what are the things you can put in the purchases journal?

 

 

 what are the things you can put in the purchases journal? BIR philippines


ChatGPT said:
In the Philippines, for BIR compliance, the Purchases Journal (also referred to in bookkeeping as the Purchase Book or Book of Purchases) is primarily used to record all purchases of goods, services, and other expenditures that support your business operations. It is required for both VAT-registered and non-VAT businesses.

✅ What You Can Include in the Purchases Journal (BIR-compliant):
1. Goods for Resale or Manufacturing
Merchandise bought for resale

Raw materials and supplies used in production

2. Services (if related to operations)
Professional fees (accounting, legal, IT)

Marketing or advertising services

Repairs and maintenance services

Freight and delivery charges

3. Capital Goods / Fixed Assets
Equipment and machinery

Furniture and fixtures

Computers, printers, etc.

If you're VAT-registered, capital goods are monitored separately under BIR Form 2550M/Q.

4. Office and Operating Supplies
Paper, ink, cleaning materials

Small tools and consumables

5. Utilities and Other Operational Expenses
Electricity

Water

Internet and telephone

6. Rent
Office or store rent

Yes, rent can be included in the purchases journal if it's a record of all business-related purchases including services and operating expenses (not just merchandise).

7. Other Allowable Business Expenses
Insurance

Licenses and permits

Delivery and courier services

🔍 BIR Requirements (Key Columns in Purchases Journal):
For VAT-registered businesses, the BIR requires the Purchases Journal to include the following fields:

| Date | Supplier Name | TIN | Address | Description | OR/Invoice No. | Amount (Gross) | VAT Amount | Net of VAT | Withholding Tax (if any) |

❗ REMINDER:
Always ask for a VAT Official Receipt (for services) or Sales Invoice (for goods).

Attach supporting documents like receipts/invoices for each entry.

Ensure correct classification (capital goods, services, etc.) for proper BIR reporting.

✅ Summary:
Yes, the BIR-compliant Purchases Journal can include not just inventory, but also services, rent, utilities, capital goods, and other allowable business expenses — as long as they are business-related and properly supported by valid receipts or invoices.