Breakage Claim - adjustment in books

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This query is : Resolved

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This discussion addresses how to account for damaged goods received from a supplier where the supplier has issued a credit but no formal credit note or GST adjustment. The recommended approach is to pass a journal entry to reduce the purchase account and debit the supplier, while also considering the reversal of Input Tax Credit (ITC) on the broken items.

Nisha Kathuria

Nisha Kathuria (Querist)
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29 May 2023 Dear Sir,

Some goods break on the way and its Value Rs.19400/- supplier credit Rs.19400/- to our account but no GST and no show same in GSTR-1 even no document send to us.Breakage Goods available in our store supplier have not pick up till date so in this case i have to reduce my purchase. Please suggest below entry in books of account is correct or wrong
Dr. ABC Supplier Rs.19400/-
Cr. Purchase account Rs.19400/- ( entry pass through Journal entry)