Procedure for audit of debit note
This query is : Resolved
20 November 2012
1)The company has lots of Debit notes.
2)What points should i consider While auditing it ?
2)What points should i consider While auditing it ?
Amol S Joglekar
(Expert)
20 November 2012
01. Why debit notes are required to be issued?
02. What is the main reason of rejection, if any?
03. Is it duly reconciled.
04. Is the debit note duly accepted by the party on whom the same is raised?
05. Linkages between the quantity and value.
06. Levies, taxes. cesses... reversal, if any.
02. What is the main reason of rejection, if any?
03. Is it duly reconciled.
04. Is the debit note duly accepted by the party on whom the same is raised?
05. Linkages between the quantity and value.
06. Levies, taxes. cesses... reversal, if any.
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20 November 2012
Example
1)Bill received from party 30000.
2)Payment made 28000.
3)Debit note voucher raise rs 2000 .
4)There is no supporting document attached to the voucher .
1)Bill received from party 30000.
2)Payment made 28000.
3)Debit note voucher raise rs 2000 .
4)There is no supporting document attached to the voucher .
Amol S Joglekar
(Expert)
20 November 2012
Not prudent policy. Ask for the confirmations from party or accounts reconciliation.
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20 November 2012
What should be the suitable policy that company should adopt in this case .
Amol S Joglekar
(Expert)
20 November 2012
What is the problem for LOT of debit notes? Trace out the reasons. Whether purchase person is going sideways or 'order booking' or the vendor is aggressive or ..... Ask the vendor to issue a correct BILL/invoice.
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Amol S Joglekar
(Expert)
22 November 2012
Thank you Kishore.
23 June 2014
Debit notes are generally raised for price differences. Suppose the Creditor has raised invoice for Rs 25000 but while making payment we negotiate at Rs 24000, so for the difference amount Rs 1000, the debit note will be raised. Every debit note should have supporting that against which invoice it has been raised. Hope it clarifies.
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