Basic doubt: purchasing inventory and inventory count


I have a basic doubt which is confusing me a lot

To purchase a inventory item:
i can go to purchase order> select suppliers, item,quantity, price etc… then create
now copy this to purchase invoice and create.
if i check my inventory i received the product which i ordered.


i have to pay my supplier before i receive the item.
ex: i ordered the item on 2 sept,2015 and paid 70% of the amount

and 20 sept 2015 supplier is ready to ship the item and i have to pay remaining 30% payment.

and i actually received the item on 25th sept 2015.

according to manager
the day i created purchase invoice on 2 sept 2015, i received my inventory items. but in reality i received on 25th sept.

Am i doing anything wrong?


From accounting point of view, the inventory item is purchased when you create Purchase invoice. It doesn’t matter when you pay or when the item is actually delivered.

The same goes for sales. The inventory item is sold when Sales invoice is issued. It doesn’t matter when customer pays or when the item is actually shipped.

Obviously this means that inventory count will be often different from what you physically have on hand.

To address this issue, I’m working on a module which will allow warehousing functions. This way you will be able to see how much inventory you really have on hand. How much is yet to be received from suppliers or shipped to customers.


Thank you

i will wait for those new warehouse functions.