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Purchase entry

RAVIKUMAR (STUDENT) (107 Points)

06 January 2013

HI FRNDS

I AM NEW TO THE FIELD OF ACCOUNTS AND FINANCE, JUST WANTED TO KNOW WHEN A PURCHASE ENTRY IS RECORDED , WHEN THE GOODS R DELIVERED OR WHEN THE INVOICE IS RECEIVED ...THANK U.

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3 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 06 January 2013

You will have to see the nature of the transaction.

By this what I mean is you will have understand when the risk moves on to the buyer. Is it when the goods are received or is when you buy the goods. based on this entries can be passed.

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Pijush Roy (ERP SAP Functional Tester) (281 Points)
Replied 06 January 2013

There are no prob when invoice and good receive at a time. Prob aries when good and invoice receive on different date. Purchase entry will passed after receive physical good and goods are verified. In case sale through transfer of document, invoice receive date will treated as purchase date.

jafer (studies) (194 Points)
Replied 07 January 2013

Hi,

In everycompany there are two scenarios. One is 1) delivery note and 2) invoice.

Generally, goods will be received along with delivery challan and after two three days Invoices will be prepared. Here, Date of invoice will be taken. Whatever be the case invoice date is the Purchase date. Material reciept date is not purchase it is just a date given in the delivery note, which basically, issued to make sure that the goods of prescribed quantity, quality are received as agreed. If not the material will rejected and when the invoice is prepared the actual material accepted by the client only will be mentioned.

regards,

Jafer