Purchases Records

You are required to keep records and be able to explain ALL purchase transactions. The records for purchases include:

(a) Receipts obtained
(b) Invoices received
(c) Purchase record book

Receipts Obtained

Whether you pay by cash or cheque, you should ask for a receipt when making purchases. Receipts will help you to support or justify payments made if disputes arise later.

The details that should be shown on a receipt are:

(a) Date
(b) Name of supplier or service provider
(c) Amount paid
(d) Description of goods or services being paid for.

A receipt issued by a cash register would generally be sufficient, but it may not always describe the goods or services that have been paid for. If it doesn’t contain sufficient detail, an additional notation should be recorded on the receipt.

Invoices Received

Invoices usually contain more information than a receipt and provide additional evidence to support the payment or the purchase. All invoices received should be retained.

Purchase Record Book

You are required to record your purchases in the following format:

For GST registered businesses, the records should preferably be prepared in Microsoft Excel format.