Supplier & buyer sales amount not same

[yujin kim]

Dear sir

 

We are doing job work for 5years. and we found suppier booked sales amount & our booked sales amount is different.

Suppose we booked 5lakh into Tally system in 2010-11FY as per our tax invoice.

But supplier book less amount (4.5lakh) in their ERP.

I think they deduct some defective material, lost material etc.

Is this possible for accounting system?

In my knowledge, it cannot be possible.. worried about this.

[YAGAY andSUN]

If your customer has deducted some amount due to quantity or quality issues, then, you can ask to them to issue a discrepancy note along with debit note in this regard.  After getting the proper reason for deductions you would be able to reconcile the accounts.

Further, it is advisable to reconcile the statement of accounts quarterly basis to avoid such scenarios. 

[Mahir S]

The main point here is that as the sales amount are different , whether the job work charges are paid to you is as per the job work carried out or less.

 If less amount as job charges are received due to deductions for defective material, lost material etc. then the same can be allowablve only if a note is sent to you in advance and the same is agreed by you..

AI Summary

Invoice reconciliation: require a discrepancy note and debit note for any buyer deductions, with prior agreement enabling allowance. Discrepancies due to buyer deductions for quantity or quality require a discrepancy note and a debit note from the buyer stating reasons and amounts so the seller can reconcile accounts; deductions are allowable only if previously agreed, and parties should perform periodic (ideally quarterly) account reconciliations to resolve mismatches in job work charges.