Was hoping I could get some direction on this. I need to do a Sales & Purchase ledger reconciliation and dont have a clue how to go about it. Ive just started a course with a view to setting up my own business, so would welcome all the help possible.
Basically to do a sales or purchase ledger reconciliation you need to do the following:
-Obtain your opening debtor/creditor figure for the beginning of a period (if applicable) i.e. the amount of credit sales and credit purchases brought forward
-Add to this figure all credit sales and credit purchases in the period (don't include cash sales or cash purchases)
-Subtract amounts paid to creditors (suppliers) and amounts received from debtors (customers) in the period
-This will leave you will a closing balance for both sales and purchases
Note: the closing balance should agree to all sales invoices and purchase invoices outstanding/not paid or received at the period end (just add them up)
If you're going to use an accounting software package such as sage or quickbooks, the reconciliation procedure can be automated.
Best of luck with your course and business. Any more questions feel free to ask.
If you're using Sage it's just a case of printing off the relevent Aged Debtors and Creditors reports, which will give you the closing balance on the sales ledger and purchase ledger. This is assuming you have posted all relevant invoices and payments/receipts in the month.
hi, with regard the sales and purchase reconciliation, how would i set this out manually, i can do the bank reconciliations but not sure how to set out the sales and purchase ledger reconciliation.
hi, could you tell me how to set out a sales and purchase ledger reconciliation, i am able to set out the bank reconciliation template but have never done sales and purchase ledger. thank you
