Understanding the Vendor Billing Workflow
In Odoo 17, the vendor bill workflow is fully integrated with purchase and inventory modules. Here's how it flows:
- Create and confirm a Purchase Order (PO)
- Receive the goods in Inventory
- Create or auto-generate a Vendor Bill
- Validate the bill and post it to Accounting
- Make a Vendor Payment via check, bank, or online
This ensures full traceability and accuracy from order to payment.
Recording Vendor Bills
To manually create a vendor bill:
Go to Accounting → Vendors → Bills → Create
Add your vendor, products, quantities, pricing, taxes, and reference number. If linked to a PO, Odoo can pre-fill all these details automatically.
Fields to note:
- 🧾 Invoice Date and Due Date
- 🔗 Reference (Vendor invoice number)
- 💱 Currency and Journal
- 📦 Associated purchase order lines (optional)
Linking Bills to Purchase Orders and Receipts
When a bill matches an existing PO, Odoo allows you to:
- 🔄 Auto-match items and quantities from the PO
- ⚠️ Flag mismatches in quantity or price
- 📋 Attach delivery receipts and match three-way (PO, Receipt, Invoice)
This PO-to-bill matching ensures that you only pay for what was ordered and received.
Validating and Approving Bills
Once all details are reviewed, click "Validate" to post the bill into your accounting system.
Based on configuration, you can also:
- Use Approval Workflows for bill approval by finance or department heads
- Set blocking conditions (e.g., missing receipt, over-budget)
- Automatically book taxes and expenses based on product and chart of accounts
Making and Tracking Vendor Payments
After validation, you can process payments directly:
- 💳 Record manual or batch payments
- 🏦 Integrate with bank accounts to send payments electronically
- 📥 Import bank statements for reconciliation
- 💰 Pay partial amounts or settle multiple bills at once
Payment status is automatically updated on the bill — "Paid", "Partially Paid", or "Open".
Reporting and Reconciliation
Odoo provides robust tools for financial visibility:
- 📊 Aged Payables Report
- 📅 Vendor Payment Due Calendar
- 📁 Invoice Register and Journals
- 🔍 Audit log of each bill (created, approved, paid)
All vendor-related entries are synced with the general ledger — so your books are always up to date.
Conclusion
Odoo 17 connects purchasing and accounting like never before. You can validate bills, track POs, approve expenses, and pay vendors — all in one smooth workflow.
Want to streamline vendor billing and automate accounts payable? Let us help you implement it right.
