Accrual Vs. Accounting

You can just ask the factory to scan and mail the bills as and when they are received. It can be accounted on accrual in the admin office!

Thanks Sowmya for your inputs..:-) Point Taken... Do you have any other ideas relating to this issue??

what exactly is the problem owing to this delay of one or two months?? Returns are anyway to be submitted only by Sep 30th .... So March entries would be filed at the maximum by May.... so whats the problem?

@ Dhawal: For Eg: June month's bills are received in august. But the client would ve filed their E Tds Return for quarter 1 on or before 15th July... So in august if they receive june's bill and account in june's date then the liability which is shown in the e tds return will not match with their actual liability in books. This is basically the problem.. If they stop making back dated entries and book in august when the bill is received, then the basic concept of accrual principle is not followed!!! So wats the solution???

thanks for the explanation. Very apt.

as suggested above scanning and sending is an option. But if the volume is to high it ll be a tedious job. Which ERP is the client using? they can use tally multi user interface which is linked through a server and hence a person has to be deployed in the factory for data entry and the same can be accessed by people in admin office....

please feel free to put forth ur comment...

@ Dhawal: They are using Tally ERP 9 Software.... As you rightly pointed out they were already earlier using the multi user interface through a Common Server but there was frequent server problems & other problems which resulted in the frequent disruptions in the accounting software..... I feel as you said they ve to relook that multi user interface option or scan and send the bill copies..... 

Incase if there are server problems .. they can use a seperate tally in the factory .. load the entries there and then once in a month or any period as convenient to them can transfer the tally data through USB drive in a pen drive and load the same in the admin office .. this seems to be the easiest of all the options ..... 

please feel free to put forth ur comment on the above ... 

Ya ill put forth these suggestions to the management & let them choose the appropriate method...... Thanks Friends for helping me out...:-)

Can we account the scanned bill instead of original bill. Will it be legally accepted. Is there any audit problem will arise?

@ Raju: In the above case there is a delay in accounting... Thats why ppl suggested to the factory to forward the duplicate bill first for accounting in the HO.... but the staff in the HO must folllow up & get the original bill from the factory as Original bill is the sufficient evidence for audit purpose.......