Accounts Payable and the P&L relationship

Hello All,

I have hired a car and made the car hire expense account in the P&L Expenses.

I issued a purchase order in manager and a purchase invoice under the car hire account. However when making payments, this appears under the account payables account and manager does not update the payments made to the car hire expense account.

Please let me know if I am doing anything wrong here. Why doesn’t a payment made from purchase invoices update the respective P&L account ?

First, a purchase order has no financial impact. See And a purchase invoice does not record a payment. It records a supplier’s sales invoice to you and establishes a payable in the Accounts payable account. Payment of the purchase invoice is recorded with a payment, posted to Accounts payable > Supplier name > Purchase invoice #. See and

Thanks for the response Tut.
It actually works when I deleted and retested. Not sure what has been my issue (I guess i need to have references and descriptions well done)