Bills

The purpose of this training document is to introduce users to the billing process in Xero. It is designed for individuals who are new to Xero and want to understand how to effectively manage purchase bills within the system.

By the end of this section, the learner will be able to:

• Create a new bill for a purchase and attach the necessary supporting documents.

• Email bills directly into Xero and manage them efficiently from the Bills to Pay dashboard.

• Upload bills using the new AI-powered method, which automatically extracts and fills in bill details from uploaded files to save time and reduce manual entry. This document will guide users step by step, ensuring a practical understanding of the core billing features in Xero, with a focus on real-world usage, automation tools, and accuracy.

Create a Bill for Purchases

From the Bills to pay screen, click New Bill →

You can also use the ➕ (plus icon) to create a bill from anywhere in Xero.

Enter a Contact Name, Date, and Due Date →

Add a Reference to help you search for the bill in Xero.

💡 Tip: You can set default information for suppliers, such as tax settings, account codes, and tax rates, in the Contacts section.

The bill will default to your organization’s base currency →

If you’re using multi-currency, you can switch to another currency you've set up or add a new one directly from the bill.

Xero pulls in real-time exchange rates from xe.com automatically.

If you have inventory items set up in Xero, select one from the list →

You can also add a new item or manually enter the details.

📦 Drag and drop line items to reorder them if needed.

Click the file icon to attach documents →

You can add files from your Files Inbox or upload directly from your computer.

Click Save when done, especially if you don’t have permission to approve the bill, Click approve if you are an advisor.

Email Bills Directly into Xero 

In Xero, you can streamline bill management by emailing bills directly into your organisation. Simply go to Purchases > Bills to pay > Draft, where you’ll find your unique Xero email address. Forward supplier bills as PDF attachments to this address, and Xero will automatically create draft bills for you. From the Draft tab, you can review the PDF alongside Xero’s captured data, complete any missing details, and then save or approve the bill—keeping everything organized and easy to manage from the Bills to Pay dashboard.

Upload Bills with AI

Use the new AI-powered upload feature to automatically extract and fill bill details, saving time and reducing manual entry.

Navigation:
Business > Bills to pay > New Bill ▼ > Upload Bill