I am looking at creating a purchase order for a supplier. There is a fees (weigh bridge fees) that I am paying on behalf of the supplier. So, when creating the purchase order, I want to deduct that fees from he supplier. How can I do this? Also, since I will be paying this fees directly to the weigh bridge, how do I account for this expense in my accounting?
Possible solution:
- Create purchase order.
- Create invoice from purchase order and include a discount in the purchase order for the fees amount.
- Separately, create a journal entry for the fees amount as an expense.
There wouldn’t be a direct relation between the purchase order and the journal entry for the fees, but this approach will kind-of work.
Does this make sense? Is there a better way to achieve this?
Hi @vasanthv16! When you reach Payment entry, you can actually add accounts in the Deduction or Loss section.
If this doesn’t work, you may want to work on some scripting and customization for this.
Regards
@creamdory, I was expecting some option in the Purchase Order or at least in the Purchase Invoice. But the option you pointed out (Deduction of Loss in Payment Entry) is still better than what I was planning on doing, which is creating a separate Journal Entry.
So, my steps are as follows.
- Create purchase order.
- Create invoice from purchase order and include a discount in the purchase order for the fees amount.
- Create Payment Entry against the invoice. In that, pay the supplier the discounted amount and then add two Deduction entries - one expense entry for the fees and another entry with a negative amount for money coming out of the bank.
Thanks, for the pointer!
The steps look good. Glad to be of help @vasanthv16!
Regards
