I wish to use a perpetual inventory system and am using the
My account category is setup as follows (all products have this accounting category):
Now, when I create a purchase order, and shipment reception has not been done, validating an invoice creates the following moves:
If shipment reception is done and then invoice is validated, the following account moves are shown:
Could someone please clarify:
why there are expense account entries being made here since in a perpetual inventory system, it is the inventory/stock journal that should be affected (unless it’s the COGS account).
No entries are created involving the ‘Account Stock’ or the Stock Journal when a shipment is received. Only if the invoice is validated after shipment reception, then ‘Account Stock IN’ is debited. Since no ‘Account Stock’ entries are being made, which account should be used for stock valuation? Should ‘Account Stock IN’ and ‘Account Stock OUT’ be set to the same account?