Purchase invoices

Step 1: I have created 1 supplier and 1 inventory item.

Step 2: I created 1 “Purchase Invoice” and I chose the ITEM

Step 3: I want to pay that invoice

Step 4: I can’t change the Account (I want to specify where these expeses are going to - so later I will see the NET PROFIT calculated) and if i do, the invoice will not be MARKED - FULLY PAID.

Any idea? Thanks.

Suppliers are linked to Accounts payable and Customers are linked to Accounts receivable accounts.
Unless you post payments to these accounts you cannot maintain their balances.

have you checked the reports section for various reports based on customer or inventory items?
read the topic below.

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This was done by the purchase invoice. The purchase invoice debited Inventory on hand and credited Accounts payable for the supplier’s subaccount. A purchase of inventory is not an expense. It is an investment in an asset. The cost of an inventory item becomes an expense only when the item is sold. Then, its cost is transferred automatically to Inventory - cost.

Remember, inventory refers to goods held for production or sale. If you are buying the item for consumption by your business, you should not buy it as an inventory item, but as an ordinary purchase. Then you could allocate to an appropriate expense account.

That is because you would not then be paying the invoice. If you allocate to some expense account rather than Accounts payable, you making an ordinary purchase, not an inventory purchase, as I described above.

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