Vendor Bills
Create vendor bills from purchase orders and match bills with orders
Vendor Bill is a document recording payment obligations to vendors. Odoo supports automatic bill creation from purchase orders and bill matching with orders using Bill Matching feature.
Bill matching feature helps ensure bills match purchase orders in quantity, price and conditions, minimizing errors and duplicate payments.
Create Bill from Purchase Order
The simplest way to create a bill is from a confirmed purchase order:
Steps
1. Open purchase order in Purchase Order status
2. Click Create Bills button
3. System creates bill with lines from purchase order
4. Review bill information
5. Enter Bill Reference (vendor bill number)
6. Enter Bill Date
7. Confirm bill
Create Bill Manually
If receiving bill before having purchase order:
Steps
1. Go to Accounting → Vendors → Bills
2. Click New to create new bill
3. Select Vendor
4. Enter Bill Reference and Bill Date
5. Add bill lines manually or use Auto-complete
6. Save and confirm bill
Vendor Bill Information
Important Fields
| Field | Required | Description |
|---|---|---|
| Vendor | Yes | Vendor issuing bill |
| Bill Reference | Yes | Vendor bill number |
| Bill Date | Yes | Date on bill |
| Accounting Date | No | Accounting date (default = Bill Date) |
| Due Date | No | Payment due date |
| Payment Terms | No | Payment terms |
| Currency | Yes | Bill currency |
Auto-complete from Purchase Order
Auto-complete feature helps automatically fill data from purchase order:
Steps
1. Create new bill or open draft bill
2. Select Vendor
3. Click on Auto-complete field
4. Select Purchase Order to get data from
5. System automatically adds lines from PO to bill
6. Review and adjust if needed
Invoice Control Policy
Billable quantity depends on product Control Policy:
Control Policy
| Policy | Bill Based On | Apply To |
|---|---|---|
| On ordered quantities | Ordered quantity | Services, pre-ordered goods |
| On received quantities | Received quantity | Physical goods |
Match Bill with Purchase Order
Bill Matching feature helps link bill lines with purchase order lines:
Steps
1. Open vendor bill
2. Click Purchase Matching or Bill Matching button
3. Bill matching screen shows two sections:
4. - Purchase order lines not fully billed
5. - Bill lines not linked to PO
6. Select matching lines
7. Click Match to link
Benefits of Bill Matching
Key points
• Reduce discrepancies between purchasing and accounting
• Easy to verify bill quantity/price with PO
• Prevent incorrect or duplicate payments
• Better support for OCR/EDI bill processing
• Accurately track payables by order
Add Bill Line to PO
If receiving bill before having corresponding PO:
Steps
1. From Bill Matching screen, select bill line
2. Click Add to PO
3. Choose to add to existing PO or create new PO
4. System creates/updates PO with line from bill
5. Bill line is linked to PO
3-way Matching
If 3-way matching is enabled in Settings, system requires:
Key points
• Purchase Order
• Receipt
• Vendor Bill
• Goods must be received before paying bill
• Ensures payment matches received goods
Bill Status
Bill Status
| Status | Meaning |
|---|---|
| Draft | Bill being drafted |
| Posted | Bill confirmed, journal entry created |
| Paid | Bill paid |
| Cancelled | Bill cancelled |
Pay Bill
After confirming bill, proceed with payment:
Steps
1. Open confirmed bill (Posted)
2. Click Register Payment
3. Select Payment Date
4. Select Payment Method
5. Select Journal
6. Enter Amount
7. Click Create Payment
8. Bill moves to Paid status
Partial Payment
Can pay bill in multiple installments:
Steps
1. Click Register Payment
2. Enter Amount less than bill total
3. Create payment
4. Bill remains in Posted status with remaining balance
5. Repeat to continue payment
Vendor Refund
Create Credit Note when returning goods:
Steps
1. Open original bill
2. Click Add Credit Note
3. Select reason: Refund or Cancel
4. Select Refund Date
5. Select lines to refund
6. Create Credit Note
7. Credit Note automatically offsets original bill
Handle Price Differences
When bill price differs from purchase order:
Steps
1. Check reason for difference with vendor
2. If correct: Update price on bill
3. If incorrect: Request vendor to reissue bill
4. Note reason for difference in Chatter
5. Update purchase price on product if needed
Handle Quantity Differences
When bill quantity differs from purchase order:
Steps
1. Check actual received quantity from warehouse
2. Compare with quantity on bill
3. If matches actual receipt: Accept bill
4. If does not match: Contact vendor for clarification
5. Use Bill Matching to verify details
Cost Allocation
Allocate purchase costs by project/department:
Steps
1. On bill line, click Analytic Distribution
2. Select Analytic Account (project/department)
3. Enter allocation percentage (if splitting across projects)
4. Cost will be recorded in analytic accounting
Best Practices
Steps
1. Always create PO before receiving bill for easier matching
2. Use Auto-complete to reduce manual entry and errors
3. Use Bill Matching when bill arrives at different time than PO
4. Carefully check Bill Reference to avoid duplicates
5. For physical goods, use On received quantities for strict control
6. Note reason for price/quantity differences in Chatter
7. Enable 3-way matching for high-value goods
8. Allocate costs to correct project/department when creating bill