Purchase invoice dated 28/03/2014 , goods received on 03/04/2014, While recording this transaction in day book, when is to be accounted for?
For audit and vat return purposes which date is relevent?
8 Replies
Tejas bhagat
(CA Finalist)
(201 Points)
Replied 23 November 2014
When the situation is viceversa ie invoice is dated next year....in such cases
In govt org they record these purchases by way of credit note.. As there is significant delay in receipt of invoice so they book purchases by way of credit note and subsequently reverse the entry and pass purchase entry on receipt of invoice.
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 23 November 2014
i think u can do it on 03.04.2014 also... as the invoice recd late... and u wil enter it in the books it as and when it wil b received....
CA Mitesh N Kothari
(9821662799)
(391 Points)
Replied 24 November 2014
If Delivery of goods is at factory gate or godown of seller than it should be conisder under purchase on 28/03/2014.
If Delivery of goods is at your factory gate or godown than it should be consider as purchase on 03/04/2014.
Its all depend upon ownership is transfered or not.
sanjeev kumar goel
(Advocate)
(260 Points)
Replied 24 November 2014
Dear Chaitanya,
You have mentioned the purchase invoice date and date of goods received as 28/03/2014 and 03/04/2014 respectively but you did not mention that on which basis you are entering your inventories in your books. If you are entering on receipt basis then the relevant date of entry is 03/04/2014 and if you are posting on the basis of purchase order then you have to enter it in your account books on dated 28/03/2014. It depends upon the method of your accounting whether on order of purchase basis or on goods receipt basis. If you enter on purchase order basis then the goods purchased will be shown as goods in transit and will not be included in your closing stock inventory. Hope you understand now.
CA Mitesh N Kothari
(9821662799)
(391 Points)
Replied 25 November 2014
Dear Mr Sanjeev,
Receipt basis and purchase order are irrelevant.
only thing you have to look at is whether ownership with risk has been passed on to buyer or not.
sanjeev kumar goel
(Advocate)
(260 Points)
Replied 25 November 2014
Dear Mr Mitesh,
You are right but the ownership will only be transfered either on receipt of goods or at the time of making purchase invoice against the purchase order of the buyer if he is giving delivery at his counter. It depends upon the buyer that what is the mode of his purchase that is where he is taking the delivery of goods and in this case he is getting the delivery of goods after five days of purchase invoice so naturally he is taking delivery at his factory or godown. Now it depends upon the method of his accounting that whether in the past he has entered the inventories from the date of purchase invoice basis or from the date of receipt of the goods. He has to follow uniform method.
Dinesh
(M.Com)
(21 Points)
Replied 03 December 2014
Bill Bokking is 28/03/2014 in head material in trasit . but not rec. input vat claim , if exices input claim same year quartly. vat claim rec. is next year.....
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