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Purchase from online retailers

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anjali kumari

8 Points Posted on 21 February 2020

if a company has purchased from online retailer whose invoice is in the name of individual then still can it book it as expense in company's book?

Replies (3)

Quick Summary

This discussion explores whether a company can claim an expense if a purchase was made from an online retailer but the invoice was issued in an individual's name. The general consensus is that for a purchase to be a valid company expense, the invoice should be in the company's name, even if the payment originated from the company account. Proper invoice verification against purchase orders is crucial before payment processing.

Shrikant Toshniwal

TAX CONSULTANT

1109 Points Posted on 22 February 2020

did the purchase payment made from company account

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 22 February 2020

The purchase manager or the purchase officer should check the invoices for early settlement. If the materials are received in good condition as per the specification of the purchase order, the delivery note may be issued by the seller. Terms and prices are checked against the purchase order.

11. Passing the Invoice for Payment

If an invoice is correct in all respects, the purchase manager or the purchase officer will pass the invoice and send the same to accounts department and finance department for payment. The invoice may be impressed with the rubber stamp as Bill Passed for Payment.