Go to Purchases, then Bills, click New Bill. Select the vendor: their GSTIN, GST treatment, and billing address auto-fill. Enter the bill date, the due date based on payment terms, and add line items. For each line item, select the expense account (or asset account if purchasing a fixed asset), the HSN or SAC code, the quantity, rate, and GST rate. Zoho Books calculates CGST, SGST, or IGST based on the transaction type and posts the input tax credit to the appropriate ITC asset account.
Every bill from a GST-registered vendor in Zoho Books automatically records the input tax credit (ITC) available. This ITC is visible in the GSTR-2A reconciliation report, which compares your recorded bills against the government’s GSTR-2A data (sourced from vendors’ GSTR-1 filings). Discrepancies between your Zoho Books bill records and GSTR-2A must be resolved before claiming ITC in your GSTR-3B.
For businesses that require approval before paying a vendor bill, Zoho Books supports a two-step workflow: bills can be saved as Draft and submitted for approval. An approver reviews and either approves or rejects the bill. Only approved bills appear in the Accounts Payable Aging Report and are eligible for payment. This prevents unauthorised or duplicate payments and maintains a clear audit trail.
A bill in Zoho Books is the accounting record for a vendor invoice, recording the amount your business owes for goods received or services rendered. It credits Accounts Payable and debits the expense or asset account, capturing GST input tax credit automatically.
Go to Purchases, then Bills, click New Bill. Select the vendor, enter the bill date and due date, add line items with expense account, GST rate, and amount, and save. Zoho Books posts to Accounts Payable and records the input tax credit.
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