Add a Vendor and Record a Bill

Last updated: 2026-06-06 Summary:

• Vendor setup is a two-minute job, but the entity type and TIN you enter drive withholding behavior on every future payment.
• Bills are entered against the vendor, line by line from your catalog, then posted to the books.
• A posted bill is what shows up for payment scheduling — drafts don’t.

Add the vendor

1. Go to Accounts Payable → Vendors and click New Vendor.
2. Enter the vendor’s name and TIN.
3. Set the entity type — individual or corporation. This matters: withholding tax codes differ between the two, and eKapital uses it to suggest the right one when you pay. See Withholding tax & ATC codes.
4. If the vendor holds a BIR exemption certificate, record it on the vendor so payments can apply it.

Record a bill

1. Go to Accounts Payable → Bills and create a new bill.
2. Pick the vendor and set the bill and due dates.
3. Add lines from your product/service catalog — the line’s category also informs which withholding code is suggested at payment time.
4. Review the VAT treatment, then save and post. Posting writes the journal entry and makes the bill payable.

Where people get tripped up

• Wrong entity type. An individual professional recorded as a corporation gets the wrong withholding code suggested on every payment. Fix the vendor, not each payment.
• Bill left as draft. Drafts don’t appear when you go to pay the vendor. Post the bill first.
• One vendor, two kinds of purchases. Goods and services are withheld differently. Keep the bill lines honest about what you bought — the per-line detail is what makes the payment-time withholding right.

See also

• Pay a vendor and issue the 2307
• Tax handling