Understanding Bills
Learn the key concepts and terminology for vendor billing in ReadyBuild.
Bill Statuses Explained
Draft
Bills start in Draft status when:
- Required fields are missing (vendor, project, due date)
- Line items don't have cost codes or units assigned
- The bill was imported but needs review
Draft bills can be edited freely and won't affect financial reports until moved to a later status.
Billed
A bill moves to Billed status when:
- All required fields are complete
- The bill is ready for internal review
- You're waiting for approval to pay
Ready to Pay
Bills marked Ready to Pay have been:
- Reviewed and approved
- Scheduled for payment
- Cleared for processing
Paid
Bills are marked Paid when:
- Payment has been issued (check, ACH, credit card)
- The payment date and method are recorded
- QuickBooks payment record is created (if synced)
Void
Void status is used when:
- A bill was entered in error
- The vendor canceled the invoice
- A duplicate bill was created
- A paid bill needs to be reversed
Unlike deletion, paid bills can be voided. This clears the payment information while preserving the audit trail.
The only restriction: bills with an active Checkbook.io payment cannot be voided until the payment is processed or canceled.
Bill Types
One-Off Bills (Type 0)
Standard bills entered manually or imported:
- No schedule association
- Due date set explicitly
- Most common type
Scheduled Bills (Type 1)
Bills linked to project schedules:
- Tied to a schedule task
- Due date calculated from task deadline
- Options: X days before/after the task deadline
Example: "Bill due 5 days after Framing completion"
Variance Tracking
Bills can be flagged as variances to track cost overruns:
Is Variance Flag
Toggle this when the bill represents an unplanned cost:
- Change in scope
- Price increase
- Additional work required
Variance Codes
Categorize the reason for the variance:
- Customer Request
- Unforeseen Conditions
- Design Change
- Subcontractor Issue
- Material Price Change
Variance tracking helps analyze project profitability and identify patterns in cost overruns.
Bill Amount Calculation
The total bill amount is calculated from line items:
Bill Total = SUM(Quantity x Unit Cost) for all line items
Each line item contributes:
- Quantity (qty) - How many units
- Unit Cost (unit_cost) - Price per unit
- Total = qty x unit_cost
Unlike some systems, ReadyBuild doesn't have a separate header amount field. The bill total is always calculated from line items.
Cost Code Integration
Line items are assigned cost codes that:
- Categorize expenses for job costing
- Map to your company's cost structure
- Enable budget vs. actual comparisons
- Feed into financial reports
When a bill is for a specific project, the cost code determines which budget category the expense applies to.
QuickBooks Sync Flags
Send to QuickBooks
When enabled, the bill syncs to QuickBooks:
- Creates a Bill record in QB
- Maps vendor to QB Vendor
- Includes line items with Item references
Mark as Owner
Flags the bill for owner-related reporting and categorization.
File Attachments
Invoice Documents (Type 1)
Original vendor invoices and receipts:
- PDF invoices
- Scanned receipts
- Email confirmations
Lien Waivers (Type 2)
Legal documents from subcontractors:
- Conditional waivers (before payment)
- Unconditional waivers (after payment)
- Required for draw requests and closings
Relationship to Other Records
Bills connect to several other records:
| Related Record | Relationship |
|---|---|
| Vendor | Contact who issued the bill |
| Project | Project the bill applies to |
| Purchase Orders | POs this bill fulfills |
| Cost Codes | Budget categories for line items |
| Variance Codes | Reason for cost variance |
| QuickBooks Entity | Synced QB Bill record |
Bill Numbers
Bill numbers are auto-generated:
- Sequential within your company
- Zero-padded to 5 digits (00001, 00002, etc.)
- Cannot be changed after creation
The Vendor Bill Number field stores the vendor's invoice number for reference.