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Invoice rate vs. purchase order rate

1575 views 3 replies

Ram Kumar Lakkoju

Internal Auditor

37 Points Posted on 17 February 2012

Hi Member!!

1) How far is it justified under Excise rules/ VAT rules to post an invoice, which is given at a rate higher than the rate agreed in purchase order, par with the rate mentioned in Purchase order without obtaing 'modified invoice' ??

2) Can we use Dr Note for difference value by posting invoice at higher rate.?? or is there any alternative?

with Best Regards

Replies (3)

Kolluru Krishna Murty

Partner

315 Points Posted on 17 February 2012

Since there is a claim from the supplier for higher amount there must be some informal agreement to pay the same.

So you have to book PO rate as liability for supplier and the differential value as Provisional Liabilty till it is confirmed by amendment to PO.

After words you have to obtain revised invoice(Tax) and regularise the whole issue.

kkm

Ram Kumar Lakkoju

Internal Auditor

37 Points Posted on 24 February 2012

Originally posted by : Kolluru Krishna Murty

Since there is a claim from the supplier for higher amount there must be some informal agreement to pay the same.

So you have to book PO rate as liability for supplier and the differential value as Provisional Liabilty till it is confirmed by amendment to PO.

After words you have to obtain revised invoice(Tax) and regularise the whole issue.

kkm

thaq u for u r rply.

Suppose if vendor has, by mistake, given invoice with such higher rate??

alok sundriyal

Junior Officer Accounts

61 Points Posted on 30 April 2012

Hi members, If a vendor charge more than P.O. rate in invoice what is the procedure to rectify the same, should we issue debit note or we should take a credit note from the vendor, Please resolve, thanks in advance