DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Inventory Cost Change After Executing Supplier Payment


#1

Hello,

Whenever I execute a payment to a supplier, the inventory cost changes! Why ?
Please note that I am using Cash basis accounting setting and multiple currencies.


#2

This is the very definition of cost basis accounting. The impact of your purchases is not seen until you pay. This is the reason most accountants prefer accrual basis accounting. And many governments require it whenever a business has inventory. Cash basis accounting does not present your current position as completely.


#3

Thank you! Well clarified.