Who or what is a Supplier?

by Anonymous

Q: I don't understand the meaning of supplier... who is a supplier?

A supplier is a business or individual that supplies your business (you) with products or services that you use in your business.

For example, let's say you are a bakery. Some of your suppliers could be a flour milling company (supplying you with flour), the electricity company (supplies you electricity), a farming business (supplies you with various grains like wheat, corn, spelt, etc.). These are all suppliers.

Some accounting books, when they say "suppliers," specifically mean suppliers of raw materials (like grain, wood, raw minerals like copper, etc.). They are not referring to suppliers of services like electricity, water, repairs, etc. Just suppliers of products.

Comments for Who or what is a Supplier?

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by: DYRA

Actually I must present about the external users of accounting information. I must search for suppliers. Can someone explain who is the supplier and what it is used for? TQ

Journal Entries
by: Anonymous

For my accounting please answer...

On Sept. 30, 200A, X co. issued a 9-month note to a supplier amounting to 500,000, 6% interest...

A note is a document that says one person owes another. It is proof that someone owes you a certain amount of money.

When the note is issued the entry would be:
Debit Creditor 500,000
Credit Notes Payable 500,000

The supplier was probably owed money before, so he had a balance as a creditor already of $500,000. Now we are just converting the amount owed to a note which bears interest. We reverse creditors by debiting it and credit the new liability, the note.

Hope that makes sense!

Michael Celender

The meaning of supplier
by: Sillah Offend

Is the person who extends the service or goods from the producer or manufacturing point to the consumer or sales terminal point.

supplier defintion
by: mayanja geofrey

A supplier is a person or firm that avails or extends a service or a good from point of manufacturing to point of sales terminal.

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