Purchasing Journal Entries | Zayls

Users can check on the journal entries in different transactions by selecting the Journal tab.

PURCHASE ORDERS

No journal entries are created in Purchase Orders since there are no movements yet in relation to inventory or cash.

RECEIVE ORDERS

The journal entry will record the Net of VAT amount from the Purchase Order.

Journal Entry:

• Dr Inventory (selected during the creation of product)

• Cr Accrued Expense

BILLS

The journal entry will depend on the transaction. If it has VAT and Withholding Tax, then corresponding entries will be added.

Journal Entry:

• Dr Accrued Expense

• Dr Input VAT

• Cr Accounts Payable

• Cr Expanded Withholding Tax

For AdHoc Bill, the specific COA can be selected by the user to Bill the accounts.

Journal Entry:

• Dr COA account

• Dr Input VAT

• Cr Accounts Payable

• Cr Expanded Withholding Tax

PAYMENTS

In Payments, the journal entries are usually the Accounts Payable and Cash in Bank, however, if there are additions, deductions, and advances, the corresponding accounts will be included for them.

Journal Entry:

• Dr Accounts Payable

• Dr Additions (account)

• Cr Cash In Bank (specific account selected in the Bank Account)

• Cr Deductions (account)

• Cr Advances to Supplier

• Cr Accounts Payable (for Purchase Returns deduction)

PURCHASE RETURN

When creating Purchase Returns, EWT can be controlled by the user by selecting from the EWT dropdown.

Journal Entry:

• Dr Accounts Payable

• Dr Expanded Withholding Tax

• Cr Input VAT

• Cr Purchase Return (contra inventory)

PURCHASE REFUND

Journal Entry:

• Dr Cash In Bank (specific account selected in the Bank Account)

• Cr Accounts Payable

Related Articles: Sales Journal Entries