Purchase Journal

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For the purpose of accounting, all purchases are accounted for in

 
Accrual basis, i.e. the purchases(of goods and services) liability is recognized upon receiving the goods and services, and payment made at a later date.
Versus
cash basis accounting that recognizes the purchases only when payment is made. (Or on credit terms)

 

:How to record a supplier invoice in the Purchase Journal                                                 : How to record or accrue monthly staff salary  

 


 

Purchases can be categorized by stock (for the purpose of reselling)  or non stock purchases ( services rendered, freight, utilities, rental or employees' time  to your company, )

Purchases can also be bought by credit or cash terms.

 

You must "open" an account in your supplier master (if you are going to transact with them regularly) first before you can record their invoices into the system.

Purchases for reselling purposes that requires to monitor the quantity or unit cost will be entered in Supplier invoice (Premium Plan)

Services that are provided by your supplier to your company will be recorded here

Example : Transport charges incurred by the company can be an expense if your company bears the cost or you can bill your customer with or without a markup.

 

 

Note: For users who use Realtimme system for book-keeping purpose only, both purchases of goods and services will be entered into the purchase journal, instead of the supplier invoice.

 

 

 

Purchases : Cost of Goods Sold

If you are in the business of buying and selling printing and stationery, you are keeping the Accounts Payable only, you need not keep track of the physical count of the stocks, you will take up the $2000 as purchases (Cost of Sales)

instead of expenses in the Purchase Journal module.                                                                                  

 

 

 Accounting Entry: If your company is GST registered (See Fig 1)

 

 

COA

Debit

Credit

Purchases

M-P001-1

2000.00

 

GST - Input Tax

D-G001-1

140.00

 

Trade Creditors Control- Super

 

 

2140.00

                                                                                     

                                                                                                   See Document Date   See Fast code

 

 

 Accounting Entry: If your company is is not GST registered (See below, Fig 2)

 

 

COA

Debit

Credit

Purchases

M-P001-1

2140.00

 

Trade Creditors Control- Super

 

 

2140.00

 


 

 

 
 

Last invoice No..Purpose of....   [Read More...].                                        

Enhancement on 17/7/2017 to display [Last invoice number]

 
Supplier invoice number can be 0005984 or INV0005984 but user may enter as 5984 and other time, INV0005984

With the display of last invoice number of this same supplier, you will follow the order of the invoice number. (System will warn you if you duplicate)

 

Benefit :

1. This will prevent you from entering invoice number INV0005688 when system display the last number as 0005688 entered by the previous user.

   (INV0005688 is different from 0005688)

2. Avoid inconsistent invoice number recorded.( INV0005688 and the next is 0005688, without the prefix INVXXXXX)

 

 

 
 
 
Purchase of Goods as expenses

If the stationery is for internal use, it will be charged to the printing and stationery expenses.
Do not need to enter the Fast code

 

 

 

Accounting Entry:

 

 

COA

Debit

Credit

Printing & Stationery Expenses        

O-P001-1

200.00

 

GST - Input Tax

D-G001-1

14.00

 

Trade Creditors Control

 

 

214.00

 

Do you know that you can record your purchases inclusive of GST...Read more...

 
             Enter the amount inclusive of tax and the system will re-gross back to before tax amount
 
           
               
                  See Supplier's credit Journal inclusive of GST

 

Next , learn how to make a direct payment : GL direct payment

 


                   

Related Topics

Payment to supplier

 

Type : Opening

 

Supplier Master

 

Tax - P (Standard Purchases)

FAQ :

Tax code missing

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http://realtimme.cloudapp.net/basic/index.html?purchase_journal.htm