Definition of effective date in purchase order

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JAYANTA KUMAR BANDYOPADHYAY

professional service

293 Points Posted on 01 May 2021

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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CMA Poornima Madhava

CMA

13117 Points Posted on 01 May 2021

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.

yasaswi gomes

My grammar is 💯 good I

7301 Points Posted on 01 May 2021

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.