Archive / 2.10 Purchases and Payables

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Purchasing is an important process within an entity’s business. Effectively you’re purchasing everything you need – your supplies, your services, your employees’ time and so on. When we talk about purchasing, we’re talking about things you’re buying for your company for your business.  (more…)

Recognizing paying to suppliers

Recognizing supplier payables is one thing; it’s another to pay those payables however. We’ll discuss separately all the routines governing the handling and an appropriate approach when it comes to supplier invoices (i.e. how you ensure that you’re paying for the right service or material, in the right price and in due time), as it […]

Recognizing purchase of materials

Making purchases is part of everyday business. You cannot cooperate without buying certain services or materials (unless you’re actually producing materials and finished products from them yourself and don’t require any outside service, i.e. internet, paper to print invoices on etc.). So as such you need to familiarize yourself with recognizing accounting for such payables […]

Recognizing credit invoices from suppliers

There are times when your suppliers make mistakes with their invoices, i.e. the amounts are wrong, the prices are misstated or there are inaccurate discounts given and so on. In such situations your suppliers issue credit invoices (obviously this is subject to you informing them of the mistake most of the times).  (more…)

Recognizing supplier bonuses

Supplier bonuses are pretty useful things if you can negotiate those with yours. Primarily they help you reduce your cost for materials you’re using, for services you’re buying and so on.  (more…)

Supplier confirmations based on volumes

There are times when you’d want to confirm your supplier balances, but you’re not sure from which to base the selection from. There’s the balance and there are transactions during a determined period – two measurable amounts to base the selection from but which to choose.  (more…)