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VERIFICATION OF VENDOR INVOICES
- The Materials Management Document contains detailed information on the invoice verification procedure.
The following entry will be made after the vendor bill is received: - Vendor Account CR; GR/IR Account DR; Freight Clearing Account DR; Cenvat Clearing Account DR
Verification of Invoice for Foreign Vendor
The following entry will be made after the vendor bill is received:
- Account Type: GR/IR DR
- Supplier Account CR
Verification of Invoice for Special Vendor
The following entry will be made after the vendor bill is received:
1) Part 2 A/C of RG 23A/RG 23C (CVD) Account DR Cenvat Clearing Account CR
2) Cenvat Clearing A/c DR and G/R I/R A/c DR
Supplier Account Number
3) Material Account Cost (DR) Vendor Account (Customs) CR
Verification of Invoice for Freight and Clearing Agent; Material Cost A/C DR; Vendor A/C (Clearing Agent) CR
- Verification of Invoice for Octroi Expenses
Vendor A/c (Octroi) CR Cost of Material DR - For service orders, TDS (Work Contract Tax) must be computed and subtracted appropriately.
Upon the passage of the measure, the following entry will be made: - The Costs Account DR
Supplier Account CR
TDS Account CR - Exchange discrepancies for capital items from import vendors must be manually recorded using a journal voucher for capitalization.
Differences in exchange rates will be recorded at HO. An illustration of the accounting entry in this scenario would be:
- Bill input at 40 INR = 1 USD
- Account for Asset/Expense DR 100
Provider A/C CR 100 - $1 USD at 41 INR for payment entry
Vendor account number 100
Bank Account Number (CR) 110
Capital A/c DR 10 Exchange rate loss
Exchange rate loss Capital A/c CR 10 Exchange rate loss Asset A/c 10
- For the unique G/L transactions, a new G/L account needs to be formed.
- The down payment will be recorded in the accounting as follows:
- Paying ahead to the supplier account
- Debit Bank Account Credit
The protocol should be adhered to is:
Definition of alternative accounts payable reconciliation used to post capital asset down payments
clearing the final invoice together with the upfront payment in accounts payable.
For the unique G/L transactions, a new G/L account needs to be formed.
The down payment will be recorded in the accounting as follows:
Vendor Advance for Capital Goods Account Credit/Debit from Bank Account
- Upon booking the invoice, the subsequent entry is made.
A/C Asset and WIP Asset Debit Account Number of Vendor Credit
Invoice clearance for the down payment
The vendor’s account number
Vendor Advance for Credit on Capital Goods Account - The TDS Rates are as follows (must be verified with the recent modifications)
Specifics Rate of Surcharge on Tax Rate 194 C contractors in total 5% 2.10% 2%
Promotion – 194 C 1% to 5% 1.05%
Professor Fees: 194 J 5% 5% 5.25%
Other Rent: 194 I 15% 5% 15.75%
Company rent: 194 I 20% 5% 21%
194H 5% 5% 5.25% Commission
194 A 10% 5% 10.50% Interest-Others
Interest: 194 A 20% 5% 21% Company
Works Contract Tax Special Concessional Tax - The vendors’ security deposits and the oldest money deposits received from them are as follows: Bank A/c DR Security Deposit Vendor CR
- In order for the EMD to be transferred to an unclaimed EMD account, the age must be provided.
TOUR ADVANCE PAYMENT FOR DOMESTIC TOURS
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