How to enter a supplier bill
A guide to creating and paying a bill from a supplier
Every cost you incur should be entered as a bill in Xero, even if you have not yet paid it. This keeps your expenses current and ensures input VAT is claimed in the correct period.
Creating a bill
In Xero, go to ‘Business’, then ‘Bills to Pay’, and select ‘New Bill’. Enter the supplier name, the invoice date (from the supplier's invoice, not the date you received it), the due date, and the line items with the correct account code and VAT code. Attach the supplier invoice PDF. Click ‘Approve’.
Paying a bill
When you pay the bill from your bank account, match the bank payment to the outstanding bill during reconciliation. If you have multiple bills from the same supplier and make a single payment, contact us and we will show you how to apply a bulk payment across multiple bills.
💡 Good to know: The date on the supplier's invoice, not the date you enter it in Xero, determines which VAT period it falls into under standard VAT accounting. Always use the invoice date from the document.
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