Sample Invoices , FOC Invoices are made for various purposes.
1. A Corrugator is Sending one box as sample to the customer.
2. A Plastic Component Maker sends a Washing Machine Tub as Sample for Approval to Samsung / LG Electronics
3. A Water Pump manufacturer is Sending a material for replacement to a customer, a small part is being sent to the customer.
4. You are a seller of the Packaging machine and a small nut has gone loose so you are replacing a nut and so on.
5. My buyer wants 2 pc for Displaying in his Showroom as sample. and I am ready to give it Free of Cost ( FOC )
How to Handle this in Finsys ( with GST 2017 )
In this case use the following one :-
1. Make a normal sale order in Type 4S === > Please note “4S”
2. Make a normal GST invoice in type 4S
3. Goods will go out, the Finished Goods / Materials will go out , the customer will be debited with zero because at the bottom of the invoice you would be selecting discount or free sampling account.
Example : If suppose the total of the invoice is Rs. 100 + GST Rs. 18,= Total 118. And at the bottom you would reduce it with discount Rs. 118.
Hence net value is (118) minus (118). So, the Grand Total is zero .
So the cusomer will be debited with zero. P and L Sampling Expense will be rise by Rs. 118 and Sale will be credited with Rs. 100 and your GST payable would be credited by Rs. 18 which will be paid to the Government.
This is the proper “legal system” of making or sending samples or replacements to various parties . Kindly follow the same .
The PDF copy of the Invoice is being attached below.
Invoice PDF (Click Here)
Click here for seeing the complete Powerpoint for Sample Invoicing.