Paying authority different than ordering authority
This query is : Resolved
08 May 2022
Need to ask about accounting entry for following situation.
A- Company -1
M- Manufacturer
B- Company 2
"A" places order on "M" for supply of goods. A are not able to arrange funds so they tie up with "B".
"B" releases funds to "M"
"A" asks goods to be supplied in their name with their name appearing on invoice against their PO.
How to adjust this entry into books ?
Are there any GST or IT implications ?
A- Company -1
M- Manufacturer
B- Company 2
"A" places order on "M" for supply of goods. A are not able to arrange funds so they tie up with "B".
"B" releases funds to "M"
"A" asks goods to be supplied in their name with their name appearing on invoice against their PO.
How to adjust this entry into books ?
Are there any GST or IT implications ?
09 May 2022
No GST or IT implications as order and invoice in the name of A.
Instead of bank credit entry credit B as loan received.
Instead of bank credit entry credit B as loan received.
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