Recruitment charges

This query is : Resolved

Abhijeet Sharma (Querist)
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07 October 2013 1.When company should accrue for recruitment charges payable to consultant (at the time of offer letter or when person joins.

2. The Company has year end of 31st March and company has taken interview for one of the department during march and offer letter was given on April and employee joins on May. So in this case whether accrual for cosultancy charges required on 31 March.

Arun Biyani

Arun Biyani (Expert)
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07 October 2013 consultancy charges accrues only when the bill is raised by consultancy agency.. if it has raised bill, then accrue in accounts, and if not then let it be, unless the amount is huge.. If amount is huge then you have accrue it only when person joins, or if you have set out any other conditions with consultancy agency like you will pay only when person completes at least 3 months with you and all,, then accordingly..