Definition of effective date in purchase order

LAWyersclubindia Home Forum Corporate Law Contracts Unanswered Reply Follow Thread  New Topic Definition of effective date in purchase order  less than a minute ago     0 Replies     Report Jayanta Bandyopadhyay We write one purchase order for One roll worth Rs.1 crore. Subsequently  ,change of order is issued to include some more high value items worth Rs.5 Crores. Supplier to give all supplies together. Effective date of purchase order will be : acknowledgement of last change of order as this is single supply. Not the first one.p Pl confirm whether my concept is correct one. As there is Late supply related penalty and it is single consolidated supply Rgds 

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Quick Summary
This discussion clarifies the effective date of a purchase order when amendments or change orders are issued. The consensus is that if a subsequent order revises the original, the date of the revised order becomes the effective date. If it's a supplementary, independent order, the effective date depends on the acceptance of each. The discussion also touches upon how software and accounting standards influence date management and potential modifications.

1) If the subsequent PO is a revised PO (i.e. revision of original PO), then date of revised order is the effective date of the PO. On the other hand, if a supplement PO is raised again, then both are independent documents.

2) For the supplier, if the original PO was accepted by him (but not the revised/subsequent PO), then effective date of PO would be the date of acceptance of original PO. But if the revised PO was accepted, then effective date would change to the date of acceptance of the revised PO.

It all depends upon your process. Revenue recognition standard works in its purview and first PO can be accepted, second po could also have been accepted. Or else, first po can be cancelled and reissued another new requisition can be acceptable. Dates, disclosure notes and editing them depends upon your software as well. This is because, if you close the period, all invoices cannot Ben modified. 

https://help.tallysolutions.com/article/Tally.ERP9/Tax_India/gst/gst_change_in_purchase_and_sale_price.htm

From the above you will find an example of how purchase amount can be increased against an invoice. 

Like this, software’s have different procedures and you can contact your manager for clarity is what I meant as well. 

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