Provisional Penalty Deduction during MIRO

[Former Member]

Dear Sir,

We have a following scenario :

We placed a PO to Vendor and on receipt of Material GR was done and in MIRO as per PO & GR , Vendor need to be Credited by Rs 2000 .

However due to Late Delivery in supply , we want to impose a provisional penalty of Rs 500 to the Vendor and due this provisional penalty Vendor should be given clean Credit of Rs 1500 and Rs 500 should be Credited into Vendor Suspense /Provision account .

Pl guide us as what steps we should perform to address this scenario .

Rgds

sonia agarwal

[former_member2342]

Dear

Goods worth Rs.2000/- received and due to delay in supply you would like to recover Rs.500/- from vendor and clearly this Rs.500/- is your income.

Now while doing MIRO select tab GL Account give the GL Account in the field of GL Account and under D/C indicator select Credit and put amount in amount in doc currency column.

Now after doing MIRO simulation the entry will be

Vendor A/c Credit Rs.1500

GR/IR A/c Debit Rs.2000

Income(LD Penalty) Credit Rs.500

Regards