written by Khatabook | February 5, 2022

What is Bills Receivable Report in Tally?

In the modern world, technology has invaded every field including finance. For instance, in accounting, financial statements and maintaining proper accounts are very important. Tally ERP 9 is a software package used by various business organisations to record the day-to-day transactions, the bills receivable journal entry, and the enterprise's business data. The Tally software is very efficient in its reports and easily integrates with many business functions like Finance, Inventory, HR, Sales, Purchasing, Payroll, etc. It allows businesses with financial statements, P&L accounts, ledgers, accounting books, etc. These are reflected on the bills receivable and bills payable, the summary of all business transactions, receipts etc., that are maintained daily and more. It helps in maintaining various facets of business easily. So, let’s know more about the concepts of bills receivable and bills payable.

Did you know?

Tally Solutions was founded in 1991 is headquartered in Bangalore. It has over 1.8 million clients, and its net revenue worth in 2021 was ₹500 Cr with a profit of ₹86 Cr.

What is bills receivable?

Let’s say company XYZ owes your company ₹50,000. This is a ‘bills receivable’ in your accounts and a ‘bills payable’ in the accounts of XYZ company. Thus, a bill of exchange is between two parties and may be reflected as bills payable or receivable. If the drawee accepts the payee’s bill and sends it back agreeing to the drawer’s bill, it is a bill receivable for the drawer as the payee still owes money on this bill. This is regarded as an asset to the organisation. The same bill becomes a bill payable to the drawee or payee. Since they owe money on the bill, it becomes a liability in their account books.

 The drawer can use the bill of exchange as follows:

  • Hold the bill till the date when it becomes payable or matures and have the drawee pay the money to them.
  • Use it by endorsing it to their creditor, who in turn will collect the bill when it matures.
  • Have their banker discount the bill for a small fee or commission.
  • Collect the bill through their banker when it matures.

How to view the Bills receivable report?

In Tally ERP9, the process is simple. 

  • Pull up the Display of the account on the Tally Gateway. 
  • Use the Accounts Statement and head to Outstandings and receivables and finally bills receivable or the bills receivable entry

  • The bills receivable screen displayed will show the entire list of clients whose invoices are receivable with details like date, the total amount, pending amount, reference number, when it is due, etc.
  • Working on the report has the ‘Maintain Balances’ option whereby you can manage bills one-by-one if required. This means you can have the invoice-by-invoice list and drill down to bill-by-bill listing using this option. 

Let’s look at the details provided on this screen and how to use them. 

Date: The date mentioned here is the invoice’s effective date and not the current or actual viewing date. For example, you are viewing the bills receivable today, and the invoice is effective from Jan 1st 2022; the date reflected is Jan 1st and not the current date. The credit period is always calculated from the invoice’s effective date. 

Reference Number: This field displays the invoice or bill’s reference number and reflects this on the screen showing bill-wise entries.

Client or Party Name: The ledger details of the client’s name are reflected here.

Pending Amount: The bills receivable is shown under the invoice’s outstanding balance and total bill value, reflected on the display. Pressing ‘Shift’ and ‘Enter’ allows you to view the details. To change or update this field, use the F1 function button to ‘Alter Details’, which allows you to move between the condensed and detailed views. Note that the outstanding amount details are to be updated with each payment by a party.

Date due-on: The field reflects the bill’s due date and is calculated using the bill’s effective date made when the voucher or invoice is entered. 

Also Read: How to Create A Ledger in Tally.ERP 9?

Button bar options for bills receivable report

Navigating and configuring the bills receivable format reports in Tally ERP 9 has the following button or function button options:

F1 function button

The F1 button allows you to move between the condensed and detailed versions of the invoice. Use Alt F1 keys to get at the voucher type, date, number, and amount details of each individual voucher.

F2 function button

This option allows you to make changes in the period field.

F4 function button

The bills payable is shown under the F4 button, which helps display and draw up the Bills Payable Report.

F6 function button

This function button provides the ‘Age-wise’ option of the invoices used in the ageing analysis reports of bills receivable.

F7 function button

This button allows the display of party-wise bills receivable listing. Using Alt plus F7, the report can be drawn up in the party-wise format, and this report is used to analyse the Bills Receivable Party-Wise Report.

F12 function button

This useful button is used to configure and use the settings to display your bills-receivable report.

Options associated with F12

When you click F12, you will get the following options:

F12 offers the following options:



Selected display

Include post-dated transactions

Yes / No

If you need to display the amount of the post-dated bill, set this to ‘Yes’. 

Display amount in other currency

Yes / No

Setting this to ‘Yes’ will display the bills in foreign currency. 

Display opening amount

Yes / No 

When set to ‘Yes’, this option will display the opening amount in the column.

Display Due-on

Yes / No

When set to ‘Yes,’ this option will capture the bill’s due date.

Display overdue age/days of the bill in days

Yes / No

When set to ‘Yes’, this option provides the age or number of over-due days of the bill. 

Display overdue using bill date

Yes / No

When set to ‘Yes’, this option displays only the over-due bills based on their age.

Range of bills to display

Pending bills/ Over-due bills

You have a choice to draw up your report using all pending bills or just the over-due ones.

Display order number with details

Yes / No

When set to ‘Yes,’ your display includes the order numbers.

Display Quantity in detail

Yes/ No

Set this to ’Yes’ if you need the detailed view of the stock details, product name, quantity, rate, etc.

