Vendor Bill Management — Accounts Payable Tracking

Vendor bills (also called purchase invoices or supplier invoices) are invoices you receive from vendors for goods or services your business has purchased. They represent an accounts payable (AP) liability — money your business owes. In iBill, entering a vendor bill automatically creates the GL journal entry: debit the expense account and credit Accounts Payable (GL 2000).

When you enter a vendor bill in iBill, the system automatically posts a double-entry journal entry: DR Expense (the appropriate expense account) / CR Accounts Payable (GL 2000). This follows accrual-basis accounting — the expense is recognized immediately when the bill is received, regardless of when you pay it. When you record a payment, iBill posts DR AP (GL 2000) / CR Bank (GL 1200) to clear the liability.

Under accrual-basis accounting (used by iBill for vendor bills), the expense and AP liability are recognized when the bill is received — not when payment is made. This gives you an accurate picture of what your business owes at any point in time. Cash-basis accounting, by contrast, would only record the expense when you actually pay. iBill uses accrual for AP to help you track obligations and manage cash flow effectively.

iBill tracks payments against each vendor bill individually. When you record a payment, the system posts a GL entry (DR Accounts Payable / CR Bank) and updates the bill status from “unpaid” to “paid”. You can see payment history for each vendor, view outstanding bills, and run AP aging reports to see which bills are current, 30 days, 60 days, or 90+ days overdue.

An AP aging report groups your unpaid vendor bills by how long they have been outstanding: Current (0-30 days), 31-60 days, 61-90 days, and 90+ days. This helps you prioritize payments, avoid late fees, maintain good vendor relationships, and manage cash flow. iBill generates AP aging reports automatically from your vendor bill data — no manual tracking required.