Debit Note against Purchase order

dhananjay

Hi All ,
I have one query regarding purchase order. The secnario is like this .
I have prepared purchase order on a perticular vendor for two items as follows :-

Items Qty Rate Amt.
A 10 50 500
B 15 60 900
Total 1400
Then I have to do GRN & then invoicing for the same order. When vendor send me invoice , the invoice is as follows :-

Items Qty Rate Amt
A 10 60 600
B 15 70 1050
Total 1650

There is difference in rate in purchase order & invoice . So i have to raise debit for the rate difference on that vendor. So my question is how I proceed in this situation because ,if i do invoicing as per actual invoice then this cost is update on my item card & it will reflect in my inventory valuation report. If i raised debit note for the rate difference then it will impact on the inventory stock position.
If i pass JV then it will be correct amount wise but inventory valuation is still differ.
So how I proceed in this situation ?
can you help me .

rgds
dhananjay

AdamRoue

Is it a requirement to process your invoice into the system prior to receiving the invoice. Practice in the UK is to have a GRN position until the invoice is received, then it is processed through at the amount that is on the invoice. You do not then have this scenario, although of course the purchasing department would have to investigate these discrepancies.

NaviDev

I think you can use charge. Just create another invoice, specify in the line a charge, retrieve the receipt then allocate the application of amount.

ssingla

NaviDev wrote:

I think you can use charge. Just create another invoice, specify in the line a charge, retrieve the receipt then allocate the application of amount.

I guess credit memo will be the option to be used.

dhananjay

Can we calculate sales tax on charge item in case of credit memo?


rgds
dhananjay

ssingla

Yes you can and I have replied to the same in your other post.

DenSter

dhananjay wrote:

<snip>Then I have to do GRN & then invoicing for the same order. When vendor send me invoice, <snip> There is difference in rate in purchase order & invoice . So i have to raise debit for the rate difference on that vendor.
<snip>
So my question is how I proceed in this situation <snip>

I think what will sovle the issues is a change in your business process:

• Post the receipts only when the actual goods come in, so that you can enter actual quantities received
• Post the invoice only when the actual invoice comes in, so you can enter actual quantities and amounts invoiced

If you don't change your business process, you will be posting credit notes to correct wrong values on invoices every day.

Dr_mjh

Hi Everybody,

I agree 100% with Denster however you may use the item charge but it is better to change the business process.

Best Regards