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C. Purchase Verification with ledger & register.

What is Purchase and purchase tax Data Verification?

Purchase data verification means, we tally data of total purchase vs account posted vs Vat Purchase Register value. this we verify because total purchased value is properly we recorded or not in purchase register & account. this verification is purchase verification.

2. Purchase Data Flow.

Before Verifying data, we should know the data flows & correct entries.

as we know, we have two option for entry purchase which reflected in register. from here only purchase should recorded, for stockable use Inventory >> Receipt, For non-running assets and service use Account >> Purchase Posting (Manual).

1. Inventory >> Receipt.
2. Account >> Purchase Posting (Manual).
   

2.A. INV - Receipt Total Taxable and Tax VS Vat Purchase Register Taxable Tax

Matching before use, Vat Purchase Register Filter - Purchase Type - Inventory, because account - purchase posting manual also reflected here. There's not mismatch ever found receipt vs vat purchase register because the data stored parent total is vat purchase register & child details is receipt. one case we should know, receipt shown based on receipt (receive or stock in) date and vat purchase register shown based on Bill Date. that's why we always recommended for bill date and receipt shouldn't be cross month. even there's no chance to mismatch data between receipt vs register still check once.

3. Inventory Vs Account Stock In Data Flow & Cases

as we know, we separated a Subhead named 'inventory' or 'stock & inventory' or other name. this stock subhead always reserved for inventory module. we post data inventory to account by inventory group value to account seperate created for that group ledger. we create each group wise one ledger for stock name [Stock of Group NAme], for cost we name [Cost Of Group Name]. we know we have two ways to enter stock here, 1. Transaction entry (jv, rv or other manual voucher), 2. Purchase Journal Entry for non-inventory (service and non-operational goods) entry, still there's option opened for enter for stock. but, we shouldn't enter stock by above provided way. because additional entry will mismatch inventory purchase and ledger purchase. these entry will record stock in but, not record in actual physical stock. here's some of cases i have listed which affected stock mismatch between inventory purchase and account stock ledgers.

3.A.  Common Mismatch Cases For Purchase

Case 1: Remaining Purchase Post: as we know only purchase posting recorded in account ledger, i already briefed in the first step. we should clear remaining purchases before start to tally data.

Case 1: Manual Transaction Entry - Transaction entry stock booking will record stock in ledger but, not in inventory physical stock in inventory.

Case 3: Manual PJV entry : as we know we can book stock from Acc >> Purchase Posting (Manual). this way we can stock book but,not in inventory physical stock in inventory. this couse mismatch between inventory value vs account inventory value.

Case 4: Other wrong mapping post to the inventory ledger. let's say we have mapping feature for sales to account, hrm to account, cost to account. if we mapped food sales to stock ledger that entry we will recorded in stock ledger. this case is very rare, because we always see sales posting data. still if this may contribute to mismatch our data.

Case 5: We know, we create group wise ledger inside of subhead of inventory. we created ledger but, that wasn't inside of inventory. this is very rare, still this may contribute to mismatch inventory total purchase vs account account stock debit total.

Case 6: sometimes the inventory purchase recorded outside of stock ledger, because of half knowledge of system flow. like some places i founded service & fixed assets entered in inventory and posted to non-inventory ledger. not recommended. we can post but, we shouldn't because this is very hard to tally in the future.

 4. Purchase Data Verification Receipt purchase total Vs Inventory Stock in

we know purchase of receipt posted by purchase journal voucher. but, same voucher we use to post manual claimable non-operational goods purchases. so we should use Posting from filter for Ledger Reconcile Report for data verification.

1. Load the Sales Tax Register.

2. Open Ledger Reconcile Report in Accounts.

3. Apply filters:

   • Subhead: inventory or whatever name which used for stock.

   • Posting From: GR PURCHASE.

4. load data, compare both. value should match.
5. if not, just use filter posting from : GR PURCHASE, do not choose inventory subhead. this way you can find where the data is going. observe debit note because the purchase goods value recorded inside Assets debit. see debit entry excluding VAT and payment for vendro because we can payment by purchase voucher for saving valuable time.
   

this way you can compare, if still not match study above provided cases and study. still not match then you have study more deeply. there's no fixed way to compare now. because maybe here's technical error or other. try to verify diff way. best method to verify data is, verify in total, if not matched, break data two then, tally if not then, breake more this way you can find mismatch. but, you have knowledge about your expected data form which reports you can find.

For client explanation:
Use the Ledger Reconcile Report to show the flow of vouchers.
Demonstrate: “This voucher created this entry, and this is why the mismatch happened.”