2 min read
Definition
The purchase ledger is the accounting record of all a business's purchases made on credit and the payments it makes to suppliers — the master list of who you owe what. It is the source of your accounts-payable and creditor-days figures.
In plain terms
Every supplier invoice and payment flows through the purchase ledger, so keeping it current lets you manage payments deliberately — taking full terms without paying late, and never missing a due date.
Why it matters
A well-run purchase ledger underpins good supplier-payment management. See accounts payable and sales ledger.
Related reading
Sales ledger
The sales ledger is the accounting record of all a business's sales made on credit and the payments received…
Read →
Accounts payable
Accounts payable is what you owe suppliers for credit purchases — a current liability and a key lever on…
Read →
Days payable outstanding (DPO)
Days payable outstanding (DPO) is the average number of days a business takes to pay its suppliers.
Read →
Hire purchase
Hire purchase is an asset finance agreement where a business pays for equipment in instalments and takes…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.