When you purchase something from a vendor on credit, you most likely receive a bill from the vendor, either at the time of purchase or after the purchase through the mail. In both cases, you want to keep track of what you owe to others and what you are spending your money on.
Here is how it works in WorkingPoint:
When you make a purchase on vendor credit or when you receive a bill from a vendor, you enter the bill in WorkingPoint. By entering a bill, you are recording who you purchased goods/services from, when you made received the goods/services, when the bill is due, the amount due, and what you purchased.
With WorkingPoint, you can track when bills are due so you can be sure to pay them on time. WorkingPoint also tracks bills that are overdue. About Due Dates
About Due Dates and Terms - When vendors extend credit, they extend the credit for a set number of days specified by their terms. For example, Vendor X might offer you Net 30 days terms which means they expect the net total of the bill to be pay in 30 days. Terms can also get more complicated like 1% 10 Net 30 Days: this means that you can take a 1% discount off the bill if you pay in 10 days, otherwise the full total is due in 30 days.
Calculating your due date - If your vendor does not give you a due date - only the bill date and terms - you can calculate the due date by adding the number of days in your terms to the bill date.
When the bill is due, you can send in your payment to your vendor via check, online banking or another preferred way.
And lastly, you can record the payment in WorkingPoint, either a partial payment or a full payment.
How do I make a payment on a bill?
How can I find bills that are overdue?