Purchase Invoice Not Reflecting On Income Statement?

1

Hi
I got some goods on credit and created a purchase invoice of the said goods.
However, although reflecting in the inventory of the correct items at hand, it is not reflecting on my assets or liabilities in my final statements.
Is there something I did wrong is this how it works?

2

A purchase invoice, like all entries in double-entry accounting, affects at least two accounts. If you have entered one properly (for inventory items purchased), it will do two things:

  • Increase the balance of Inventory on hand, an asset account. You can drill down on this balance on the Summary page, then on the balance for the specific inventory item, to see the transaction.
  • Increase the balance of Accounts payable, a liability account. Drill down on this balance, then on the relevant supplier’s subsidiary balance, to see the transaction.

Where else did you think it should show up?

3

It sounds as though you might be set up as Cash Basis accounting, go to Summary tab > Set Period and change to Accrual Accounting then the assets or liabilities will be reflected.

4

Thank you that worked :slight_smile: