Debts records what the business owes on borrowing rather than on invoices: loans, credit cards, lines of credit, equipment financing and mortgages.
Why it is separate from bills
Bills you owe are invoices from suppliers — variable, and they stop when you stop buying.
Debt is committed. The payment is due next month regardless of whether the phone rings, and that is what makes it a different kind of obligation and worth its own record.
What it gives you
The total owed, and the total monthly payments those debts commit you to.
That second figure is the one most worth having and least often known. It is the floor under your monthly costs — the amount that must be earned before anything else is paid, in a month with no work at all.
Adding one
Each entry carries the type, the amounts, the monthly payment and the start date, with room for notes.
A recurring payment detected in your transactions can be added here directly, which is the easier path. See recurring payments.
The distinction that matters for your accounts
A loan payment is not an expense. Part of it is interest, which is; the rest is repayment of borrowed money, which is not.
Treating the whole payment as an expense understates your profit and overstates your costs. It is one of the most common bookkeeping errors in small businesses, and recording debts properly here is what avoids it.
Reading it
Against your income, the monthly total tells you how much of the business is already spoken for. See debt service coverage, which is the formal version of the same question and the one a lender will ask.