A purchase journal is a register that records all of a company’s purchasing transactions. It contains information on purchases of goods and services, including supplier details, date of purchase, quantities and costs. It serves as an important tool for keeping financial records and managing inventory.
Why do I need to keep a purchase journal?
Using a purchase journal offers several benefits to a business. It helps in the structured recording of all procurement transactions, which improves the accuracy of financial data. It also facilitates expenditure control and inventory management, which in turn can generate cost savings. In addition, it provides insight into supplier performance and assists in making strategic purchasing decisions.
Rules for keeping a purchase journal
A purchase journal must meet strict accounting standards, such as correctly recording all purchase transactions. It should contain detailed information on suppliers, purchase date, quantities, prices and total costs. Also, the purchase journal should be regularly updated and accurately maintained for reliable financial records.
How does TriFact365 use the purchase journal?
TriFact365 provides automated solutions for the purchase process, including the scanning and processing of purchase invoices. It simplifies and accelerates purchase journal maintenance through digital processing and integration with accounting software. Through real-time visibility, it optimises the efficiency of procurement administration. Read one of our customer stories on this topic here.