Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is Purchases?
Purchases is the total amount of money spent on making purchases from suppliers for the purpose of reselling for a profit.
How to calculate Purchases
Say you own a small business selling desserts, and you want to purchase a new type of ice cream scoop tool costing $500, paper towels branded with your logo with a $700 value, and several sets of new plates costing $1,000. Your sum of purchases in this scenario would be $2,200.
Start tracking your data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your instantly.
How to visualize Purchases?
It's pretty straightforward to track your Purchases data. Your aim is to display the number, expressed as a dollar (or other currency) amount, perhaps segmented by expense type. A summary chart is a basic yet useful view for metrics like Purchases. Take a look at the example to get an idea of how to visualize your Purchases data:
Purchases visualization example
More about Purchases
Purchases refers to the total cost of buying from vendors and external suppliers. It differs from Cost of Goods Sold (COGS) or Cost of Sales by the fact that purchases are recorded at the time of purchasing inventory, whereas COGS is calculated at the time of selling inventory and factors in labor costs amongst other costs. Purchases purely calculate how much you paid to suppliers and vendors.