Accounts Payables

ACCOUNTS PAYABLES (PURCHASES)

  • You can access purchases in Xero from Accounts> Purchases.
  • Xero gives you an easy to use function for creating a purchase order and sending it to the designated supplier.
  • You can convert a purchase order into an invoice whenever you require.
  • Xero also has capability of creating a credit note against the purchases in case you need to reduce your purchases.

Creating a Bill in Xero

  • You can create a new bill in Xero by Going to Accounts> Purchases> New > Bill.
  • For creating a bill you need to enter basic information from vendor invoice as described in the screenshot below:
New Bill

Tips :

  1. You can enter due date by just mentioning +2 in case you want due date to be 2 days after the date of invoice. In case you want due date to be same as date of invoice then you can just mention +0 in due date entry.
  2. You need not worry in case you are entering the same bill again as Xero will not accept the bill again with same reference number. Hence you can ensure that there is no duplicate entry of bill in Xero.
  3. It is optional to enter Item in entering the bill. You may choose not to maintain inventory record in the bill.
  4. You can set a user and approver role for the bill where the person doing data entry will only be allowed to enter the bill and the standard user can approve the bill and give an accounting effect.
  5. Once the bill is created and approved, it cannot be DELETED it can just be VOIDED.
  • Mentioning a note in the bill:
  • Information log of edits done.

Xero maintains a log of all the edits done in a particular entry

Making payment of Bill: :

  • You can make a payment of bill right in the bill create section.
  • The payment would be automatically appear into bank account in Xero once it is paid from here.
  • If there is an equal amount of payment in bank, Xero shall automatically match it with bank payment.
  • However it is advisable to match the Bill Payments from Bank reconciliation section of Xero in order to ensure that reconciliation is done correctly and problems in case of wrong entry can be avoided.

Adding a document to Xero Entry :

  • You can add a source document like scanned copy of supplier invoice or any other file in Xero along with Xero entry.
  • If you have a bulk of documents and are not sure where to place it in Xero, you can upload it to Xero library and assign it at a later stage to relevant entry.
  • There is a limit to document storage space in Xero which is explained here in pricing part:

Editing and making changes to Xero Bill :

  • You can make changes to Xero Bill on the go by various bill options available in bill entry itself.
  • You can Copy the same Bill again
  • Voiding the Bill would nullify the financial effect of same. As mentioned earlier once the Bill is approved, it cannot be DELETED, it can be just be VOIDED.
  • You can also enter a credit note for an Bill if the amount payable on the Bill needs to be reduced for some or the other reason.
  • You can set the bill as repetitive one. You need to enter various parameters for making the Bill as a repetitive one.
  • You can even print the PDF copy of the Bill in case you wish to send the bill to someone or you need it for your reference.

Accounting Services Firms provides bookkeeping service in below cities :

  • Sydney
  • Gold Coast
  • Logan City
  • Gosford
  • Perth
  • Melbourne
  • Newcastle
  • Sunshine Coast
  • Cairns
  • Wollongong
  • Brisbane
  • Canberra
  • Hobart
  • Geelong
  • Penrith

Get a Free Quote

Name (required)

Email (required)

Phone (required)

Subject

Your Message

captcha