Following an earlier topic on inventory:
I paid for the inventory but the inventory is not received yet. So, the not yet received inventory is placed at an account called Prepaid for inventory, not yet received .
When I received the item, I would then create a Journal entry, and credit it out from Prepaid for inventory, not yet received and debit Inventory On Hand - Inventory name , and also the quantity received.
The quantity shows up on the inventory list. Looks ok so far.
The problem is, when I issue a sales invoice for that particular item, it is not decreasing the inventory. I checked that the quantity sold on the sales invoice is 1 , so it should decrease.
Inventory changes made through journal entry is not decreasing. How to get the inventory number to decrease?