How to receive and register vendor bills against a purchase order?

A purchase order can have one of the following three Billing Status. The billing status of a purchase order can be seen in the Purchase -> Purchase Orders listing screen and also in the Other Info tab of the purchase order form.

Nothing to Bill: A status of Nothing to Bill indicates that vendor bills for items received so far against the purchase order have already been created. This status could also mean that no items have been received against the purchase order yet.

Waiting Bills: A status of Waiting Bills indicates that one or more items in the purchase order have been received but the corresponding vendor bills have not been created yet.

Fully Billed: All items in the purchase order have been received and the corresponding vendor bill(s) have been created.

If any of the products in your purchase order have a Bill control policy of On Ordered Quantities the default billing status will be Waiting Bills. Please refer to this article to learn more about Bill control policies.

Vendor bills can only be registered against a purchase order with a billing status of Waiting Bills. To register the bill, simply click on the Create Bill button on the purchase order form. This action will generate a draft bill that your accountant can validate/post.