How do I enter vendor bills and track what my studio owes in MONA?

Quick answer: go to Finance, then Books, then Bills, and click New bill. Enter the vendor’s invoice, then click Approve bill. MONA books the cost on the bill date and adds it to accounts payable. When you pay, click Record payment or match the bank transaction that paid it, and the bill clears.

Accounts payable is what your studio owes vendors. Bills let your books show a cost in the month the vendor billed you, not the month the money left, which is how most bookkeepers run a design studio. See What is the difference between cash and accrual in MONA? for how that choice affects your reports.

How do I enter a vendor bill?

1. Click Finance in the sidebar, then the Books tab, then Bills.
2. Click New bill.
3. Pick the Vendor, or type their name if they are not a saved vendor yet.
4. Add the Bill number from their invoice, the Bill date, the Due date if it has one, and the Project.
5. Add a line for each item or charge. Cost lines post to your furnishings cost of goods account (COGS) unless you pick another expense account. A line can carry its own project; leave it on Same as the bill otherwise.
6. Click Attach vendor invoice to link the PDF or photo. It is saved to your Library.
7. Click Save draft to finish later, or Approve bill to book it.

A draft posts nothing. Approving posts one entry on the bill date: the cost accounts go up and Accounts Payable goes up by the bill total.

How do I create a bill from a purchase order?

1. Open the project, click the Procurement tab, and open the purchase order.
2. Click Create bill.
3. Choose Vendor’s invoice for the order for the final bill, or Deposit to place the order and enter the deposit amount.
4. MONA opens the draft in Books, then Bills. The final bill has one line per PO line at your cost, never the client price.
5. Check it against the vendor’s invoice and click Approve bill.

One purchase order can have several bills, for example a deposit bill and then the final bill. The Create bill window lists the bills already made from that order so you do not bill it twice.

How do vendor deposits work?

Many trade vendors want 50 percent before they place an order. That deposit is not a cost yet, because nothing has been delivered.

1. Enter it as a deposit bill: Create bill on the purchase order, then Deposit to place the order. Or add a line with the kind Deposit paid on any bill.
2. Approve and pay it. The money sits in Vendor Deposits, an asset, not in cost.
3. When the vendor’s final invoice arrives, create the final bill. MONA shows how much of that vendor’s deposit is not used up yet and offers Apply deposit, which adds a Deposit applied line that reduces the bill.
4. The full cost lands on the final bill, in the month the goods are billed, and only the balance is owed.

The Books Overview shows your total Vendor deposits next to Accounts payable.

How do I pay a bill?

Open the bill and click Record payment, then pick one:

• Record a payment for a check, wire or payment made outside your bank feed. Enter the amount, the date, and the account the money left (Cash unless you pick another).
• Match a bank transaction to pick the charge from your bank feed. A bank transaction is applied whole and dated the day it cleared.

You can also do it from the Bank inbox. When a transaction matches an open bill by vendor and amount, its row shows a chip such as Apply to bill #1042 · Rivera Upholstery · $4,200.00. Click the chip to apply it, or click Apply to bill to choose the bill yourself. MONA suggests; it never applies a payment on its own.

Applying a bank transaction makes it the bill’s payment, so it leaves the Bank inbox and is not posted a second time as an expense. If you had already confirmed it as an expense, MONA reverses that posting first. To undo a payment, click Remove next to it on the bill; MONA reverses it and a bank transaction goes back to the Bank inbox.

How do I see what I owe and how late it is?

The aging strip at the top of Bills shows what you owe in Current, 1-30, 31-60, 61-90 and 90+ days past due, and the Total owed. A bill with no due date is treated as due 30 days after its bill date. Click Export CSV to download the aging by vendor.

The same report is in the close pack under Accounts payable, and accounts_payable.csv is in the CPA package. See How do I run financial reports in MONA?.

Can I change or cancel a bill?

• Drafts can be edited freely or removed with Delete draft.
• Approved bills keep their bill number, due date, memo and file editable. The vendor, date, project and amounts are in the books; to change those, click Void bill and enter it again.
• Void bill posts a reversing entry and keeps the bill on record, marked void. A bill with a payment on it cannot be voided until you remove the payment.

Want a hand?

If your bookkeeper wants to walk through bills and deposits before you move a project over, book 30 minutes with the founder at calendly.com/mona-justin/30min and bring them along.

Frequently asked questions

What is accounts payable?

Accounts payable is what your studio owes vendors. When you approve a vendor’s bill, MONA books the cost on the bill date and adds the amount to accounts payable. When you pay it, accounts payable goes down and the cash or card balance moves.

What does approving a bill do?

It posts one journal entry dated on the bill date: each line’s cost account is debited and Accounts Payable is credited for the total. A draft posts nothing, so you can save half-finished bills safely.

How do vendor deposits work?

A deposit you pay a vendor before delivery is not a cost yet. Enter it as a deposit bill, or use Create bill on the purchase order and choose Deposit to place the order. It sits in Vendor Deposits, an asset. When the final bill arrives, MONA offers a Deposit applied line that uses the deposit up, so the full cost lands on the final bill in the month the goods are billed.

Will a bank transaction be counted twice if it paid a bill?

No. Applying a bank transaction to a bill makes it the bill’s payment and takes it out of the Bank inbox. If you had already confirmed it as an expense, MONA reverses that posting first so the cost is only in the books once. A transaction that is part of a finished reconciliation cannot be applied until you undo that reconciliation.

Can I change a bill after I approve it?

You can change the bill number, due date, memo and attached file. The vendor, date, project and amounts are in the books, so to change those, void the bill and enter it again. Voiding posts a reversing entry and keeps the bill on record. A bill with a payment on it cannot be voided until you remove the payment.

What if the vendor’s invoice has no due date?

MONA treats it as due 30 days after the bill date for aging and overdue flags. Add a due date on the bill if the vendor’s terms are different.

Where do bills show up in my reports?

Approved bills are in the profit and loss, balance sheet, trial balance and project profitability on the bill date. The Books Overview shows accounts payable and vendor deposits, and the close pack has an accounts payable section with aging that also exports in the CPA package.

Can I ask the MONA agent to enter bills?

Yes. Upload the vendor’s invoice in chat or describe it, for example enter a bill from Rivera Upholstery for 4,200 dollars on the Tribeca project. The agent can draft, approve and pay bills, create them from purchase orders, apply bank transactions, and read your aging.

Who can enter bills?

The owner, admins, and members an owner has given finance access. The Accountant seat can see every bill and the aging report but cannot change anything.