Purchase Journal

Special journal, also called a purchase day book, used to record credit purchase invoices before posting to payables and expense or inventory accounts.

Definition

A purchase journal is a special journal used to record supplier invoices for credit purchases. It is also called a purchase day book, purchases journal, or bought day book in some bookkeeping systems.

Why It Matters

The purchase journal gives the accounting team a controlled record of supplier invoices before amounts are posted to accounts payable, supplier subsidiary ledgers, inventory, expenses, or other accounts. It supports vendor follow-up, purchase cutoff, and liability completeness.

How It Works In Accounting Practice

Each entry normally identifies the invoice date, supplier, invoice number, description, amount, tax if applicable, and posting reference. Supplier-level detail supports the accounts payable ledger. Totals support the accounts payable control account and the relevant expense or asset accounts in the general ledger.

FieldWhy It Matters
Invoice dateSupports expense and liability cutoff
SupplierSupports vendor account posting
Supplier invoice numberConnects the journal to the source document
DescriptionHelps classify the purchase correctly
AmountSupports payable, expense, inventory, or asset posting
Posting referenceShows when the invoice was posted to the ledger

Practical Example

A company receives a $1,800 supplier invoice for inventory purchased on credit:

AccountDebitCredit
Inventory1,800
Accounts Payable1,800

The invoice appears in the purchase journal first, then updates the supplier account and general ledger.

Common Confusions

The purchase journal is for credit purchases, not supplier payments. Payments to suppliers usually appear in a cash payments journal or cash book.

The purchase journal also does not prove the purchase is classified correctly. The accountant still needs to decide whether the amount belongs in inventory, supplies, repairs, prepaid expenses, fixed assets, or another account.

FAQ

Is a purchase journal the same as a purchase day book?

In many bookkeeping systems, yes. Both terms refer to the book of original entry for credit purchase invoices.

Does the purchase journal include cash purchases?

Usually no. Cash purchases are normally recorded in a cash payments journal or cash book.

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