Ways of Credit and Cash Purchase of Merchandise Inventory.

Merchandise Inventory.

Definition: Merchandise inventory is goods that have been acquired by a distributor, wholesaler, or
retailer from suppliers, with the intent of selling the goods to third parties. The transaction may occurred
by Credit or Cash purchase.
Documentation for Cash Purchase of merchandise inventory
1.Preparation of payment (CPV,CK & Withholding )
2.Preparation of GRN
-Original GRN Stamp “ PAID” attach along with CPV
-Supplier CSI stamp “ PAID” attach along with CPV
-Copy GRN stamp “ PAID” write “for Memo” on it & File on GRN box file
3.Final documentation
CPV + Original GRN + Supplier CSI & Post in Peachtree accounting on „Payment‟.
Steps for posting cash purchase of merchandize inventory
1.From task menu select “Payment”
2.Select supplier ID/Vendor ID or Write supplier name in the name field
3.Enter Payment date , CPV/CK No and write GRN no in the „Memo‟ field.
4.Under “Apply to Expense” tab enter quantity, item type & unit price of the purchased item continue
entering other items once you finished theitems,
VIRTUAL Accuntancy Training Documents, Last Revised JUN 2019 Page 29
Write Descreption VAT Recivable and select GL Account from the list(if it has VAT ) and Select
Withholsing Tax Payable if there is witholding tax.
5.Check the Journal entry & then save
6.On CPV document write “Post”
Steps for posting credit purchase of merchandize inventory copy GRN
1.From task menu select “Purchases/Receive inventory”
2.Select supplier (Vendor) name from the list box
3.Enter transaction date & GRN number .
4.Donot enter any transaction on this window because there is no purchased invoiced attached simply
select „Save‟
5.On GRN document write “Post”
Documentation for Credit Purchase of merchandize inventory
1.Preparation of GRN for the Item purchase
2.Original GRN to suppliers
3.Copy GRN & supplier CRSI attached and forward to accounts section.
4.Accountant‟s post those document “Purchases/Receive inventory”& file.
Steps for posting Credit purchase of merchandize inventory GRN
1.From task menu select “Purchases/Receive inventory”
2.Select supplier (Vendor) name from the list box
3.Enter transaction date & GRN number .
4.Under “Apply to Purchase” tab enter quantity, item type & unit price of the purchased item continue
entering other items once you finished the items,
Write Descreption VAT Recivable and select GL Account from the list(if it has VAT )
5.Check the Journal entry & then save
6. On GRN document write “Post”