Under my chart of account, I have an expense account called “Purchase of Inventory Items”
However when I input into the system a purchase invoice it doesn’t show up as an account “purchase of inventory items” in the expenses category.
When you buy inventory items via purchase invoice that sends the items to asset account - Inventory on hand.
When you sell the item it then gets posted to the expense account - Purchases of Inventory Items, as item is only an expense when it is sold.
On Summary screen, if you click on the figures to the right hand side of Inventory on hand asset account, that is where you will find the purchase invoices.
Thanks for the reply.
- However my inventory doesn’t update. I made a purchase invoice with the items and I still see “0” under the amount of inventory I have.
- Why does it only because an expense after it is sold?
I had the same issue. Had to go back to the P/I and select the supplier.