I am setting up a new business and any expense entry I make in “inventory”, “purchase invoice” or “payment” does not show up in the summary page under “less expenses”. Nothing I do posts as an expense. All other categories in the summary page populate properly. I am new to this, please help.
You need to furnish more information. How are you entering these expenses? Post screenshots of the Edit screens for representative transactions. It sounds like you either have not selected an expense account or your chart of accounts is set up incorrectly. Post a screenshot of its Edit page, too.
Hope these images are what will help. If you need anything else let me know. The way I read the screens it should go to inventory costs under expenses.
This is also a payment that I entered and it does not show as an expense either.
Well, you provided some screenshots, but you didn’t answer my question about how you are recording expenses. Nor did you furnish the Edit screen of any transaction.
As for Inventory -cost, that is where the cost of goods sold shows up after selling an inventory item, not after purchasing it. Read the Guides about inventory management.
Ok which edit screen you are talking about. I sent an edit screenshot of a payment and edit screenshot of an inventory item. I have read the inventory guides but do not see where I have gone wrong. But I am definitely new to this stuff so I am likely not understanding something.
From your screenshots I noticed that you entered starting balances. So did you carry these over from another accounting system. Similarly you autofill purchase and sales unit prices. It is better practice to make payments and assign receipts to these.I would recommend to read all the inventory related guides carefully.
Apparently some of our posts crossed. The screen shot of the payment was not visible while I was composing my response. That is what I needed.
So…you purchased 2 spark plugs on 2023-5-21. Their cost is included in the balance of Inventory on hand. You will see that transaction if you drill down on the Inventory on hand balance on the Summary page. The cost of inventory is not an expense. It is an investment in an asset that will generate future revenue. Only when that inventory is sold will its cost be transferred (automatically) to Inventory - cost and become an expense. This is fundamental accounting.
In the future, please present a coherent story. For example, you showed the Edit screen for an inventory item named Air Filters. But you showed a payment for an inventory item named Spark Plugs. That makes it very hard to follow your scenario.
Also, when you defined the Air Filters inventory item, you specified the program should use a custom expense account. But you did not select one. You left that as the default Inventory - cost. I suspect you expected the expense of these spark plugs to show up in the account you set up named Inventory Expense. There is no reason to have done that if you are not going to use that self-created account. Given your level of accounting knowledge, I recommend staying with the default expense account, Inventory - cost. Again, this is all explained in the Guides about inventory management.
That does help. Thank you for explaining what you did.
Have a look at www.accountingcoach.com