Payment in lieu of products
Supplier charge certain % of commission on our sales being agency comm fees which settled through normal payment. However supplier now want their fees to be paid by our products without issuing any tax invoice to us on the comm fees. Is this permissable and legimate? If not, what document require in this transaction of the payment mode (products instead of monetary payment) and tax code to use?
This mean supplier must issue us a tax invoice for the commission charged to us and we can pay in lieu of products instead of cash payment?
When we pay by products, we normally generate SO, DO and Invoice however since this is a settlement to the invoice from supplier, what document to issue and what related tax code should we be using to recognize the products sent?