Xero Bills – How to Record a Payment on a Bill

by | Jul 5, 2018

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If you have made a payment to a bill, you can manually record it against the bill in Xero. Once the payment has been recorded, it can be reconciled against the relevant bank transaction when it comes through the bank feed. In this tutorial, we will manually record a payment made to a bill in Xero’s demo company and see where it appears in the bank account.

Purchases Section in Xero

To get started, go to Business → Purchases overview from the main menu:


Next, click on the Awaiting Payment section to see all the bills that have been created but not paid:


How to Record a Payment on a Bill in Xero

For this tutorial, let’s pay the first bill on the list in full. Click anywhere on the row of the Heritage Trust to open the invoice:


At the bottom of the bill template, you should see a section called Make a payment. Here, you can add details of either a full or part payment of the bill. For this tutorial, we will add details of the full payment of the bill as follows:

  • Amount Paid: type in 132.00.
  • Date Paid: choose today’s date.
  • Paid From: choose 090 – Business Bank Account.
  • Reference: type in the bill reference Sub.


Click on the Add Payment button when you are ready. If the payment was successful, you will see a message at the top of your screen confirming that the payment has been recorded against this bill:


Check the Payment in the Bank Account

Let’s take a look at where the bill payment appears in the bank account. From the main menu, go to Accounting → Bank Accounts and click on the link for the Business Bank Account:


Click on the Account Transactions tab if it is not already open:


Here you should see a transaction for the payment of $132.00 you recorded against the Heritage Trust bill:


Congratulations! You have successfully recorded a payment to a bill in Xero and it is now ready to be reconciled once the transaction comes through the bank feed.

Mark Cunningham

Mark Cunningham

Xero Specialist | Udemy Instructor | Small Business Owner

I have been a company accountant for more than 20 years. I am now dedicated to empowering small business owners through my highly-rated and popular Udemy courses on Xero, bookkeeping and accounting.

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