C. Purchase Verification with Ledger & Register

C.

1. Purchase Verification with ledger & register.

What is Purchase and purchasePurchase taxTax Data Verification?

Purchase data verification means,means wechecking tallywhether data ofthe total purchase vsvalue accountand postedtax vsamounts Vatrecorded in the Purchase Register value.and thisAccounts wematch verifycorrectly.
This becauseprocess ensures that all purchases are properly recorded in both systems.

In short, purchase verification confirms:

• The total purchasedpurchase value is properlythe we recorded or notsame in purchaseAccounts registerand &the account.VAT thisPurchase verificationRegister.

  is
purchase
• verification.

  The tax amounts (VAT on purchase) are also properly matched in both.

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2. Purchase Data Flow.Flow

Before Verifying data,verifying, we shouldneed knowto theunderstand how purchase data flows &in correctthe entries.

system.

asPurchases wecan know,be werecorded havein two optionways:

for

entry
1. purchase

   Inventory which→ reflectedReceipt

   in
   register.
   • from here only purchase should recorded, for

     For stockable useitems Inventory(food, >>goods, Receipt,consumables).

     For
   non-running
   assets
and
2. service

   Accounts use Account >>→ Purchase Posting (Manual)

   • For services and non-running assets (e.g., consultancy, equipment, maintenance).

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

👉 These are the only correct entry points that reflect in the VAT Purchase Register.

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2.A. INVInventory -Receipts Receiptvs TotalVAT TaxablePurchase andRegister

Tax

VS
• Vat

  VAT Purchase Register Taxable(Inventory Taxtype) always matches the Inventory Receipt total.

• MatchingWhy? beforeBecause 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 purchasethe register becausetakes the data stored parent totaltotals isand vatreceipts purchasestore register & child details.

  is
receipt.

one

⚠️ caseCase weto shouldnote:

know,

receipt
• shown

  Receipt shows data based on receiptReceipt (receiveDate, orwhile stockVAT in)Register dateshows and vat purchase register showndata based on Bill Date.Date.

  that'

• That’s why weBill Date and Receipt Date should not cross months.

👉 Generally, no mismatches occur here, but it’s always recommended for bill date and receipt shouldn't be cross month. even there's no chancegood to mismatchcheck.

data between receipt vs register still check once.

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3. Inventory Vsvs Account Stock Stock-In Data Flow & Cases

asWe we know, we separatedcreate a Stock Subhead namedunder 'inventory'Accounts or(e.g., 'stockInventory, Stock & inventory'Inventory).
System orposts otherdata name.from thisInventory stockModule subheadto alwaysthese reservedledgers.

for

For each inventory module.group:

we

post
• data

  Stock inventoryValue toLedger: 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],Name

  for
cost
• we name [

  Cost OfLedger: Cost of Group Name].Name

  we
know

we

⚠️ haveImportant:
Stock twoshould waysonly tobe enterentered stockvia here,Inventory 1.→ TransactionReceipt.
Other entrymethods (jv, rv or other manual voucher),JVs, 2.RVs, PurchaseManual JournalPJVs, Entryetc.) forcreate 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.mismatches because additionalthey entryupdate willledgers mismatch inventory purchase and ledger purchase. these entry will record stock in but,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.

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3.A. Common Mismatch Cases Forfor PurchasePurchases

