Converting a purchase order to a bill

After you receive goods against a purchase order, you need to create a bill so you can pay the supplier. In Usystems, you can convert a purchase order (and its received items) directly into a bill, preserving the costs and quantities. This links the bill to the original purchase order and simplifies your payables workflow.

Before you start

• You have a purchase order with at least one goods receipt recorded
• You have received the supplier's invoice (the bill from them) and verified the amounts
• You have bill creation permissions (check with your administrator if unsure)
• The quantities and prices on the supplier's invoice match (or closely match) your purchase order

Steps

1. Go to Purchase Orders and find the purchase order you have received goods for. Open in Usystems

2. Open the purchase order detail page.

3. Locate the Convert to Bill button or action (usually at the top or in the document's action menu).

4. Click Convert to Bill. A new bill form will open pre-populated with:

   • The supplier/vendor (from the purchase order)
   • Each received line item with its quantity and cost
   • The total amount due

5. Review and verify:

   • The vendor is correct
   • The quantities match what you actually received
   • The unit prices match the supplier's invoice

6. Adjust any amounts if the supplier's invoice differs from the purchase order (e.g., different freight or discount):

   • Edit line item prices if needed
   • Add or remove discount/tax line items as applicable

7. Confirm the bill date (usually today's date) and due date if needed.

8. Click Save Bill to create the bill. The bill is now ready to record the payment when you pay the supplier.

Accounting impact

• A Accounts Payable entry is created, increasing what you owe the supplier
• Inventory (from the goods receipt) is matched against the bill amount
• When you pay the bill, the payable is reduced and the payment account (cash, bank) is decreased
• If there is a price variance between what was ordered and what was billed, it posts to the appropriate variance account

Tips & common mistakes

• Only received goods appear in the bill. If you ordered 100 units but received only 50, the bill will show 50. The remaining 50 stay on the purchase order for future receipt.
• Do not convert the same PO twice. Each conversion creates a new bill; converting again will create a duplicate. If you need to split payment, create additional bills manually.
• Check for partial invoices. If the supplier sends multiple invoices for one purchase order, convert each invoice separately to a bill.
• Verify before saving. Once saved, editing a bill requires permissions; review carefully before clicking Save.