The components of a bill is liquidated either automatically or manually. The receivable components of a bill, however, will have to be liquidated manually. This is because when a component is due from a customer, and the customer is unable to pay, you debited your interest receivable account and credited the income account.

When the customer pays, liquidate the outstanding receivable components of the bill from the Bills and Collections Contract screen either by selecting Liquidate from the Application toolbar or clicking liquidate icon. Enter the liquidation amount and save the liquidation. The contract will be liquidated.