Need help is setting up the Account Heads

I am creating a new item under Stock (icon).
Under “In Purchase Item” I have to select the Expense Account & I am not sure about the option to choose.

Kindly help me out in choosing the right option.

Hi,

  • Expense account means the cost of item will be debited from respective account
    it can be traveling expense, salary expense.
  • In Item form, those you are keeping “Default Expense Account” that will be displayed in “Purchase
    invoice” form by default.

Refer following link-
https://manual.erpnext.com/accounts/purchase-invoice

Shraddha Ranjane
New Indictrans Technologies Pvt. Ltd.

@Praveen this is the head under which your item will be booked as expense when you deliver could be raw material, consumables etc based on your business structure. Best to engage and accountant for this.

Thank you all for your support.

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