Creditors

Creditors is the control account for supplier bills, with the account type Payable, which means every posting must carry a supplier name and the balance can be read per supplier. A submitted Purchase Invoice credits it with the full bill including any VAT; a Payment Entry of type Pay debits it when the supplier is paid; a debit note or cancellation reverses it. BRAccount uses it as the default payable account on the Company, so new suppliers inherit it. Because it is party-wise, the Accounts Payable report can age each supplier's dues and show which bill is overdue. Posting a supplier bill to an expense without a Purchase Invoice bypasses this ledger and the Purchase Book the IRD expects.

Closing creditors = Opening + Purchase Invoices (incl. VAT, less TDS withheld) - Payments - Debit notes

1. 01Go to Buying > Purchase Invoice > New and pick the supplier; Creditors fills from the company default.
2. 02Enter the items or the expense account, the bill date and the supplier's invoice number.
3. 03Submit. The entry below posts and the bill shows under Accounts Payable.
4. 04To pay, open the invoice and click Create > Payment Entry; it debits Creditors and credits Bank.
5. 05Read the supplier's balance on Financial Reports > General Ledger with the Party filter set to the supplier.

Posted automatically when a Purchase Invoice is submitted, and cleared by Payment Entry. Always post with a supplier party.

Purchase Invoice ACC-PINV-2026-00005: Dr Office Equipment Rs 1,00,000, Cr Creditors Rs 1,00,000 owed to Market mind investment group for the Dell laptop.