Sales cuf off
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 October 2011
how to take sales cut off as @ 31st march
for every year please help any one
for every year please help any one
14 October 2011
You can consider a sale only if the risks and rewards pertaining to the goods sold have been transferred. So it also depends on the delivery point of goods.
If the delivery point is factory gate then you can consider sales immediately when the goods leave factory. So if you are auditing see that for cut off, that goods sold on 31st March have actually been dispatched from factory gate by 31st March. If only sales invoice is prepared and goods are still in premises of seller we cannot that the risks and rewards have been transferred. So reverse sales in such cases.
But if the delivery point is customers godown, then you can consider sales only when the goods actually reach customers godown.(In such cases consider sales upto 28.03.2011 as sales considering 3 days as delivery time on account of road transport. For all other dispatches from 29.03.2011 to 31.03.2011 you can show as stock in transit and not sales).
So you have to maintain sales cut off according to the sales agreement(delivery point) with customers.
If the delivery point is factory gate then you can consider sales immediately when the goods leave factory. So if you are auditing see that for cut off, that goods sold on 31st March have actually been dispatched from factory gate by 31st March. If only sales invoice is prepared and goods are still in premises of seller we cannot that the risks and rewards have been transferred. So reverse sales in such cases.
But if the delivery point is customers godown, then you can consider sales only when the goods actually reach customers godown.(In such cases consider sales upto 28.03.2011 as sales considering 3 days as delivery time on account of road transport. For all other dispatches from 29.03.2011 to 31.03.2011 you can show as stock in transit and not sales).
So you have to maintain sales cut off according to the sales agreement(delivery point) with customers.
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 October 2011
I Glad to tell i understood how to do sales cut off as @ 31st march ,thanks sumit.
14 October 2011
You are welcome dear !
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