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You generally receive two types of bills: bills for inventory that is for resale and other bills for overhead such as telephone, gas, electricity, and other services.
Inventory bills should be double checked against the Receiving Reports (Add Stock reports) that were printed when the items were received. The price of each item should be checked, and the total value of the bill should also be double checked.
If the value of an inventory item has changed dramatically, appropriate action should be taken. Often this includes phoning the supplier to remind them of the "special" deal that was offered, but you may also have to edit the PO or the inventory item and manually change the price of the item.
The bill for the inventory received is posted to Inventory Account in the General Ledger, as it is an asset to your business. It does not become an expense until you actually sell the inventory.
Note: This is different than a manual or cash based accounting system where the inventory purchases are posted immediately to cost of sales and then adjusted at the end of the year. You must remember to post to the Inventory Account and not to Cost of Sales.
Other types of overhead expenses, such as electricity or phone bills should be posted to the corresponding expense account. If you are in Canada, remember to post the GST input credit at the same time.
To post supplier bills see How to Post Supplier Bills.