06 July 2021
Dear Sir We purchase a material from Mumbai and direct supplied to Tamilnadu but now tamilnadu vendor refused to make the payment in this month. He gives the payment in next month.
Now decided we will purchase the material from Mumbai party and take a warehouse on rent in Mumbai to store material after that when Tamilnadu vendor will done the payment we release the materiel to him.
We can not understand how to make billing process for this, please help
07 July 2021
If terms agreed with your customer is such that your sale transaction materializes only on receipt of payment from them. Then you can follow below process. Record purchase entry when goods are bought from the supplier in Mumbai. Then raise and share sales invoice instantly on the day when your customer in Tamil Nadu consents to release the payment because without invoice no customer would agree to pay. Besides to comply with e-invoice or e-way bill provisions of GST, invoice document is a pre-requisite without which dispatch of goods to customer location will not be possible.
CAclubindia
