Bills are relevant for processors that don't allow saving payment details, like PayPal. They are generated when it's time for the customer to make a recurring payment (for example, a monthly membership that they pay for with PayPal) - these customers will need to log in and pay their bill manually.

You can find Bills under To-Dos >> Open Invoices - Bills.

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To-Dos: Invoices - Pending Offline
​To-Dos: Invoices - Failed
​Introduction to the To-dos section
​Transitioning to To-dos