Expense head in purchase invoice

Hi, while I creating a purchase invoice the Expense head is showing ‘Stock in Hand’, then I manually changed expense head as ‘Cost Of Goods Sold’ but after submitting the invoice, expense head didn’t change. and the cost of goods sold ledger remains zero. So, please give me a solution as soon as possible.

Head over to the company master and check if Perpetual Inventory is enabled:

If it is enabled, then at the time of purchase, the expense of the item is not booked in COGS but added to Stock in Hand. Only at the time of item’s sales it will be booked in COGS:

https://erpnext.com/docs/user/manual/en/stock/accounting-of-inventory-stock

https://erpnext.com/docs/user/manual/en/stock/perpetual-inventory

If you want to book the expense of item into COGS at the time of purchase, you can disable perpetual inventory.

2 Likes

Thank you very much