Grocery and Supermarket Software · Guide
Supplier Credit, VAT Bills and Records for Nepali Grocery Stores
A Nepali grocery store sits in the middle of two kinds of credit. You buy from wholesalers and distributors on short terms, and you sell to local families who sometimes pay at the month end. Add purchase bills, VAT and festival buying, and it is easy to lose track. This article describes a clean way to keep the records. It is about record keeping, not tax or legal advice.
Keep a ledger for every supplier
For each supplier, whether a distributor of biscuits, an oil wholesaler or a vegetable trader, keep a running ledger with three columns: purchases, payments and balance. Each purchase should be linked to the supplier's bill number and date. When the supplier's salesperson visits and says you owe a certain amount, you can compare it to your own record in seconds. Differences usually come from a missed return or a bill entered twice, and are far easier to fix when the entries are fresh.
Know your due dates
Many suppliers give a number of days to pay. Record the due date with each bill and review a list of dues for the coming week. This protects your relationship and your credit. It also lets you plan cash: if three large payments fall in the week after Tihar, you know to hold cash rather than spend it on extra stock.
- Pay close to the due date, not weeks early, unless a cash discount is offered.
- Record cheque or bank transfer references against payments.
- Note returns and damaged goods as credit notes against the supplier.
Purchase bills and VAT
If you are VAT-registered, you will have purchase bills with VAT at 13% that you must keep and match against sales for your returns. Store each purchase bill in the system with the supplier's registration number, bill number, amount and VAT, and keep the paper copy filed in date order. How input VAT is claimed and when returns are due are matters set by the Inland Revenue Department, so ask your accountant for the rules and have the software produce the records they ask for. A clean purchase register at month end saves hours at filing time.
Mixed baskets: taxable and exempt goods
A grocery sells goods that may be treated differently for VAT. Instead of guessing at the counter, mark each item once in the system following your accountant's advice, and let the bill apply it. If the advice changes, change the setting in one place. This is a major source of errors when billing is manual.
Credit given to customers
Local credit, often called "khata", is common and builds loyalty, but it ties up money. Keep a ledger per customer with the date, items or bill amount and payments. Set a credit limit for each family and a typical payment period. Show the balance on screen at the time of billing so the cashier does not need to ask the owner.
At a regular interval, send a gentle reminder by SMS or WhatsApp to customers with overdue balances. Keep the message polite and factual, with the amount and the date. Most customers appreciate a clear statement more than an awkward conversation at the counter.
Festival buying and cash planning
Before Dashain and Tihar, stores buy more stock, often on extended credit. Look at last year's sales by item and category in Bikram Sambat dates to plan quantities. Then check your supplier dues and expected cash so you do not overbuy beyond what you can pay for. After the festival, review what is left and decide how to clear it.
Daily and monthly routine
| When | Task |
|---|---|
| Daily | Enter purchases received, close counter cash, note payments made |
| Weekly | Review supplier dues and overdue customers |
| Monthly | Compare ledgers with suppliers, print purchase and sales registers for the accountant |
| Fiscal year end | Stock count, write-offs and closing balances |
Separate your personal and shop money
In family stores, the drawer often funds household needs. It is understandable, but it makes it impossible to know the real profit. Decide a regular amount the owner draws, record it as a withdrawal and keep everything else in the business books. After a few months, you will see the true picture of cash and be able to plan purchases and repayments with confidence.
Keeping paper and digital records together
Even with software, paper bills must be kept for the period your accountant advises. File purchase bills by month, mark them with the entry number from the system and keep them in a safe dry place. If an inspector or your accountant asks for a bill, you should find it in minutes. Record the physical location in the notes if you keep boxes by year.
Next step
Pick your three largest suppliers and compare your ledger with theirs this month. Any difference shows where your process needs tightening. See how supplier and credit ledgers work in our grocery and supermarket software, or if you want deeper accounts alongside billing, look at accounting software for Nepal.
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