Purchase Invoice Not Showing Up in Expense Section of Income Statement

We use our credit card for most purchases needed to run our business. I understand from the forum discussion that if you use a credit card, you don’t need to create a Purchase Invoice. But I want to use the Purchase Invoice to keep track of history of purchased items. My problem is when I create a Purchase Invoice and assign them to their specific expense accounts – they don’t show up on the income statement under the expense section. Why? What I am doing wrong? It shows up as a negative figure in the Equity Section. Any help would be greatly appreciated. Thanks in advance.

This is not an appropriate goal in using purchase invoices. Purchase invoices record obligations to pay suppliers. So even though you are not purchasing on credit, it can be appropriate to use them to track your history with a supplier. But thinking of them as a way to track your history of purchasing items adopts the wrong perspective.

Although you didn’t say, I suspect these transactions are showing up in the Suspense account, which is where Manager parks incomplete or incorrect transactions so you can fix them. It is listed in the Equity section of the balance sheet when its balance is non-zero. See this guide on sorting out such problems:

You have not been very specific in describing your problem, but in general, using purchase invoices when you buy things with a credit card must involve two transactions. The first records the supplier’s invoice. The second records paying off the liability. So at least three accounts are involved: Accounts payable (and the supplier’s subaccount), an expense account, and a cash account. Making them all work together correctly is covered in these guides: