Once you have received your product, sooner or later you should receive a bill. This is often called a supplier or vendor invoice. It is of course possible to receive a bill before you receive products. Each business will have to decide the exact workflow for when they pay bills, and under what conditions.

To create a vendor bill, go to the Invoicing menu and select Purchases | Documents | Vendor Bills:

Click Create to bring up the Vendor Bills form.

In the workflow, the user should now have received the vendor bill either electronically, by mail, or in another form that they need to pay. Use the Vendor drop-down menu to select the vendor.

Next, use the Add Purchase Order drop-down menu to select the purchase order PO00001 : $ 100.05 as the one we wish to pay:

At this point, you will see all the necessary information from the purchase order, including the product, description amount, and tax:

From here, you can click Validate to create the bill. This will then leave the bill in an open status until you register a payment or ask for a refund.

So, let's pay this bill. Click on Register Payment:

Most of the information will automatically be filled out, including Payment Date and Payment Amount. You can change these if necessary. The one piece of information you must provide is the Payment Method. For our example, we have chosen Bank (USD).

The Memo can be used to create whatever note you wish to document this payment. For example, you can use the Memo field to specify the check number you use to pay your vendor.

Odoo will allow you to configure multiple payment methods. For now, choose Bank and click Validate to complete the transaction.

You have now completed the entire purchasing cycle from purchasing, to receiving, to finally paying for the product:

In the prior screenshot, you can see the final paid invoice for our purchased products. Notice at the bottom right of the form it shows that we have a balance of zero. Now, we can also see a summary of the payment by hovering over the little information icon above the amount due.