New inventory items issue

1

Hi
I think that there’s an issue with what the below picture shows

image
image750×981 972 KB

It should be when the item is bought or purchased

Thanks

2

No, this is correct - an inventory item is only expensed when it sold (Cost of Sales) before that it is carried on the Balance Sheet

3

Sorry
Can you explain more

4

When you purchase something for stock the accounting entry is

Debit Stock on hand
Credit Bank account or whichever account you use to pay for the item (or Supplier account, if it is bought on credit from a supplier)

When it is sold the accounting entries are
Credit Sales or whatever custom income account you specify on Item definition
Debit Bank Account or Customer account if sold on credit

and

Credit Stock on hand
Debit Cost of Sales or whatever custom expense account you specify on the Item definition

5

UAh ok
So one about how much is the income behind the selling operation
And the other for how much costed the sold goods

1 Like
6

Correct