I have a client where One party transfer payment on second party account and second party generate invoice to another party. I is partenetly to mention here that. The owner of First party and third party is same but, First party is a firm I mean Partnerahip firm and Third party is sole prop. Whereas the Second Party is a creditor of third party...
kindly suggest me how I can do the entry of such transaction
It is complex and my solution is simple. Delivery address can be the one who places the order, debtor will be the one who receives the invoice. The problem is the auditing procedure where I am not familiar with the following: Can we accept payments from a different bank account from invoice company? Guess not because company is registered in our software with GST number and bank account. So you have to request them to make the payment from the same company who is receiving your invoice. Or else check the Invoicing act, find out if your allowed to mention two company names on an invoice and proceed with the payments.
Others please express your opinions here.
CAclubindia
