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Which of the following documents should accompany a payment made to supplier?

A. Supplier statement

B. Remittance advice

C. Purchase invoice

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Question ajoutée par Wasim khan wazir , Finance Specialist , Mott Macdonald
Date de publication: 2015/06/15
Tareq Obeidat
par Tareq Obeidat , Chief Accountant , Etmam International Co

The correct answer is : 

B. Remittance advice

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

My answer is option: B .Remittance advice.

Shubham Sengar
par Shubham Sengar , Finance executive , Concord Biotech Limited

The answer is B .in Remittance advice.

 

Explanation : When a payment is made to  supplier of any material, the invoice is normally being booked in the books of accounts of the company. And after the credit period had been expired the payment is made by the company. Hence remittance advise is prepared and sent to supplier while making the payment.

 

 

1 See that the purchase order of the company clearly specified that the payment must be made in advance.

2 If the purchase order states that the advance payment should be made against the pro-forma invoice than see to it that a duly authorized Pro-Forma  has been received before making the advance payment.

3 Last but not the least. Normally in case of advance payment to capital goods suppliers the payment is made in installments e.g. :10% in advance against pro-forma invoice,50% after getting approval form QC department and rest after successful installation of the same. If that is the scenario than please see that the only10% payment is made in advance.  Some companies also keep ‘Retention money’ even after successful installation of the capital equipment. That is also allowed in the books of accounts of the company.

 

 

Regards

Shubham Sengar

(CA,CS)

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