Purchase Ledger
Also known as: Bought ledger, Accounts payable ledger
A purchase ledger is the accounting record of all invoices a business owes to and has paid its suppliers.
The purchase ledger, also called the bought ledger, tracks every supplier invoice — what is outstanding, what has been paid and when payment is due. It underpins accounts payable, feeds the creditors figure in the accounts and gives a clear view of upcoming payment obligations.
A well-kept purchase ledger, tied to purchase orders and goods received notes through three-way matching, prevents duplicate or erroneous payments and supports cash-flow planning. Procurement and finance systems usually update it automatically as invoices are approved and paid, keeping records accurate and audit-ready.
Frequently asked questions
- What is a purchase ledger?
- A purchase ledger is the accounting record of all supplier invoices a business owes and has paid, underpinning accounts payable and showing upcoming payment obligations.
- What is the difference between the purchase ledger and accounts payable?
- The purchase ledger is the detailed record of individual supplier invoices, while accounts payable is the overall total the business owes suppliers, drawn from that ledger.
Related terms
Accounts Payable (AP)
Accounts payable (AP) is the money an organisation owes its suppliers for goods and services received but not yet paid for, and the team that manages those payments.
Read definitionInvoice
An invoice is a document a supplier issues to a buyer requesting payment for goods or services delivered, listing what is owed and the terms.
Read definitionThree-Way Matching
Three-way matching is a control that checks the purchase order, goods received note and supplier invoice agree before an invoice is paid.
Read definitionExplore related across the knowledge graph
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