Recognizing supplier payables is one thing; it\u2019s another to pay those payables however. We\u2019ll 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\u2019re paying for the right service or material, in the right price and in due time), as it is, with this we want to give you an overview of which accounting entry you make within your books when you\u2019re paying to your suppliers.\u00a0<\/p>\n
Taking our previous example, say you\u2019re now going pay for those bread units and you owe to your supplier 150 CU. Note here that the VAT is still paid to your supplier who himself declared it with the tax authorities as VAT payable. For you the amount payable is still 150 CU.<\/p>\n
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#<\/strong><\/td>\n| <\/td>\n | Debit-Credit<\/strong><\/td>\n | <\/td>\n | Account name<\/strong><\/td>\n | <\/td>\n | Amount\u00a0<\/strong><\/td>\n | <\/td>\n<\/tr>\n | <\/td>\n<\/tr>\n | 1<\/em><\/td>\n | <\/td>\n | Debit<\/em><\/td>\n | <\/td>\n | Payable to suppliers<\/em><\/td>\n | <\/td>\n | 150<\/em><\/td>\n | <\/td>\n<\/tr>\n | <\/td>\n<\/tr>\n | \u00a0<\/em><\/td>\n | <\/td>\n | Credit<\/em><\/td>\n | <\/td>\n | Cash and cash equivalents<\/em><\/td>\n | <\/td>\n | 150<\/em><\/td>\n | <\/td>\n<\/tr>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | <\/p>\n Note that with a credit you increase your liabilities, but with a debit you’d show the increase in a respective liability account.<\/p>\n It\u2019s important to note that the\u00a0Payable to suppliers<\/em>\u00a0shouldn\u2019t just be a total amount on your balance sheet, but actually have a detailed ledger behind it showing balances by suppliers you owe to. This way you know exactly which invoices and to whom are still outstanding and which have been paid.<\/p>\n","protected":false},"excerpt":{"rendered":" Recognizing supplier payables is one thing; it\u2019s another to pay those payables however. We\u2019ll 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\u2019re paying for the right service or material, in the right price and in due time), as it […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80],"tags":[],"class_list":["post-5316","post","type-post","status-publish","format-standard","hentry","category-2-10-purchases-and-payables"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5316"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5316\/revisions"}],"predecessor-version":[{"id":5317,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5316\/revisions\/5317"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5316"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |