Bill definition
/What is a Bill in Accounting?
A bill is an invoice received from a supplier, on which the supplier states the amount owed by the recipient. This is the primary source document for trade payables. A unique invoice number on the bill is entered by the receiving entity in its accounts payable system, which uses the number in combination with the supplier name as the primary identifier for the liability. A sample bill appears in the following exhibit.
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FAQs
How does a bill differ from an invoice?
In practice, a bill and an invoice are often used interchangeably and result in the same accounting treatment. A bill typically emphasizes the obligation to pay, while an invoice emphasizes documentation of the transaction and payment terms. Both give rise to accounts payable when goods or services are received.