07 July 2010
One of my client purchases goods on credit from his suppliers. The goods are received 20 days after the date of invoice i.e.the goods are received in the subsequent month of invoice. Whether the entry for purchase is to be posted on the invoice date or goods receipt date?
07 July 2010
Invoice,if approved by appropriate authority as per internal control system of the organisation,can be booked irrespective of whether the good are delivered or not.
However many organisations the procurement department releases the invoice for booking in the accounts department only on delivery of goods.In such cases GRR or goods receipt notes are to be attached with the invoices as a compulsory requirement. Hence it is mainly the internal control measures adopted by the management which determines the booking/posting of invoice.
07 July 2010
Well Explained by Expert Sukanya. Generally, invoice is issued with the delivery of goods. However, if due to any reason, goods are delivered later , then it is possible that the purchase can be recorded on invoice date, which is earlier than the date of goods received, if it is certain that the delay in goods is as per genuine reasons or as per the normal circumstances prevailing in the industry or business environment. Regards
CAclubindia
