Material rejection

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accountant
454 Points Joined July 2013
we have purchased automotive parts from the supplier.

but some parts received defective & Same scraps our end.

in that case who will provide a Credit/Debit Note of defective parts.
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On 26 September 2024 at 18:13 Report
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Master in Accounts & high court Advocate
9434 Points Joined December 2011

In this scenario, where you've received defective parts from a supplier and they are scrap at your end, the supplier should issue a credit note for the defective parts. Here's why: - The supplier is responsible for providing goods that meet the agreed-upon specifications and quality standards. - Since the parts received are defective and unusable (scrap), the supplier has failed to meet their obligations. - To correct this, the supplier should issue a credit note to account for the defective parts, which will adjust the original invoice value. As the buyer, you can request the supplier to issue a credit note for the defective parts. If the supplier agrees, they will issue a credit note, and you can adjust your accounts accordingly. If the supplier doesn't agree, you may need to negotiate or seek legal advice to resolve the issue. Remember to keep records of the defective parts, communication with the supplier, and any agreements or credit notes issued to support your accounts and potential claims.

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On 27 September 2024 at 14:08


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