When you create a bill in Wave, you add products or services to it. Each product and service has an expense account associated with it, which you selected when creating the item. This expense account is where all transactions involving the item are tracked in your reports.

To change the expense account, edit the product or service. This change will not reflect on your past bills. Learn how to update the expense account for a product or service on past bills.

The unpaid bill total is tracked automatically as a liability in your accounts payable. Once the bill is marked as paid, your accounts payable liability is reduced by the same amount.

You can mark the bill as paid from the Bills page, which creates an expense transaction. If the transaction already exists, categorize it as Payment sent for a bill in Wave, then select the outstanding bill instead.