InventryBookSupplier bills and purchase records: a simple system for a small shop
InventryBook team ·
Where purchase money goes missing
Most shops lose track of purchases in three places: a bill that was never entered, a payment the distributor did not record, and GST counted on one side but not the other. Each looks small. Over a year they add up to arguments with suppliers and input tax credit your accountant could not claim.
A simple system needs four things: every bill entered whole, every payment written against the supplier, a monthly match with the supplier's statement, and a purchase register for the accountant.
1. Enter every bill whole, at its total with GST
When goods come in, enter the bill as the supplier wrote it: bill number, date, each line, the GST, and the total. The supplier will ask you for the total, so that is what you owe.
Example. A bill of ₹10,000 plus 18% GST is ₹11,800. If your book says you owe ₹10,000, you and the distributor are already ₹1,800 apart before anyone has paid a rupee.
Check the bill's total against its lines. Freight or round-off can make a small difference. A big one means a line was missed or typed wrong.
2. Write every payment against the supplier
Cash, UPI or cheque, write each payment on the same supplier's page the day you pay, with the reference. A payment made "from the drawer" and not written is the most common reason the supplier's balance and yours do not match.
3. Match the supplier's statement every month
Distributors send a statement of account (the party ledger): opening balance, each bill by date and number, each payment, and the closing balance. Put yours beside it and tick each line. A difference is always a bill or a payment one side does not have. Find it while both of you still remember.
4. Keep a purchase register for GST
Your accountant needs every supplier bill with the supplier's GSTIN, the value before GST and the GST, to claim input tax credit. A register you can hand over at month end saves them hours, and saves you credit lost to missing bills.
5. Late bills: enter them, don't skip them
A bill that arrives a week after the goods still belongs to the day it was made. Enter it with its own date so stock, cost and the supplier's balance are right for that day.
Doing this in InventryBook
In InventryBook you can photograph or upload a supplier's bill; the server reads it into lines to check. A PDF from the supplier's billing software reads best. On confirming, the stock, the cost of each item and the supplier's khata update together, and the khata is posted at the bill total with GST. Payments go on the same supplier's account. Purchases › a supplier › Statement shows opening balance, bills, payments and closing balance to match with the distributor's, and the purchase register lists every bill with GSTIN, value before GST and GST for your accountant. Bills can be entered with their own date for up to 7 days back. See it for kirana and general stores.
Frequently asked questions
Should I enter the bill when goods arrive or when I pay? When the goods arrive. Stock and what you owe both change that day; paying is a separate entry.
What if the supplier's total differs from the lines by a rupee or two? That is usually round-off or freight. Enter the total the supplier wrote, so your balance matches theirs.
Do I need GSTIN on every purchase bill? For input tax credit, yes: a bill without the supplier's GSTIN cannot be claimed.