Supplier statement, purchase invoice and goods received do not match: what should you check?

Trace one purchase batch through the records

Assume a China-based ecommerce company contracts with a domestic supplier for 12,000 units at RMB 700 per unit including tax. There are no discounts, separately charged freight or other price adjustments. The values below are gross purchase consideration, not automatically accounting inventory costs or recoverable input tax.

The supplier's statement provisionally lists 12,000 units dispatched, worth RMB 8.4 million. The warehouse accepted 11,800 units; the missing 200 are still being investigated with the supplier and carrier. The parties later confirmed in writing that 300 of the accepted units were returned to the supplier and require a settlement adjustment. The supplier's invoice currently covers the initial 11,800 accepted units and has not yet reflected the confirmed return.

The quantity bridge is 12,000 − 200 − 300 = 11,500 units. At the assumed gross price, RMB 8.40m − RMB 0.14m − RMB 0.21m = RMB 8.05m. The invoice exceeds net accepted goods by RMB 210,000, corresponding to the 300 units whose return has been confirmed. The separate 200-unit shortfall remains unresolved.

If the buyer has paid RMB 7.2 million to this supplier for this batch, RMB 8.05m − RMB 7.2m = RMB 850,000 is only the difference between net accepted goods and that payment. Until the parties establish contractual risk for the shortfall, any compensation and payment terms, it is not necessarily the final payable or an overdue amount.

Connect five sets of evidence

1. Contract and purchase order: establish the buyer, seller, product and unit of measure, tax-inclusive or tax-exclusive price, delivery location, transfer of risk and return terms.
2. Dispatch and receipt: match shipment, carrier, signed delivery, acceptance and warehouse records by batch. Track goods in transit, partial delivery, shortages and damage separately.
3. Return and correction: establish whether the supplier received the return, when the agreement takes effect and whether the contract calls for repayment, replacement or a credit.
4. Invoice: review buyer and seller, product description, quantity, amounts, tax, issue period and status. Preserve the mapping if one invoice covers several deliveries or one delivery is invoiced in several parts.
5. Statement and payment: link supplier statements to bank payments, prepayments, refunds and written adjustments. Do not add an invoice and the payment for it as though they were two purchases.

The Ministry of Finance's explanation of internal control guidance for procurement discusses checking contracts and invoices against quantities, quality and specifications, and maintaining linked procurement, acceptance and payment records. Organize the evidence around the actual transaction and applicable rules rather than deleting records to force agreement.

An invoice does not change merely because the warehouse record changes

First distinguish a shortage, goods still in transit, a return, a price difference and an invoicing error. Then have the parties compare the relevant documents. In the example the return is confirmed, but the appropriate invoice adjustment depends on invoice type, the original invoice's status and the applicable procedure; the warehouse's net quantity does not itself amend the invoice.

For digital e-invoices, the State Taxation Administration's guidance on red-letter digital invoices addresses returns and distinguishes procedures according to whether the recipient has confirmed the invoice's use and accounting entry. Following an issued special VAT invoice, returns and related circumstances must also be handled under Article 38 of the VAT Law Implementation Regulations and applicable tax authority rules. Do not edit the original invoice amount or assume every invoice uses the same correction process.

Accounting questions about title, acceptance, cost, liabilities and tax must also be assessed separately. Entities applying China's enterprise accounting standards can consult Accounting Standard No. 1 — Inventories; other entities should use their own applicable framework. A tax-inclusive reconciliation amount is not automatically the recorded inventory cost or deductible VAT.

Turn each difference into an action

For each open item, record the batch, quantity and amount in question, confirmed facts, dispute, supporting documents, owner, next follow-up date and closure evidence. Prioritize material items, approaching payment dates, perishable goods and invoice actions with relevant deadlines.

The operator needs to see which payments are disputed; the warehouse needs to trace the goods; procurement should confirm contract terms with the supplier; and finance can assess the evidence and accounting treatment. Continue with the missing purchase invoice guide, a tax consultation example, or the contact page for more about CaiGeek.