.
Items	Notes	This field displays any purchase order notes added to the order.
Items	PO#	The purchase order number is captured in this field.
Items	Project/Class	This field shows the project or class associated with the item line.
Items	Reconcile Currency	This field displays the currency for item reconciliation.
Items	Reconcile Methods	This field displays the method used for item reconciliation.
Items	Status	This field displays the status of the item receipt associated with this bill.
Items	Tax	This is the tax code of the item you are adding.
Items	Tax Amount	Displays the calculated tax amount for the item.
Items	Title	This field captures the title of the product.
Items	Unit CBM	Displays the measurement of volume in cubic meters for a single unit of the item.
Items	Unit Cost	This is an editable input field that allows you to edit the unit cost for the item.
Items	Uom	Specifies the unit of measure for the item (liter, unit, kilogram, etc.).
Expense	Account	Select an account for adding an expense line.
Expense	Tax	Select a tax code for adding an expense line.
Expense	Amount	Enter an amount here for adding an expense line.
Expense	Project/Class	Select a project or class to associate this expense line with.
Expense	Memo	This field allows you to add any additional information or notes, if required, for adding an expense line.
Tax Adjustments	Tax Adjustment Item	Select the tax type to adjust.
Tax Adjustments	Adjustment Amount	Enter the amount to adjust by, negative or positive.
Tax Adjustments	Memo	Enter a memo for the adjustment, if required.

### **How to Create a Bill** There are two primary ways to create a Bill in the system: 1. **Directly in the Bill Module:**\ You can manually create a **Bill** by navigating to the Bill module and entering the required [**Bill Header Fields**](#bill-header-fields) and [**Bill Details Fields**](#bill-details-fields). 2. **From a Purchase Order (PO):**\ You can create a Bill by converting a **Purchase Order** through the **Item Receipt** process. #### **Workflow: Converting a PO to a Bill** **Step 1:** Navigate to **Purchase Order Centre** and open the PO for which you want to create a Bill.

**Step 2:** Ensure the Purchase Order is in **Released** status before proceeding with ASN, Item Receipt, or Bill creation. If the PO is in **Open** status, go to **Options → Release PO**.

**Step 3:** Once the PO is in **Released** status, go to the **Options** menu and select **Create ASN**. The *Create ASN* page opens.

**Step 4:** Select the **Purchase Order lines** you want to move to the ASN and click **Create ASN**.

**Step 5:** A pop-up appears prompting you to enter the reference number for the PO. Enter the reference number and click **Save & Create ASN**.

**Step 6:** The **Receive ASN** page opens. Click on **Batch Receive ASN**.

In the **Batch Receive ASN** modal, select the **Receiving Location**, or enable the checkbox **Auto select default location by item** to use default item locations automatically. Then click **Confirm** to proceed.

**Step 7:** Once the ASN is received, the PO status updates to **"Received"**. Click on **Close ASN**.

A confirmation pop-up appears, where you can optionally enable the toggle **"Auto Convert Item Receipt (IR) to Bill"** to automatically create a Bill upon closing the ASN.

**Step 8:** Otherwise, click **OK**. A pop-up displays the generated **Item Receipt (IR)** number. Click the IR number to open the **Item Receipt** screen.

**Step 9:** Go to the **Options** menu in the top-right corner and select **Convert to Bill**.

**Step 10:** The **Item Receipt (IR)** screen opens with a message prompting you to save the record to proceed with bill creation. Click **Save**. The system then converts the Item Receipt into a Bill.

{% hint style="info" %} If the app configuration **“Direct Bill Creation on ASN Close”** is enabled, the system creates the Bill directly when the ASN is closed, bypassing the Item Receipt step entirely. {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.xorosoft.com/xoroerp-1/purchase/bill/what-is-a-bill.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.