Indian accounting · worked entry
Purchase entry in accounting: from supplier invoice to payment.
A purchase bill and the payment against it are separate accounting events. Here is the journal logic, with a simple Indian-business example.
Example: goods purchased on credit
A trader receives a supplier invoice for goods worth ₹10,000, excluding any GST. For this basic illustration, assume a purchases account and no taxes or adjustments.
| Account | Debit | Credit |
|---|---|---|
| Purchases (or inventory, depending on accounting policy) | ₹10,000 | — |
| Supplier payable | — | ₹10,000 |
The supplier balance remains outstanding until payment or another valid adjustment is recorded.
Later payment: settle the supplier balance
If the trader pays the full ₹10,000 by bank transfer, debit the supplier payable and credit the bank ledger. The purchase is not recorded a second time.
| Account | Debit | Credit |
|---|---|---|
| Supplier payable | ₹10,000 | — |
| Bank | — | ₹10,000 |
Before approving the actual entry
Check invoice date and number, GSTIN, party and item master, taxable value, tax split, adjustments and bill reference. Record GST input credit only after checking the invoice, eligibility and relevant reconciliation evidence.
Fastbooks can prepare purchase-document fields from a bill photo; the reviewer still decides whether the party, ledgers, stock and tax treatment are correct.
FAQ
Frequently asked questions
Does a purchase invoice mean it has been paid?
No. A purchase on credit records a payable to the supplier. A later payment reduces that payable and the bank or cash balance.
Where does input GST appear?
Eligible input tax may be recorded separately from the purchase value when the invoice and the relevant GST rules support the treatment. Verify eligibility and tax ledgers before posting.