Bills vs Payments

There are two types of expenses within Akaunting: Bills vs Payments. They are totally different entries and there is no link between.


Bill is a planned and itemized expense, Payment is an instant and simple expense.


Bill is a document received from your vendor that indicates the items (product or service) bought by you. It is generally not paid yet. You should use bills if you work with tax.


Payment is a non-billable and paid expense. For example, food that you eat while on business trips. There are no items within the payments. Tax is not applicable. Do not confuse this with payments added to a bill/invoice.

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