Bills
Bills are what your suppliers send you. Recording them, rather than just the payment, means you can see what you owe and when it's due.
Bills to pay
New bill (⇧⌘B) works like an invoice: the supplier, their Supplier's invoice number, the due date and the lines, each with a category. Attach the PDF they sent.
Record payment when you pay it. A paid bill has a Remittance advice to print or email, so the supplier knows what the payment was for.
Overdue bills are counted in the sidebar, and Who you owe in Reports lists them by how long they've been owing. Bills can be recurring too.