All 25 Sales & Purchase Ledgers questions
More in Sales & Purchase Ledgers
Why are the sales and purchases ledgers called memorandum (subsidiary) ledgers? What documents update the sales and purchases ledgers? What is accounts receivable and accounts payable? What is a credit customer versus a cash customer? How is a customer's account in the sales ledger written up? How is a supplier's account in the purchases ledger written up? What is a contra between the sales and purchases ledgers (set-off)? How do you deal with a credit balance in the sales ledger? What is an aged receivables (debtors) analysis and why is it used? How is a refund to a customer or from a supplier recorded?
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What is a purchase invoice checked against before posting?

Beginner

Answer

Before posting, a purchase invoice is checked against the purchase order (that it was ordered), the goods received note (that goods arrived), and for arithmetic/price/VAT accuracy. This three-way matching ensures the business only records and pays for goods correctly ordered and received.
Real-world example The bookkeeper matches the supplier invoice to the order and delivery note before entering it in the purchases day book.

Common follow-ups: What three documents are matched? | Why match before posting?

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All 25 Sales & Purchase Ledgers questions