Introduction
Recording supplier bills in Xero helps you track upcoming payments, manage cash flow, and avoid missing due dates. By entering supplier invoices into the Bills to Pay section, you can easily monitor what you owe, schedule payments, and keep your accounts payable up to date. This guide explains how to create and manage supplier bills in Xero.
How to create a Bill to Pay to record supplier bill?
Step 1: From the dashboard, go to Purchases, choose Bills.
Step 2: Click New bill to create a new bill entry.
Step 3: Fill in the bill details, including supplier, invoice number, bill date, and due date.
Enter the supplier name, description, quantity, price, and tax rate
Choose the correct expense account for each line
Adding multiple lines: Select Add another line if there are multiple items or expense categories.
Attaching documents: Click Attach file to upload a copy of the supplier invoice for reference or audit support.
Step 5: Review the bill totals calculated by Xero to ensure accuracy.
Step 6: To finalise the entry, choose one of the following:
Save — if you are not ready to approve yet
Approve — to add the bill to your accounts payable list
Step 7: After the bill is approved, it will move to Awaiting Payment, where you can schedule or record payment when the time comes.
Your bill will now appear under Awaiting Payment until you pay it.
Using Hubdoc to Capture Bills Automatically
Optional: You can use Hubdoc, which is fully integrated with Xero, to automate the process of entering supplier bills.
How it works:
You can upload, take a photo, or forward invoices via email to Hubdoc.
Hubdoc reads the document and extracts key details such as the supplier, amount, and invoice date.
With a single click, publish the bill to Xero with the invoice document automatically attached.
This optional workflow reduces manual entry, saves time, and keeps all supporting documents stored securely in one place.
Frequently Asked Questions (FAQs) about Xero Bill To Pay
Q: Can I save a bill as a draft and finish it later?
A: Yes. Click Save as draft if you’re not ready to approve the bill yet.
Q: What if the bill repeats every month?
A: You can set it up as a repeating bill, so Xero creates it automatically on a schedule.
Q: Can I split one bill across multiple expense accounts?
A: Yes. Add additional line items and select different account codes as needed.
Q: How do I pay a bill once it’s approved?
A: Go to Bills to pay, select the bill, and click Add payment when you are ready to process the payment.
Q: Can I enter a bill using a PDF invoice?
A: Yes. You can upload the invoice to Xero, and if email-to-bills is enabled, Xero can extract details automatically.
Conclusion
Recording supplier bills in Xero ensures you always have a clear picture of what payments are coming up and when they are due. By approving bills and keeping them updated in Xero, you can manage your expenses efficiently, stay organised, and maintain accurate financial records.
This simple process helps you stay on top of your payables and supports smarter cash flow management.