Purchase of merchandise

accounting

The purchase of merchandise is a type of transaction within accounting that focuses on the supply that a company makes of different goods destined for subsequent commercialization.

Through the merchandise purchase processes, companies manage to obtain supplies for the development of their activity. This type of operation is very present in the business model of retail entrepreneurs, for example.

The way of transferring these transactions according to the accounting regulations is by indicating the amount of the purchases (or price of the transaction) at the time the goods are received by the suppliers. In the same way, those other goods pending receipt and which the company itself is responsible for transporting are also included.

Merchandise purchase example

Some examples, among many others, of these distinctions in subgroups according to the details of the transaction can be:

  • Buy discounted merchandise prompt payment included in invoice.
  • Purchase of goods with deferred payment.
  • Merchandise purchases with seller's account expenses paid by buyer.

There is a separation within the concept of purchasing merchandise according to the way in which the objective of the transaction is presented. Thus, merchandise as such can be differentiated from other related purchases according to their own composition.

Therefore, there are purchases of merchandise when what is acquired are elements destined for future commercialization without having to go through a change in their form.

The opposite happens with the purchase of raw materials, which are aimed at future transformation and manipulation.Alternatively, another type of supply of accessory elements is also possible in the production and commercialization of the company's activity.

Tags:  comparisons accounting passes 

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