Display Narrations

Yes/ No

This, when set to ‘Yes’, narrates the vouchers associated with the bill receivable.

The appearance of Names

Default/ Name only

This allows you to name the ledgers you want to be displayed.

Sorting method

Default / Sort by…

Here you can sort your details by suggesting the appropriate sorting method.

Function of F12

The F12 range button: Pressing Alt plus F12 uses the range option to find specified bills from the total list of pending bills. You can use filters like original amount, date, pending amount, reference number, ledger etc., from the dropdown box.

The R function button: This option or Alt plus R helps remove lines from the outstanding-bills report.

Example of bill receivable journal entry

Let us use an example to post the bill receivable journal entry on a bill of exchange receivable. Suppose Axis Limited which is an organisation that sells goods worth ₹15,000 to Bing Corp, the client. Then, Axis is the drawee of the bill of exchange and draws this bill on Bing Corp to be paid after 3 months.

  • Firstly, this is a credit sale for Axis Limited, who will post the journal as debit ‘Account Receivable’ for ₹15,000, and credit the “Sale” account by ₹15,000. 
  • When drawing the bills receivable account, Axis Limited debits it for ₹15,000, and the accounts receivable amount is to be credited for ₹15,000. 
  • If the bill is dishonoured, then Axis Limited debits the accounts receivable by ₹15,000, and credit Bing Corp account for noting charges of say ₹500 and credit bills receivable account for ₹15,000.

How do Bills payable differ from Bills receivable?

The table below helps understand bills receivable is which type of account, and the differences between the bills payable and bills receivable accounts.


Account- Bills Receivable

Account- Bills Payable


This is the amount for which the invoice is drawn when services or goods are sold on a credit basis. Generally, the amount carries a due-on date by which you receive the amount.

This is the amount for which the invoice is drawn when services or goods sold are bought on a credit basis. Generally, the amount carries a due date or date by which you must pay the amount.

Balance Sheet posting

A receivable bill is an asset as money is owed to the company. It may be current or non-current assets.

The company's payable bill is a liability as you owe the amount due.


It causes an inflow of cash in the working capital of a company.

It causes an outflow of cash in the working capital of a company.

Resulting from

It is the result of the credit sale.

It is the result of the credit purchase.

Differences between Accounts receivable and Bills receivable

The table below helps understand the bills receivable is which account and the differences between the accounts receivable and bills receivable accounts.


Account- Bills Receivable

Account- Accounts Receivable


Bills receivable is like a post-dated cheque and is a negotiable instrument in which the due-on date is specified. The customer or drawee draws the bill of exchange on the payee company.

The account receivable is the balance sheet asset showing the amount or value. 

Summary of

It is the summary of the amount due and acknowledged by your client as payable on the due-on date or maturity date.

It is the transaction summary of a credit sale and has an invoice issued against it.


The bill of exchange can be discounted with your bank on paying a fee. You can also transfer the bill to your creditors. 

There is no transferability option for the accounts receivable.

Balance Sheet entry

The bills receivable in balance sheet are non-current or current assets based on the seller offering them more than a year or less than a year of the credit period.

The account is a current asset in the balance sheet of the seller.

On default

If a receivable bill is dishonoured, the entire amount receivable and due is re-posted to the accounts receivable balance. Any noting penal charges are the responsibility of the drawee, and this fee is credited in addition to the amount due to the drawee account in the seller’s book.

In case of dishonour, the account receivable is treated as a bad debt and, if not collectable, written off in the accounting books of the seller. Legal action for recovery depends on the agreement between the parties concerned.

Also Read: All About Tally.ERP 9's Cost Centre


A bill of exchange between two parties, the drawee and drawing organisation or person, is an asset to the organisation accepting the bill and a liability to the organisation paying the bill. Maintaining the ongoing bills receivable account is an arduous task, and only large companies may be able to afford Tally ERP 9 to maintain the accounts of any organisation. Therefore, we hope you now have a fair understanding of the Bills Receivable Report and how to get it in Tally. 

Download the Biz Analyst app if you want to sync your business with Tally securely. This app lets users access business data anywhere, anytime. Fastrack your business by always staying connected, analyzing your sales growth, doing data entry and much more!


Q: How are the bills-receivable classified in the Balance Sheet?


The balance sheet reflects or classifies these as

  • Short-term bills due before a 1-year period post the balance sheet’s date of the drawing. These are called the current bills receivable assets in the balance sheet.
  • Long-term bills due after a 1-year period post the balance sheet’s drawing date. These are called the non-current bills receivable assets in the balance sheet.

Q: What entry is passed if a bills receivable invoice is dishonoured?


If the bill receivable is dishonoured by the drawee/vendor, then, 

  • You debit the specific account in the bills receivables account. 
  • You will also have to credit the bills receivable account using a double-entry system.
  • A bill dishonour always incurs charges, which must be suitably credited. 

Q: What is the procedure followed for a bill receivable that is dishonoured?


Whenever a bill of exchange receivable is dishonoured, and the amount due is not settled as per the agreement, and on the due date, it means you are still owed money. Hence, the bill goes back to the bills receivable account with a noting charge or penalty that adds on to the liability of the drawee client.

Q: How is “Accounts Receivable” shown in the balance sheet?


The ‘Accounts Receivable’ is an account wherein you are yet to receive the money and is hence listed as a current asset in the balance sheet. This account shows the nett balance owed to you by your customers due to the sales made on a credit basis.

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