Keeping track of bills can quickly become confusing when you manage multiple stakeholders and rely only on ledger balances. That’s where bill-wise outstanding tracking makes a real difference. It helps you monitor each invoice separately, understand exactly which bills are pending and take timely action on overdue payments.
In this blog post, you’ll learn how to configure bill-wise outstanding tracking in your billing system and generate accurate reports.
What is bill-wise outstanding tracking and why is it important?
Bill-wise outstanding tracking is an accounting method that allows you to track pending amounts invoice by invoice instead of looking only at the total ledger balance. When you record transactions with bill references, you can clearly see which specific bills are unpaid, partially paid or overdue.
This approach provides greater financial clarity and helps you manage balances more accurately.
Why is bill-wise outstanding tracking important?
- Helps you identify unpaid or overdue invoices
- Improves receivables and payables control
- Supports timely payment follow-ups
- Reduces reconciliation errors
- Provides accurate data for outstanding reports
How do you enable bill-wise outstanding tracking in your billing software?
Enabling bill-wise outstanding tracking in your small business billing software is straightforward. You can follow these step-by-step instructions to activate the feature correctly.
Step 1: Open company accounting settings
Start by logging into your billing software and opening the accounts you want to manage. Go to the main settings or features section where accounting-related configurations are maintained.
Step 2: Enable advanced accounting features
Open the accounting or invoice configuration menu and look for options related to bill-wise details. If advanced accounting features are turned off, enable them first to access bill-level controls.
Step 3: Activate bill-wise outstanding tracking
Find the option to maintain balances bill-by-bill and set it to “Yes” or “Enable.” This allows all future transactions to be recorded using individual bill references.
Step 4: Review bill adjustment options
After enabling bill-wise tracking, check the settings related to bill adjustments. These options let you adjust receipts or payments against specific invoices or keep amounts on account when needed.
Step 5: Save and apply the configuration
Once you select the required options, save the configuration. The system will begin tracking outstanding amounts at the invoice level instead of showing only total ledger balances.
Step 6: Verify the Setup
Create a test transaction such as a sales invoice or a receipt entry to confirm that bill references appear correctly. This helps ensure the feature works as expected before you enter regular business data.
How do you generate bill-wise outstanding reports?
Generating bill-wise outstanding reports in your small business billing software helps you get a clear picture of pending receivables and payables at any point in time. Once bill-wise tracking is enabled, these reports are available in the standard accounting reports and can be accessed with just a few clicks.
They allow you to review invoice-level balances instead of relying on summary ledger figures.
To generate bill-wise outstanding reports
- Open the reports or display menu in your billing software
- Select outstanding or receivables/payables reports
- Choose the bill-wise or bill breakup view
- Apply filters such as party name, date range or ageing period
- Export or print the report for follow-up or review
Conclusion
Configuring bill-wise outstanding tracking and reports helps you bring structure and accuracy to your accounting process. When you monitor receivables and payables at the invoice level, you gain complete clarity on pending dues, overdue bills, and advance payments, making follow-ups timely and more effective. This practice also minimises reconciliation issues and supports better cash flow planning for your business. By regularly reviewing bill-wise outstanding reports, you can make informed financial decisions and maintain strong control over customer and supplier accounts.
To implement these features efficiently and ensure reliable results, you can use TallyPrime, a robust accounting software designed to simplify and strengthen your day-to-day accounting operations.
