Creating a new bill for a purchase is easy to do in Xero. In this tutorial, we will create a new bill in Xero’s demo company and look at the options for saving it as a draft or approving it for payment.
Purchases Section in Xero
To get started, go to Business → Purchases overview from the main menu:
How to Create a New Bill in Xero
From the Purchases screen, click on the + New button and select Bill from the list:
You should now see a New Bill template that you can use to create your bill. Let’s create an new bill by filling in some of the main fields:
- From: choose any contact you like. I have chosen Alan Williams.
- Due Date: choose a date about 30 days from the Date.
- Description: type in Accounting services.
- Qty: type in 1.
- Unit Price: type in 1000.00.
- Account: choose 412 – Consulting & Accounting from the general ledger codes list.
- Tax Rate: this should automatically populate based on the chosen general ledger code.
How to Save or Approve a Bill
Now that you have created your bill, you will be able to Save or Approve it. What you choose to do depends on how you run your business.
If your billing process requires you to save new bills as drafts for someone else to approve, click on Save → Save as Draft on the bottom left-hand side of the New Bills screen:
If you do not need anyone else to approve your new bills, you can go ahead approve them yourself by clicking on the Approve button at the bottom right-hand side of the New Bills screen:
That’s all you need to do to create a new bill in Xero. The bill will now be ready for payment and can be reconciled in the bank account once the transaction comes through on your bank feed.