What to Check in Sales Order?
We usually assume that if invoice is generated by system it has more reliability. That’s why sale audit is mostly done just for taxation.
But
—Here are some questions for you—
1️⃣
Have you checked your Sale order’s price?
2️⃣
Have you checked that the price of invoice is according to the discussed, agreed and final price?
3️⃣
If effective date is correct or not ? –
(For more clarity like – the price was effective from 1st April and you started the invoicing of price changed and you get order on 10th April and you changed the price in your ERP on 15th April.
So..as per the things price gets changed from 15th April, if the debit notes were made for the dates from 1st to 15th April or if credit notes have to be issued-issued or not ?)
Who is Responsible and Accountable for all this?
You have to understand that it’s also an important area for Audit.
There are some important areas of Sale audit.
Today we gonna discuss about one of them which is –
New Sales Order
Here is the checklist you should be checking-
Which Sale order is new in this month? – It can be either fresh or amended orders.
What is the position of the orders? – If in literal we got the order or it’s just party has asked for the quotation on mail.
We should ask or cross-check with the management that – If we get the price increase in any order in this month according to our assumption or not?
After checking the Sale order given by management you should check whether the already rate entered in your ERP are correct or not?
Check the Sale order physically or either make demand for it. As there is a possibility if you doesn’t have your customer’s P.O (Purchase Order) and you changed the price, this will not be considered as increase in price.
If taxes deducted are ok or not or are according to discussion or correct or not ?
Effective Date is correct or not ?-Is there any Retrospective increase or decrease?
E-invoice should be made or not ? as its mandatory for the organization over 5 Crore turnover.
These all points should be covered while you are going to have your Sales Audit.
–> Next time will talk about our next important area of Sale Audit which is – ‘New Customer Creation’<–
Stay tuned for more such informative content and see the video below by – Mr. Sangeet Kumar Gupta, F.C.A and Co-founder of Finsys for further information and more clarity .
Also read about the recent event he attended by the link given below:
https://mlgassociates.in/world-forum-of-accountants
