Purchase Orders and Bookkeeping

[Subways81]

Hi All,

Quick Q about purchase orders and bookkeeping. (I do my own bookkeeping with FNB IA)

I have created all my usual suppliers and I create purchase orders when I order from them, what I would like to know is should I be creating PO's for small off hand purchases as well, say lunch at a restaurant with clients? Or stationary from waltons?

At the moment I just capture those expenditures as stationary or meals and entertainment, I dont create PO's.

Cheers,
Subs

 

[rrh]

Personally I wouldn't bother ... the best person to ask is whoever submits your tax returns / auditor / similar

 

[Arthur]

POs are not required by SARS, only valid (tax) invoices and proofs of payment.

For a small business I wouldn't bother with POs for regular expenses, supplies and services. Just make sure you allocate the expenses correctly and keep the VAT straight.

POs are useful for major items, and of course for orders from suppliers of items that you resell. It's evidence of contract, rather than an accounting requirement.

 

[mass09]

Just process the small daily items through the cashbook as a cash transaction. Classify it correctly.

Remember, don't claim input VAT on anything in the entertainment account.

 

[koeksGHT]

Office Investments or Petty Cash

What we use

 

[Subways81]

Awesome, thanks for all the input!!