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[former_member1195941]

hi all,

Please help me to provide the solution for below query asked by user:

we have a scenario as described below with an example :

1)      Works order issued to Vendor for a value of Rs. 1000/- ( scope includes supply and fixing)

2)      Due to some reasons Vendor is unable to supply the material, hence we offered to supply the material and debit to his account.

3)      P O is placed for an amount of Rs. 200/- ( debitable to Vendor’s account).

4)      In order to place the P O budget has been increased to Rs. 1200/- against the initial budget of Rs.1000/- against the item.

5)      Material is received, Vendor has executed the job and submitted a bill of Rs. 1000/-.

6)      During certification Rs. 200/- has been debited to his account and Rs.800/- has been certified.

7)      At this stage, we understand that Rs.200/- that has been debited to Vendors account needs to flow back , by which the total commitment / expenditure stands at Rs.1000/- I e approved budget.

Kindly suggest us way forward on this.

Thanks in advance.

[Former Member]

Hi,

The easy way should be give vendor debit note from Finance for Rs 200 instead of increasing original vlaue of WO. The bebit note of Rs 200 covers against the supply of material by client to vendor.

Finally this can adjusted in balance sheet against vendors payments. Check with your FI team.

Regards,

Sudhakar

Message was edited by: Sudhakar Pappu