Delayed payment beyond the agreed credit period

ERPNext India Compliance
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1

A company purchases goods from a supplier on credit. Due to delayed payment beyond the agreed credit period, the supplier issues a Debit Note for interest/penalty charges.

Example:

Particular Amount
Interest Charges ₹5,000
GST @18% ₹900
Total ₹5,900

The company needs to record this transaction so that:

:white_check_mark: supplier outstanding increases
:white_check_mark: GST is reflected correctly
:white_check_mark: transaction appears in GST summary/report
:white_check_mark: books match supplier debit note
:white_check_mark: proper accounting trail is maintained

2

You can create Purchase invoice.
You can create a non-stock item with default expense account and use that.
This will be covered in the GST Reports.