A company usually mention its employee name/service name in banking remarks while making payment to vendors. Eg. If Mr. Rakesh an employee of company is looking after CCTV installation, While making payment to CCTV Dealer, company add remarks like CCTV Installation-Rakesh Kumar.
Does it have any direct /indirect impact on Employee ?
Not good practice. Better have code nos. of employees and add remark with these codes.
Understood. Fact is query is on behalf of employee. (who don't have control over company accounting practice. Hence could it create trouble for employee if payment made from company account to vendors account mentioning employee name as remarks.
Though query may arise due to employees name, but employee can prove his/her innocence as the remark is from company and not from employees side.
Secondly union can suggest management to change such practice.
Understood & Agreed thanks for valuable suggestion. Last question regarding this..
Is it advisable CCTV Vendor refund payment to company with remarks/employee name. And company make cctv vendor another/fresh payment without remarks/employee name. ?
No need. May be that the vendor might not agree. The practice may be followed for future transactions.
Karia Overseas
Ahmedabad
CA
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CAclubindia
