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 and moreover, for the corresponding entry. 

Now, a material can both be something you’d account into inventories or directly to expenses if it’s something you don’t use in production but it’s used as a side-product, i.e. chemicals used for cleaning etc. For the purposes of showing how you’d recognize buying inventory we’re going to assume we bought say bread for manufacturing of sandwiches. Say you bought 100 units of bread for 150 CU (so that’s 1.5 CU for one unit of bread). It’s one thing to make the entry within the balance sheet, but another to recognize the purchase of units within your detailed inventory ledger (detailed listing where you’d show how many units with one unit price you bought).

If the latter is something for yourself to work out, whether you keep spreadsheets for that or invest into an accounting software that does it for you, we would like to show you how the general recognition of a supplier payable should look like:

Note here that the purchase may be subject to VAT as in within the 150 recognized is also a VAT amount which you would be able to ask back or deduct from your payable VAT. If that’s the case and assuming the VAT in this example is 10 CU, the accounting entry would instead look like this: