Keep purchases separate from supplier settlements.
Record purchases, supplier references, quantities and payment balances without counting a later settlement as a new purchase.
Capture the purchase reference
Record date, supplier, invoice/reference number, items, units, quantities and amounts. Compare goods received with the supplier document. Keep the original invoice for the records and reviews your business requires.
Track what remains payable
Record the amount paid at purchase and the amount still due. When paying later, associate the settlement with the same supplier and relevant invoice. Avoid creating a duplicate purchase to represent the payment.
Reconcile with the supplier
Compare your opening balance, purchases, payments, returns and adjustments with the supplier statement. Investigate unmatched references. Different invoice dates and payment dates may explain a temporary difference.
Keep tax review separate
A purchase entry is not proof that tax credit is available or that a supplier document meets every requirement. Retain source records and seek an appropriate tax review where needed.
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