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Purchase entries

You make entries for your purchase invoices in a purchase journal. As a result of this, an outstanding item is automatically created for the selected creditor (purchase contact). Once you have made the payment, you can write off the outstanding item using a bank or cash journal.

This subject only concerns purchase entries for which you record the purchase invoices 'manually' in a purchase ledger. In Profit, you can also record purchase invoices and later journalise them, which causes Profit to 'automatically' generate the purchase entries in a purchase journal. This applies, for example, to purchase invoices from Profit Order management.

Content

Description

If you make a purchase entry in a purchase journal, the following journal entry is created:

Account

Debit

Credit

To creditors

 

amount incl. VAT

Cost account

amount excl. VAT

 

VAT due

VAT amount

 

The amount of the outstanding item (the invoice amount that you must pay to the creditor) is recorded in the Crediteuren summary account against the creditor number.

You can speed up the entry process by linking a Preferred contra account in the creditor properties.

You can itemise the invoice amount across multiple lines, for example, because it is for different products or cost types. For each entry line, you select a different ledger account and you enter the amount that applies. The same applies to amounts that have different VAT percentages.

Payments

If you have paid an purchase invoice, you enter the payment in a cash book or bank journal. At the same time, you select the outstanding item in question, causing it to be written off. If payment is made by bank then the following journal entry is made in Profit:

Account

Debit

Credit

Creditors

amount incl. VAT

 

To bank

 

amount incl. VAT

Preparation

Procedure

Also see

Process

Entries