Accounting aspect while entering item

Dear All,
I am new and now I am entering items in erpnext. These items are manufactured by us. What does the following filed mean ? how should I configure these fields? Please help me …I am new.

Default income account
Default selling cost centre
Default buying cost centre
Default expense account

how the above fields run for any item?

with the best regards,

Hi, Default income account and default expense account are accounts for recording income and expense in reference to the item. Please refer to for Default selling cost centre and Default buying cost centre.

@NeisSenni Thanks for reply. I have gone through the link that you shared. This sounds very important as the correct business analysis will only come if these are properly defined, categorised and assigned. Our business earns the income from segments (1) B2B (business to business) Sale (2) B2C (direct to enduser or Business to Customer sales (own labels) (3) Consultancy. (4) Research & Development Services Further B2B sale (category 1) is divided in two types: (1A ) Supply in bulk packaging (1B) Supply in retail direct sellable packaging. Now for example we are selling product name “Harvest” in B2B as well (Packaging 60 Lit, and 220 lit packaging) and in B2C we are selling same product in 1 lit bottle (with our own label); 500 ml, 250 ml, etc. We are manufacturing this product (not trading). We have some products that are generic and we are trading them. Then in such scenarios how should my chart of accounts should look. Please help. I don’t want to mess up with foundation (basics). @kolate_sambhaji @keshav

@Cropg1 It depends on how you want to see it. If you want separate entries for B2B and B2C, say product “Harvest” then you have to create two items with name “HarvestB” and “HarvestC” and attach account “ProductGroupB2B” and “ProductGroupB2C” respectively. These accounts can be created under Income->Sales.For different size of “Harvest” you can use Item Variants. I think there will be only one cost centre for the product “Harvest”.

Thanks @NeisSenni According to your suggestion I have created variants. I have left two variants for bulk sales (because bulk B2B customer) will not buy 50 Lit or 200 Lit variants. Hence the problem seems to be worked around. The Direct income tree is now looking like as shown in snapshot, please suggest if you have advice.

@Cropg1 the tree seems fine and I agree this workaround.

Thanks @NeisSenni. Hope you keep on supporting in future too.

Welcome @Cropg1. Sure, I will keep on sharing in future.