Key takeaways
- An invoice is the document a seller issues to a buyer requesting payment.
- A bill is the buyer's record of an amount owed to a supplier, entered into the payables ledger. In everyday UK English a bill can also mean the invoice itself.
- Accounting software splits the two: sellers create invoices and buyers enter bills.
- The paper trail should link them by number, so one supplier document produces one bill.
Free PDF and Excel: Invoice to bill entry checklist. Get it below
The difference
An invoice is the document a seller sends to request payment. A bill is the buyer's entry that records the amount owed to the seller.
One piece of paper, two views. The seller calls it an invoice and records a receivable. The buyer receives it, calls it a bill and records a payable. In ordinary speech the two words are often used for the same thing, which is why this question is asked so often.
A freelance designer sends invoice 41 for 1,800 to a client. The designer's software books it as money to come in. The client's accounts payable person enters it into the payables ledger as a bill from the designer, due in 30 days.
Both entries have the same amount and date. One is a sales invoice and the other a purchase bill.
Side by side
| Point | Invoice | Bill |
|---|---|---|
| Who creates it | Seller | Buyer, from the seller's invoice |
| Ledger | Accounts receivable | Accounts payable |
| Purpose | Request payment | Record and schedule payment |
| Approval | By the seller | By the buyer's approver |
| Number | Seller's invoice number | The buyer's bill number, plus the supplier's invoice number |
| Everyday use | The usual business word | Often the word for a utility or household bill |
Free PDF and Excel
Invoice to bill entry checklist
A checklist for turning a supplier invoice into a bill, with a log that links supplier invoice and bill numbers.
- Invoice and bill table
- Entry checklist
- Duplicate check list
- Excel bill log
What buyers should record
| Field | What goes in it | Why it matters |
|---|---|---|
| Supplier and supplier invoice number | As shown on the invoice. | Duplicate detection depends on it. |
| Bill date and due date | Invoice date and the date payment is due. | Drives payment runs. |
| Amounts and tax | Net, tax and gross. | Matches the invoice. |
| PO and receipt | The purchase order and goods receipt. | Allows matching before approval. |
| Account coding | Expense account and cost centre. | Posts the cost correctly. |
| Attachment | The original invoice file. | Audit evidence. |
For the buyer's side of receiving a supplier document see vendor invoice, and for the invoice approval process see the invoice approval and GRN guide. The seller's layout is on invoice example.
Mistakes
- Entering the same invoice as two bills.
- Losing the supplier's invoice number and using only an internal one.
- Paying from the bill and ignoring a later credit note.
- Treating a utility bill as an invoice with a purchase order.
- Letting bills sit unapproved.
- Supplier and invoice number are entered exactly.
- Dates and amounts match.
- PO and receipt are linked.
- Coding is complete.
- The original is attached.
- It is routed for approval.
Last checked: 19 October 2026. General accounting practice. Software terminology varies slightly by product.
Frequently asked questions
Is a bill the same as an invoice?
Not quite. An invoice is what the seller sends. A bill is the buyer's record of the amount owed. In everyday language the words are often used interchangeably.
What do accounting packages mean by bill?
A payable entered by the buyer, created from a supplier's invoice.
Who sends a bill?
In accounting software, no one sends a bill. The buyer enters one. The seller sends an invoice.
What is a utility bill?
An invoice-like document from a utility. It requests payment but is usually called a bill in everyday use.
Do I need both?
The seller needs the invoice. The buyer enters a bill. They refer to the same debt.