This article explains what a bill is in FreeAgent.
Bills are invoices that you receive from your suppliers, as opposed to those which you issue to your customers. They allow you to track the payments you make to your suppliers.
Bills cover anything you buy for your business that doesn’t need to be paid for straight away. For example, work completed by a subcontractor for which payment isn’t due until 30 days after you’ve received their invoice.
If you're unsure whether to record a particular business cost by adding a bill, an out-of-pocket expense or explaining a bank transaction, it’s a good idea to familiarise yourself with the difference between an expense, a bill and a bank payment in FreeAgent.
When you add a bill, you assign it to a contact and enter a ‘Bill Date’ and a ‘Due Date’. This allows you to keep track of who you owe and when they're expecting to be paid.
When you add a line item, you can specify the category and amount.
You can also add an attachment to a bill if you have a scanned or PDF version of the invoice from the supplier.