In the previous version , while entering purchase, we can enter without selecting item and using inventory-cost account, but in new version 21.3.95, the inventory-cost account is missing. What to do now, please suggest work around.
I read some where in manager guides to enter purchase invoice without selecting item in some cases
You need to click on Item and select the Inventory item you want to purchase. This will then show the information you need. You can add ore items by clicking add line.
please see the screen shot attached, purchase invoice created without selecting the “item”.
This is an error and while it was possible in the past, it is no longer possible.
In general, inventory costs are associated with inventory items.
The exceptions are costs such as freight-in but even these are spread allocated to inventory items.
What costs are you trying to add to the Inventory account?
Inventory-cost no longer appears in drop down menu while entering purchase invoices
It will as soon as you select an item
You can not enter inventory costs with selecting an item
i think that manager update had dropped this option
Please note that current version is 21.4.74 not 21.3.95
Updated to latest version today other than mentioned, same issue
This is NOT an issue - it is how Manager works
Then how in previous version manager allows to enter purchase invoice without selection of item and enter directly to inventory cost account.
The main point is that Inventory Cost menu is disappeared from drop down menu.
Please refer screenshot
Yes, I know - but I would now consider that this is now not permitted
Inventory - cost is available in Journal entries, Expense claims, Payments and receipts.
If it is available in these it is hard to understand why it isn’t available in the purchase transactions (Purchase invoices and debit notes) and Sales transactions (Sales invoices and credit notes).
This is not consistent.
Sorry, I am mixing up the Inventory - Cost and Inventory on hand accounts
In journal entries, expense claims, payments and receipts, you have to enter an inventory item if you select the Inventory on hand account or it goes to Suspense account
If you are purchasing something for inventory, it would be incorrect to post it to the Inventory - cost account, No?
The Inventory - cost account is to record the cost of sales for goods sold
I read it somewhere in manager guides in special cases the inventory purchase can be entered without selection of items and system by default select inventory cost.
One more thing the inventory cost account is appearing in expenses in summary tab but not in drop-down.
If we clone purchase invoice in which inventory cost account is selected, the new purchase amount is automatically transferred to inventory cost account under expenses in summary tab
What exactly are you purchasing and allocating directly to the Inventory Cost of Sales account?
It does not seem to be the correct accounting procedure but maybe if you explain more clearly what it is you are purchasing, it will be more understandable
If u use item while purchasing it’s moving to inventory on hand in assets Tab on summary page and if make purchase without item and it’s automatically moving to inventory cost account under expenses tab. Since purchase of goods is an expense it’s moving to right account.
No it is not.
If you purchase an inventory item, it is not an expense but an asset. The purchase cost amount is added tot the Inventory on hand account in the balance sheet.
When you sell an inventory item, the value of the sale increases the Inventory - Sales account and the cost of the sold inventory item increases the Inventory - cost account and is subtracted from the Inventory on hand account.
Adding the purchase cost directly to the Inventory - Cost account as you are doing is completely wrong in 99% of cases.
There may be some exceptional circumstances that require you to do this, but normal business practise is not one of them.
If you are doing this, then you are incorrectly accounting for your purchase, sales and stock
Purchase of goods for resale are assets (Inventory on Hand, Balance Sheet account) until they are sold. When they are sold their cost is automatically put to Inventory-cost.
