Recording a Local Vendor Bill

This guide covers how to record a local (PHP) vendor bill, including withholding tax and posting.

Navigate to Vendor Bills

Vendors > Bills

From this list you can:

• Click New to create a new bill
• Click any existing bill to open it
• Use the search/filter bar to find specific bills

Creating a New Bill

Click New and fill in the bill header fields:

Field	Description
Vendor	Select the vendor from the dropdown (must have TIN on file)
Bill Reference	The vendor's invoice/APV number
Bill Date	Date shown on the vendor's invoice
Accounting Date	Date for posting to the GL (usually same as bill date)
Payment Reference	Auto-generated reference for tracking
Payment Terms	e.g., 30 days, Immediate, etc.
Journal	Select "Vendor Bills" (default)

Adding Bill Lines

For each product or service purchased:

1. Click Add a line in the Invoice Lines tab
2. Select a Product (or leave blank for a free-form line)
3. Enter the Description (line narrative)
4. Set the Quantity and Price
5. Select the applicable Taxes:
   • VAT Input — for input VAT (12% for VAT-registered vendors)
   • Expanded Withholding Tax — e.g., EWT Sup 2%, EWT Contractor 2%, etc. (based on ATC)

Withholding Tax

The system automatically computes withholding tax based on the tax code you select. The withholding tax:

• Shows as a negative tax amount on the bill
• Reduces the amount you pay to the vendor
• Is tracked in the withholding tax payable account
• Will be reported on BIR Form 1601-EQ (MAP/QAP)

:::tip Choosing the Right ATC For services: commonly EWT Sup 2% (Top Withholding Agents) or the applicable professional fee rate. For goods: typically no withholding unless the supplier is a top withholding agent supplier. Consult the BIR Revenue Regulations for the correct ATC. :::

Approval Workflow

TBPC uses an internal approval workflow tracked on the bill:

• Prepared by — User who entered the bill
• Checked by — User who verified the bill details
• Approved by — User who authorized payment

These fields are visible at the bottom of the bill form and are printed on the Purchase Voucher.

Posting the Bill

Once the bill is complete and reviewed:

1. Click Confirm to post the bill
2. The bill status changes from Draft to Posted
3. Journal entries are automatically created:
   • Debit: Expense/Asset account (from line items)
   • Debit: VAT Input (if applicable)
   • Credit: Accounts Payable (vendor)
   • Credit: Withholding Tax Payable (if applicable)

After posting, the bill is ready for:

• Purchase Voucher printing (see next page)
• BIR 2307 generation (see BIR 2307 section)
• Payment processing (see Paying a Bill)

:::info Irrevocable Posting Once posted, the bill's journal entries cannot be deleted — only reversed. If you need to make a correction, create a debit note or reverse the bill and re-enter it. :::