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For the purpose of accounting, all purchases are accounted for in
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)
Accounting Entry: If your company is is not GST registered (See below, Fig 2)
If the stationery is for internal use, it will be charged to the printing and stationery expenses.
Next , learn how to make a direct payment : GL direct payment