Category Archives: 2.10 Purchases and Payables


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.  Continue reading

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 is, with this we want to give you an overview of which accounting entry you make within your books when you’re paying to your suppliers.  Continue reading

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 and moreover, for the corresponding entry.  Continue reading