Debit Notes

What is a purchase ledger and what is there role in the workplace?

Public Comments

1. The purchase ledger keeps track of all the supplies you have bought for your business for resale. You need to keep track for your end of year accounts, management accounts, vat etc.
2. Purchase ledger handles all your suppliers' accounts. Your suppliers are other organisations or individuals you buy your goods and/or services from. It is necessary to have a purchase ledger individual or department (depending on the size of your organisation) in your business. In simplistic terms, their main function is to ensure that you have received a bill (invoice) from all your suppliers for goods and services received, and that those invoices are paid (on time). The work that the purchase ledger does feeds into other areas such as your month-end management accounts, year-end Final accounts, VAT (depending on the size of your business in monetary terms and whether you are registered for VAT), etc.