What document is recorded when you make a payment to a vendor bill?

When a payment is made to a vendor bill, the appropriate document recorded in the system is a Vendor Payment. This document serves as an official record of the transaction, indicating that a payment has been completed for the goods or services received as outlined in the vendor bill.

By documenting the payment, the system updates both the vendor’s balance and the accounts payable, ensuring accurate tracking of expenses and outstanding liabilities. This facilitates better cash flow management and provides essential financial insights into the company's obligations to vendors. Recording a vendor payment is crucial for maintaining clear financial records and ensuring that all transactions are accounted for correctly in the company's financial statements.