> For the complete documentation index, see [llms.txt](https://now-8.gitbook.io/now.-features/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://now-8.gitbook.io/now.-features/purchases/bills.md).

# Bills

Bills track what your business owes to vendors. When you create a bill in now., the expense is recorded immediately in your books. When you pay the bill, the payment is matched to clear the outstanding balance.

#### How to Find It

Tap the **People** icon in the bottom tab bar, then choose **Bills**.

#### Bill Statuses

Every bill has one of three statuses:

| Status             | Meaning                                           |
| ------------------ | ------------------------------------------------- |
| **Unpaid**         | No payments have been made                        |
| **Partially Paid** | Some payment has been made, but a balance remains |
| **Paid**           | The full amount has been paid                     |

#### Viewing Your Bills

The Bills screen has two filters:

* **Unpaid** — Shows all unpaid and partially paid bills.
* **Paid** — Shows only fully paid bills.

Each row displays the vendor name, status or due date, and the amount.

#### Creating a Bill

Tap **+** to create a new bill.

**Required Fields**

| Field          | Description                                    |
| -------------- | ---------------------------------------------- |
| **Vendor**     | Select an existing vendor or create a new one. |
| **Email**      | Vendor's email address.                        |
| **Address**    | Vendor's address (line 1 has autocomplete).    |
| **Line items** | At least one line item is required.            |

**Bill Details**

| Field           | Description                                                                                    |
| --------------- | ---------------------------------------------------------------------------------------------- |
| **Bill number** | Auto-generated (BILL-001, BILL-002…). You can edit the suffix; the full number must be unique. |
| **Term**        | Due upon receipt, Net 15, Net 30, Net 45, or Custom.                                           |
| **Bill date**   | Defaults to today.                                                                             |
| **Due date**    | Auto-calculated based on the term. Editing it manually adjusts the term.                       |
| **Tax rate**    | An optional purchase-tax percentage applied to the bill total. See Sales Tax.                  |
| **Notes**       | Optional notes for your reference.                                                             |

#### Line Items

Bills support two types of lines:

**Category Line**

Use this for any expense that's not a tracked product.

* **Expense Account** — Where the cost is recorded (from your Chart of Accounts). You can create a new expense account from the picker.
* **Description** — What the charge is for.
* **Quantity** — How many units.
* **Rate** — Cost per unit.
* **Amount** — Calculated automatically (quantity × rate).

**Item Line**

Use this when you're buying a specific product from your **Products/Services** list.

* **Item** — Pick a product from the picker.
* **Description, Quantity, Rate** — Default to the product's saved values; editable per bill.

If the product has **Track Inventory** enabled, the line cost is added to your **Inventory Asset** account and quantity on hand goes up. The weighted-average cost per unit updates automatically.

If the product is not tracked, the cost goes to the income or expense account configured on the product.

You can mix Category and Item lines on the same bill.

#### Saving a Bill

When you tap **Save**, now.:

1. Saves the bill.
2. Creates a journal entry: debit your expense (or Inventory Asset) accounts, credit Accounts Payable.
3. Updates inventory pools for any tracked Item lines.
4. Records purchase tax to **Sales Tax Paid (5099)** if a tax rate was entered.

**Closed Period Warning**

If the bill date falls within a closed period, you'll see a warning. You can choose to proceed or cancel.

#### Making a Payment

Bills are paid by matching a bank transaction to the bill. You cannot manually mark a bill as paid — it must be tied to a real bank transaction.

1. Go to **Transactions**.
2. Find the outgoing payment to the vendor (it's in **Needs Review**).
3. Tap the transaction and select **Match**.
4. Select the bill this payment applies to.
5. The payment is recorded and the bill status updates automatically.

**Partial Payments**

Bills support multiple partial payments. Each payment reduces the remaining balance. The bill stays in **Partially Paid** until the full amount is covered.

**Removing a Payment**

Unmatch the transaction from its detail to reverse the connection. The bill's previous balance and status are restored.

#### Bill Detail

Tap a bill to see its full detail:

* Status, number, term, dates
* Vendor information
* Line items with accounts (or items), descriptions, quantities, rates, and amounts
* Subtotal, tax, and total
* Amount paid and remaining balance
* Linked transactions (payments matched to this bill)

#### Deleting a Bill

A bill can only be deleted if **all** of these are true:

* Status is **Unpaid**
* No payments have been recorded
* No transactions are matched to it

**Inventory consumption guard.** If the bill has inventory Item lines and any of those units have already been sold on an invoice dated on or after the bill date, the delete is blocked. Delete the dependent invoice first; that returns the units to inventory and lets you delete the bill.

When you delete a bill, its journal entry is removed and any inventory it brought in is reversed.

#### Important

* **The expense is recorded when the bill is created**, not when the payment is made. This is standard accrual accounting.
* Payment only moves money from Accounts Payable to your bank — it does not create additional expenses.
* Duplicate bill numbers are not allowed.

#### Bills vs. Direct Expenses

Not every expense needs a bill. Bills are best for:

* Charges you receive from vendors before paying (Net 15, Net 30, etc.)
* Tracking what you owe to specific vendors over time
* Receiving inventory you'll sell later

For one-time purchases that already show up in your bank transactions (a credit card charge, for example), categorize the transaction directly — no bill needed.

#### Related

* Vendors
* Inventory and COGS
* Sales Tax
* Transactions


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