25 December 2019
The credit note may be issued by the supplier for short dispatch, rejection of material by the supplier, rate difference between PO and invoice etc.
If credit note is received from the supplier, firstly we have to check whether we have accounted the purchase from the supplier as per supplier invoice or accounted as per actual receipt and PO. If we have accounted as per supplier invoice, we have to account Credit note of the supplier. if we have accounted as per actual receipt and PO , then we need not account the CN of the supplier since the effect of CN has already reflected in books.
25 December 2019
Sir, please explain treatment in GST , in my case my supplier has received credit note from supplier for incentives , kindly give treatment in GST & also accounting point of view.
CAclubindia
