Goods Received Short

[former_member604731]

Dear Sir,

WE purchase a raw material Tea from inter state dealer in India. Lets discuss this situation. We have done Purchase order for 10000 Kgs and same been loaded by the supplier on the transport Vehicle and gives invoice for the same.Transport driver while bringing the goods in a factory looses or damages 2000 Kgs of Raw Tea.Hence we deduct the money from the driver @ 2/per Kgs. My question is here GRN to be done for how much Quantity in MIGO And MIRO for the how much Quantity???.Later also what happens in most of the cases same driver brings back the goods lost earlier along with new consignment . Then we repay the money deducted earlier. Please quide what is to be done in 2nd Situation GRN For how much QTY and Invoice for how much QTY???

[narasimhulu_konnipati · Accepted solution]

There are two approaches (as per my knowledge)

1. Post the Full QTY as GRN and Post a Credit note for Returns. In your example, 10000 KG should be your GRN and Invoice and 2000 KG should be returns. In this case, 10000 KG - 2000 KG = 8000 KG and you will be paying a net amount for 8000 KG by combining the Invoice (10000 KG) and Credit note (2000 KG).

2. Post the received QTY as GRN and create invoice for received QTY only. Post receiving the remaining QTY, create a new GRN and Invoice. In your example, 8000 KG will be your GRN and the same will be invoiced. When you receive the remaining 2000 KG, then post a new GRN and create an invoice for that.

Based on your business requirement, you can chose one of them.

Thanks,

NSK

[former_member604731 · Accepted solution]

both the option not suitable.As i do not want to give treatment of loss of Kgs to Vendor. I m recovering money from Driver only. I want to Post Vendors Full Invoice.

My answer is Do GRN For 8000 Kgs and MIRO for 10000 Kgs. According to me Cost of 2000 Kgs damaged or lost will book on the Inventory. Isn't it???