I do e-commerce business with flipkart, how should i account the invoice in my books based on the invoice date or order date.
Thanks
Mukesh
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Sales
Replies (7)
account them at the time of delivery ie invoice date
when the goods deliver to customer.
According to AS9. revenue for sale of goods should be recorded when "significant risks and rewards are transferred to the buyer"
in ur case, the risk lies with u till the goods reaches the doorsteps of the buyer...so delivery or invoice date might be proper
It should be recorded at invoice date, not on order date
at the time of goods deliver and received payment against above order. but in this case its not possible hence you can made invoice when you generated means invoice date
The answer to the question is on the basis of provision contained in AS 9. As per AS 9 sales is recorded when all risk and rewards are transfered which means when invoice is made. however as per your previous experinces of returns you should also make provision for retuns.
In these businesses seller recive the payment after 15 to 20 days of delivery of goods but As per AS 9 Revenue will be book when risk and reward tranfered to buyer . Therfore, in your case revenue will be book on the date in which goods divered to customer.
Regards
CA ANKIT SACHDEVA
ACA, B.COM
ankit.k.sachdeva @ gmail.com
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