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Purchase order

This query is : Resolved 
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(Querist)
23 January 2017 What is the difference between Purchase Order raised for Material purchase and Asset purchase?
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CA Amrita Chattopadhyay

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CA Amrita Chattopadhyay (Expert)
25 January 2017 There is no difference in the Purchase order raised for material purchase and asset purchase. The difference is in the accounting treatment in the books. Material purchase is considered as revenue nature and asset purchase is considered as capital nature.
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