The sales ledger and purchase ledger are two of the most important sub-ledgers in accounting. They share many similarities; however, their roles are opposite to each other. It is important to be familiar with the difference between these two ledgers.
Businesses use these ledgers to manage records, facilitate transparency, decision-making, and provide management with the required details when required. Sales and purchase ledgers are prepared for GST calculations. In this blog, we will learn about the fundamental differences between sales and purchase ledgers in detail.
What is a Sales Ledger in Tally?
A sales ledger is an accounting tool used to record and maintain transactional details of every product and service being sold by the company. It tracks the money received from products and services sold and the amount left to be paid by the business.
You can access the sales ledger by following the steps given below.
- Go to Gateway of Tally
- Click on the Accounts Info. You will find the “Ledgers” option in the drop-down menu.
- Now, you can create a ledger, i,e, a single ledger or multiple ledger.
- In the Name section on the top left corner of the screen, type “Sales” for sales lodger.
- Fill in all the necessary details and save the ledger.
What is Purchase Ledger in Tally?
A purchase ledger in a tally is used to record all the purchase transactions that take place in an organisation within a specified period.
You can access the purchase ledger by following the steps given below.
- Go to the Gateway of Tally.
- Click on the Accounts Info. You will find the “Ledgers” option in the drop-down menu.
- Now, you can create a ledger, i.e., a single ledger or multiple ledgers.
- In the Name section on the top left corner of the screen, type “Purchase” for sales lodger.
- Fill in all the necessary details and save the ledger.
Sales Ledger Vs. Purchase Ledger: Key Takeaways
- Sales and purchase ledger are two subparts of accounting vouchers used to record regular transactions in an organisation.
- The main difference between sales and purchases is that the sales ledger records credit sales transactions and the purchase ledger records credit purchase transactions.
- In the sales ledger, customer accounts are maintained to track the sales history and records. In the purchase ledger, supplier accounts are tracked and recorded.
What is the Significance of Sales and Purchase Ledger?
Sales and purchase ledgers both have distinctive purposes and yet they both consist of several similar attributes. Both of these ledgers organise invoices, track payment transactions, manage cash flow, and maintain accurate financial records in an organisation.
However, both sales ledgers and purchase ledgers share some notable differences. The sales ledger focuses on tracking payments owed by the customers who used their products or services. While purchase ledgers focus on tracking payments owed by the suppliers or vendors and ensuring timely reminders and payments.
The purchase ledger deals with suppliers and vendors. While sales ledgers deal with customers. Overall both ledgers are an integral part of business financial management. They help businesses track and maintain accurate financial records to maintain strong relationships with customers and suppliers.
There are many other differences which are briefly mentioned in the table below.
Difference between Sales and Purchase Ledger in Tally Prime
Sales and Purchase ledger in tally is used to measure daily accounting and transactions. Let us check the major differences between Sales and purchase ledger in tally prime.
| Sales Ledger | Purchase Ledger |
| A sales ledger is used to record all the credit transactions. | A purchase ledger is used to record all purchase transactions and deals of a company. |
| It deals with the sales records of a company. | It deals with purchase records of a company along with the accounts payable. |
| It is used to record credit sales, such as invoices issued by customers, payments received, and outstanding balances. | It is used to record credit purchases made by the company, including invoices from suppliers, outstanding balances, etc. |
| It maintains customer and debtor accounts. | It maintains suppliers, vendors, and creditor accounts. |
| The sales ledger monitors incoming cash flows in a business. | Purchase ledgers oversee the outgoing cash flows of a business. |
| The sales ledger is used to track amounts owed by customers and are due for reminders. | It tracks the amount the company owes to the suppliers. It helps manage liabilities and debts efficiently. |
| It increases the asset balance of a company. | It increases the liabilities of a company. |
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Sales ledger vs. Purchase ledger FAQs
Q1. What is a Sales ledger?
Ans: A sales ledger is a financial management method in tally that is used to record all credit sales and receivables of a company. It tracks all credit sales transactions.
Q2. What is a purchase ledger?
Ans: A purchase ledger is a financial tool in tally used to record all credit purchase transactions and deals in a company. It deals with the accounts payable to the company.
Q3. What is the difference between a sales ledger and a purchase ledger?
Ans: A sales voucher deals with tracking payments owed by customers, while a purchase ledger is used to track payments owed to suppliers and ensure timely payments.
Q4. What is the difference between a sales ledger and a receivables ledger?
Ans: The sales ledger maintains customer accounts or accounts receivable. It maintains a record of sales and whether or not the buyer paid the complete money. If there are some amounts still owed by the customers, then they must receive a timely reminder.
