Purchase ledger

From CEOpedia | Management online
Purchase ledger
See also

The Purchase Ledger, sometimes also called the creditors ledger, is a record off every wares and services you have bought for your business. A computerised purchase ledger will obviously be anticipated to keep the purchase ledger up to date and of course, also it ought to be able to output different reports required by the user. In fact, a computerised purchase ledger is pretty much the same as a computerised sales ledger, excepting that it is a kind of mirror reflection as it deals with acquisitions rather than sellings [1].

This may contains for instance [2]:

  • stock acquisitions
  • phone spendings
  • stationery purchases

Inputs to a purchase ledger system

Details to be registered in the purchase ledger contain [3]:

  • quantity of invoices
  • carrier's name
  • date of carrier's invoices
  • quantity of Goods and Service Tax (GST) – if appropriate
  • date invoices was paid
  • adjustments

Processing in a purchase ledger system

The essential action carried on updating the purchase ledger is adjusting the quantities of unsettled on the supplier accounts. These quantities will show cash owed to the suppliers. The computer will conform the owed brought-forward balance by summing or substracting the worth of dealings as you tell it to. The caried-forward balance starts out the new balance saved on the carrier's account. This achievements is the same to updating the accounts in the sales ledger, but that the sales ledger balances are debits, in other words- trade receivables, and the purchase ledger balances are credits, in other words- trade payables [4].

A purchase ledger’s useful facilities

A purchase ledger package can offer a few of useful facilities including the following [5]:

  • Printing a prediction of money requested for payments in the near future
  • Printing a list of invoices due for payment
  • Keeping track of what you owe you carriers, and of how much has been paid against detailed invoices
  • Printing bank transfer advices and cheques for any invoices checked for payment


  1. BPP Learning Media, (2010), s. 11
  2. Worthington K, (2006), s. 3
  3. Worthington K, (2006), s. 3
  4. BPP Learning Media, (2010), s. 11
  5. Stang N, Blewett F, (2014), s. 164


Author: Paulina Matysiewicz