• Case 1: Remaining Purchase Post:Postings
  Purchases asnot weyet know only purchase posting recordedposted in account ledger, i already briefed in the first step. we shouldAccounts.
  Always clear remainingpending purchasespostings before startverification.
to tally data.
• Case 1:2: Manual Transaction Entry - Transaction entry(JV/RV)
  Updates stock booking will record stock in ledger but,but not in inventory physical stockstock.
in inventory.
• Case 3: Manual PJV entryEntry
  Posts : as we know we can book stock from Acc >> Purchase Posting (Manual). this way we can stock book but,notpurchase in inventoryledger physicalbut stock in inventory. this couse mismatch betweenbypasses inventory valuemodule.
vs account inventory value.
• Case 4: OtherWrong wrongMapping
  Example: mapping post to the inventory ledger. let's say we have mapping feature forFood sales to account, hrm to account, cost to account. if weaccidentally mapped food sales to stock ledgerledger.
  Rare, thatbut entrypossible.
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: WeInventory know,Ledger weCreated createOutside groupInventory wiseSubhead
  If ledgerwrongly insidegrouped, oftotals subhead of inventory. we created ledger but, that wasn'won’t insidetally.
of inventory. this is very rare, still this may contribute to mismatch inventory total purchase vs account account stock debit total.
• Case 6: sometimesNon-inventory theitems booked inside inventory
  Example: purchase recorded outside of stock ledger, because of half knowledge of system flow. like some places i founded service & Service/fixed assets entered in inventory and posted toas non-inventoryinventory.
  ❌ ledger.Not notrecommended recommended. we can post but, we shouldn't because this is→ very hard to tally inlater.
the

future.

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4. 4.Inventory Purchase Data Verification (Receipt purchasevs total Vs Inventory Stock in

Ledger)

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.Steps:

1. Load theReceipt Sales Tax Register.report.

2. Open Ledger Reconcile Report in Accounts.

3. Apply filters:Filters:

   • Subhead: inventoryInventory (or whateverstock namesubhead which used for stock.name).

   • Posting From: GR PURCHASE.

4. load data,

   Compare totals.

⚠️ If mismatch:

• • Remove Subhead filter → recheck. Maybe stock recorded in non-inventory ledger? (Important).

  • Ignore VAT and vendor payments.

  • If still not matched → break totals into smaller parts and tally step by step.

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5. Receipt Tax vs Account Ledger Tax

VAT on purchases is recorded in VAT on Purchase Ledger (under Current Assets).

Steps:

1. Open Ledger Reconcile Report.

2. Select VAT Ledger.

3. Posting From: GR PURCHASE.

4. Compare with Purchase Register VAT values.

⚠️ If mismatch:

• • Verify bill-wise entries using Excel tools (e.g., SUMIF).

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6. Account Purchase Journal Voucher (Manual PJV) vs Account Ledger

• Account Purchases directly record in Ledger.

• Generally, no mismatch.

• Still, auditors compare both.VAT valuePurchase shouldRegister match.vs Ledger.

Steps:

1. 1. Load VAT Purchase Register (Purchase Type: Account).

   2. if not,

      Open justLedger useReconcile filterReport.

      posting
   from
   3. :

      Filters:

      GR
      PURCHASE,
      • do

        Posting notFrom: chooseAC inventoryPURCHASE.

        subhead.
      this
      • way

        Only check Assets & Expense Ledgers (exclude VAT Receivable).

   4. Compare values.

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7. Account PJV VAT vs Account Ledger VAT

• VAT is auto-posted by the system.

Steps:

1. Load VAT Purchase Register (Purchase Type: Account).

2. Open Ledger Reconcile Report.

3. Filters:

   • Posting From: AC PURCHASE.

   • Ledger: VAT on Purchase / VAT Receivable.

4. Compare both.

⚠️ Rare Case:

• • User manually selects VAT ledger instead of system auto-posting.

  • Hard to detect, but possible cause of mismatch.

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8. Final Notes

• Always verify in total first.

• If mismatch → break data into smaller groups until the issue is found.

• Understand the expected data source (Register vs Ledger).

• Use Ledger Reconcile Report for explaining to clients:

  • Show which voucher created which entry.

  • Point out the cause of mismatch.

✅ By following these steps, you can findconfidently whereverify thePurchase dataData is& going.Taxes, observeidentify debit note because the purchase goods value recorded inside Assets debit. see debit entry excluding VATmismatches, and paymentexplain forthem 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 wayclearly 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.clients.

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ForDocumented clientBy explanation:
Use- theSundar Ledger Reconcile Report to show the flow of vouchers.
Demonstrate: “This voucher created this entry, and this is why the mismatch happened.”Mishra.