Glossary

Concise definitions of procurement, fixed asset, and audit terms used in Indian organisations. Each entry covers what the term means, how it is treated in the books, and the relevant CARO 2020 or Companies Act 2013 reference where applicable. For longer treatments and process walkthroughs, see Guides.

Write-Off vs Disposal

A write-off reduces an asset's book value to zero (no cash). A disposal is the physical removal of the asset (often generates proceeds). Definitions, comparison table, CARO 2020 audit treatment, and FAQ.

PR, PO, GRN — The Procure-to-Pay Process

PR (purchase requisition), PO (purchase order) and GRN (goods receipt note) are the three core documents of procure-to-pay. Full forms, the sequence, and how they feed three-way matching.

Purchase Indent

A purchase indent is the Indian term for a purchase requisition — an internal request to buy, raised and approved before a purchase order is issued. Meaning, who raises it, and indent vs PO.

GRN (Goods Receipt Note)

A GRN records the quantity and condition of goods received against a purchase order. What it records, who raises it, and its role in three-way matching.

Three-Way Matching

The accounts payable check of a vendor invoice against the purchase order and the goods receipt note before payment. The three documents, tolerances, two-way vs three-way, and GST ITC relevance.

TDS Shortfall

A short deduction of tax at source — tax deducted at a lower rate or amount than required. Meaning, common causes, interest under section 201(1A), and how to correct it.

CARO 2020 Clause 3(i)

The auditor's report on property, plant and equipment — records, physical verification, title deeds, revaluation, and Benami proceedings. The five sub-clauses explained.

Asset Verification

Physical verification of fixed assets — confirming the assets in the register actually exist, are in use, and match the recorded condition. Meaning, how often it's required, the CARO 2020 reference, and verification vs tagging.

Asset Movement

The recorded relocation of a fixed asset between locations, custodians, or departments. The three kinds of movement, how a movement is recorded with dual-phase approval, and why it keeps the asset register current.