Small Business Practical Accounting - Business Edition

Author: Lei Jian
Publisher:
Publish Date: 2006-09-01
Features:
5.1 Business Procedures for Wholesale Goods Purchases
The characteristics of wholesale goods business are as follows: large volume of goods bought and sold, complex variety of goods; high inventory levels, scattered storage locations; a wide range of buyers and sellers, and diverse purchasing and selling methods. Therefore, in terms of accounting, strict procedural systems are required to comprehensively reflect the entire process of goods circulation in terms of both value and quantity. Various vouchers that can reflect the names, quantities, and amounts of goods are filled out and accepted to control and monitor the purchasing and selling activities. The business process of wholesale goods includes three stages: purchasing, selling, and storage. Purchasing is the starting point of the business process, providing a material foundation for selling and storage. The channels for wholesale goods purchases include buying from industrial and agricultural production departments, as well as from other small commodity circulation enterprises and receiving imports. The methods of purchasing include local purchases, cross-regional purchases, prepayment, installment payments, and delayed payments. Due to differences in purchasing channels, methods, and delivery procedures, the business procedures and accounting methods may also vary.
1. General Business Procedures for Local Goods Purchases
Small enterprises purchasing goods locally typically use delivery or self-pickup systems for goods delivery, with payments settled through checks, bank drafts, or entrusted collection. When purchasing, the business department verifies the "special invoice" from the supplier to ensure that the names, specifications, quantities, unit prices, and amounts listed are consistent with the contract terms. The basic copies of the Value-Added Tax (VAT) special invoice are uniformly specified as four copies, each of which must be used for the following purposes:
- The first copy is the retention copy, retained by the seller for reference.
- The second copy is the invoice copy, used by the buyer as a payment ledger document.
- The third copy is the tax deduction copy, used by the buyer as a tax deduction document.
- The fourth copy is the ledger copy, used by the seller as a sales ledger document.
After verification, if there are insufficient copies of the special invoice, a multi-copy "Goods Receipt Note" (format see Table 5—1) can be issued. The retention copy is kept by the business department, the goods receipt copy is used by the warehouse to inspect and record the goods inventory, the settlement copy is used by the finance department to settle payments, and the ledger copy, after being stamped with "Goods Received" by the warehouse, is forwarded to the finance department for accounting. P75