Step 5 · Supplier bills and payments

In one sentence

A supplier issued a proper invoice (letterhead, UEN) → this route: create the supplier → record the bill → record the payment when you actually pay. Three separate steps, so you always know who you still owe.

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1. Why not one step like Step 4

Because a bill has two moments in time:

1. The day the invoice arrives — you owe the money (but haven't paid)
2. The day you actually transfer — the money leaves

Those can be 30 days apart. Recording them separately is what lets the system tell you "who do I have to pay this month".

If you pay on the spot, you still do both steps — just with the same date.

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2. Create the supplier first

Fig. 01-suppliers

Books → Purchases (AP) → Suppliers → New

Field	Notes
Name	The full company name on the invoice
UEN	From the invoice; leave blank if absent
Payment terms	Usually 30 days — check the contract

1

The full company name on the invoice

2

Payment terms, usually 30 days

Fig. 05-supplier-form

Create each supplier once; afterwards you just pick them.

Search before you create

There's a search box above the list. Check whether they already exist — duplicates make "how much do we owe them" wrong.

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3. Record the bill

1

Record a supplier invoice from here

Fig. 02-bills

Books → Purchases (AP) → Bills → New Bill

The entry dialog that opens looks like this:

1

Pick the supplier first

2

The issue date printed on the invoice

3

Due date = issue date + terms

4

Line account — renovation to 1440 (asset), rent to 5300 (expense)

5

Not GST-registered → always NG (0%)

Fig. 03-bill-form

Field	What to enter
Supplier	The one from section 2
Issue date	The date printed on the invoice
Due date	From the invoice, or issue date + terms
Supplier ref	The invoice number — you'll need it later
Lines	Each: description / qty / unit price / account / GST code

Choosing the account: exactly the same judgement as Step 4 — renovation to 1440 (asset), rent to 5300 (expense).

GST code: the Academy isn't GST-registered — pick NG.

One invoice can be split across lines

If a renovation invoice covers $28,000 of works plus $500 of delivery, split it into two lines on two accounts. Split when it makes sense — far easier than reclassifying later.

A new bill is a Draft. Once checked, press Approve & Post on that row. A confirmation appears:

Approve and Post Bill — This assigns the formal bill number and posts the accounting journal. Continue?

1

🔴 Must confirm here — dismissing leaves it a draft

Fig. 04-approve-confirm

⚠️ You must press "Approve & Post" inside the dialog. Clicking the row button and then dismissing the dialog leaves the bill as a draft.

On success the number changes from DRAFT to a real one (e.g. BIL-2026-0001) and the status becomes Awaiting Payment.

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4. Payment

1

Record a payment from here

Fig. 06-payments

Books → Purchases (AP) → Payments → New

1

Record a payment from here

Fig. 06-payments

Field	What to enter
Supplier	The one you're paying
Payment date	The day the money actually left
Method	transfer / payNow / cheque / giro
Bank account	DBS Current Account
Reference	The bank reference — you'll reconcile against it

Fig. 07-payment-form

| Allocation | Tick which bill this pays, and how much |

⚠️ Order matters: the bill allocation rows only appear after you pick the supplier — the system needs to know who, before it can list their open bills. So pick the supplier first.

Tick the bill row, enter the amount under Allocation, then press Confirm & Post.

Back on the Bills page, that bill will now show Paid.

Part payments are fine: a $28,000 bill paid $10,000 now becomes "partially paid" and the balance stays outstanding.

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5. Knowing who you still owe

Books → Purchases (AP) → Aging — every unpaid balance by supplier, bucketed by how overdue it is.

Look at this page once at every month end. It's the most basic discipline there is.

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6. Common mistakes

Mistake	Consequence	Avoid it by
Forgetting to Approve, leaving drafts	The bill isn't on the books at all	Approve as soon as you've checked it
Recording both the bill and the payment as expenses	Costs doubled	Payments must be allocated to a bill, never entered as a separate expense
Putting proper invoices through Step 4	Payables can't be tracked	Proper invoice → this route
Duplicate suppliers	Balances split across two names	Search before creating