What Are the Duties of a Purchase Ledger Clerk?
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Purchase ledger clerks help firms evaluate vendor shipment levels, operating inventory turnovers, working capital needs and customer management processes. They also help accounting and accounts payable departments prepare accurate vendor reports and timely financial statements.
They work with shipping, receiving and inventory warehouse managers. These employees may work for all organisations, but they usually are hired by manufacturing, wholesale and retail entities.
Resolve Ledger Queries
Ledger clerks manage and track vendor records. He analyses inventory purchases and receipt activities and provides periodic reports to management. She also assesses inventory turnover ratios and helps resolve ledger queries. Inventory turnover is a ratio that explains how fast inventories are transformed into finished products and sold to customers. Ledger queries might relate to questions about vendors, missing inventories or payment inaccuracies.
- Ledger clerks manage and track vendor records.
- She also assesses inventory turnover ratios and helps resolve ledger queries.
Scheduling Vendor Payments
Ledger clerks work with treasury and accounting departments to schedule vendor payment runs in accordance to vendors' credit terms. Vendors----also called suppliers----usually receive payments from customers after 30 or 60 days. Ledger clerks prepare, check and print accounts payable reports. These reports are sent to accounting for processing and payment. For instance, a clerk at Store ABC might prepare every week the vendor payment reports and send them to the accounting and treasury departments for payment scheduling.
- Ledger clerks work with treasury and accounting departments to schedule vendor payment runs in accordance to vendors' credit terms.
Reconciling Vendor-Customer Invoices
Purchase ledger clerks ensure accuracy and completeness of financial reporting processes by evaluating internal controls and policies in revenue and expense processes. Revenue processes relate to accounts receivable and customer payments; expense processes relate to accounts payable and vendor payments. These employees match purchase bills and shipment documents with customer invoices to verify that inventories are sold and shipped to customers. This type of verification allows clerks to detect missing inventories. For example, a clerk at a wholesale toy outlet might find that £3 million worth of goods were purchased, £3 million were sold and only £487,500 worth of inventories are in the warehouse----this means that £162,500 of goods are missing or unaccounted for.
- Purchase ledger clerks ensure accuracy and completeness of financial reporting processes by evaluating internal controls and policies in revenue and expense processes.
Matching Purchase Invoices
Ledger clerks code and match purchase invoices in computer systems to ensure financial reporting completeness. He assigns numbers to vendors and their invoices. This type of verification ensures that firms pay vendors only after receiving goods and merchandise bills.
Assist With Month-end Procedures
Ledger clerks assist accounting departments in reporting financial data monthly or quarterly. She helps accountants record and analyse inventory data, vendor payments, accounts payable balances and shipment activities. He also may advise forecast and budget analysts on inventory levels needed for operations and working capital structures.
Marquis Codjia is a New York-based freelance writer, investor and banker. He has authored articles since 2000, covering topics such as politics, technology and business. A certified public accountant and certified financial manager, Codjia received a Master of Business Administration from Rutgers University, majoring in investment analysis and financial management.