Vendors, bills, and bill payments
Add vendors, enter bills with due dates, pay them, and apply vendor credits.
- Plans
- Core and above
- Availability
- Available
- For
- Owners, Bookkeepers
- In KontoCore
Purchases → Vendors · Bills
What this does
A bill records an expense (or asset) and increases accounts payable. Paying the bill reduces payables and cash.
How to
Enter and pay a bill
- 1Purchases → Bills → New bill.
- 2Choose the vendor, bill date, due date, and reference number.
- 3Add lines by account or item; attach the vendor’s invoice.
- 4Save. Later choose Pay bills, select the bills, and the payment account.
- 5Match the payment when it appears in banking.
Apply a vendor credit
- 1Purchases → Vendor credits → New.
- 2Enter the credit amount and account.
- 3Apply it when paying that vendor’s bills.
What happens in your books
Entering a $500 bill for contract services, then paying it:
| Account | Debit | Credit |
|---|---|---|
| Contract Services (expense) | 500.00 | |
| Accounts Payable (liability) | 500.00 | |
| Accounts Payable (liability) | 500.00 | |
| Checking (asset) | 500.00 |
Common mistakes
- Entering a bill and also categorizing the bank payment as an expense — this double-counts.
Related articles
Expenses and payables overviewVendors, expenses versus bills, bill payments, purchase orders, vendor credits, receipts, and recurring expenses.Expenses and purchase ordersRecord immediate expenses with receipts and use purchase orders to commit spending before a bill arrives.Contractors, W-9s, and 1099 readinessMark vendors as contractors, collect W-9 details, and track reportable payments.
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Last reviewed September 25, 2026