Is Stock Item - Yes and Purchase Invoice

ERPNext Accounting
1

Dear all,

i was trying to create the Purchase Invoice with a item which is a stock item.

I have set the default expense account and cost center in the ITEM.

when i select the item in the Purchase invoice, all these values are filled automatically,

but when i click on Save then default expense account and cost center is removed.

Please can anyone explain me why we are having such a scenario, why the default expense account and cost center is not saved.

2

Hi

  1. Go to “Account Setting” .
  2. Keep “Make Accounting Entry For Every Stock Movement” as - Disable (Uncheck it )
    3.Save it.

Now create one purchase invoice and save .
Check whether Invoice taking correct Expense account and Cost center of respective item.

Note:- If you keep “Make Accounting Entry For Every Stock Movement” as Enable
then after saving “Purchase Invoice” it taking Expense Account as “Stock Received But Not Billed”

Shraddha Ranjane
New Indictrans Technologies Pvt. Ltd.

3

Hello,

As per the perpetual inventory valuation system, expense for an stock item is booked when it is delivered.

To have stocks and accounting in sync, you should stick to perpetual inventory valuation system, and keep Make Accounting Entry For Every Stock Movement checked in the Account Settings.

Check following link to learn more about difference between valuation methods available in the ERPNext, and how do they work.

https://erpnext.com/user-guide/stock/accounting-of-inventory-stock
https://erpnext.com/user-guide/stock/accounting-of-inventory-stock/perpetual-inventory

4

@umair say we enable stock for an item and we use perpetual inventory, we want to purchase an item that is used internally within the company (the item is not sold) and we want to recognize cost for this.

In this scenario we wont ever create a delivery note because the item is not sold. How do we recognize cost when we use the item? What document needs to be created?

5

Hello,

That would be an Asset item!

For the asset item, an expense is booked via Asset Depreciation Entry. In the ERPNext version 7, we have added complete functionality for managing fixed asset depreciation.

https://frappe.github.io/erpnext/user/manual/en/accounts/managing-fixed-assets.html

6

Hi,

Not able to find this “Make Accounting Entry For Every Stock Movement”

Under Accounts-> Accounts Setting

Please help