16 April 2010
Let us say vendor has wrongly billed for the goods sent by him (as shown by the statement sent by him). However the buying company has correctly accounted as such there would be difference in its account..should the auditor comment on this and ask the company to inform the vendor of such wrong billing at his end..
Actual billing - 1 Lac Billing as per vendor's statement - 90,000 Excess being shown as payable in company's a/c - 10,000 (it is being shown since more than 1 Yr)
16 April 2010
Please Note Error & Ommission exchangeable. You should get debit note from Vendor alongwith clarification on his letterhead.
As a good practic, we should accounted for invoices on correct calculation and there is any differences, these should be set of with Debit or credit notes as the case may be.
CAclubindia
