I just doing a bit of research around the impact of chart of accounts. I have a non-stock item that is in the stage “received, but not yet invoiced”. Meaning that there is a purchase receipt that has been submitted, but a purchase invoice has not been created yet. At this stage, there’s no impact on the Chart of Accounts. How come?
The net effect is that this material is with the receiving company now but because it is a non-stock item it needs to be expensed. But because an invoice has not been created, shouldn’t there
me an account “Non-Stock Items received but not invoiced” that needs to be impacted and another “Temporary Non-Stock Items held till invoicing” that also needs to be impacted?
Or an Temporary Expense Account and a Temporary Liability account that needs to get impacted.
I’m uncomfortable about no impact on the Chart of Accounts.
The accounting experts can possibly weigh in. One could argue that for non-stock items there isn’t any advantage in doing a Purchase Receipt, the way ERPNext is set up sright now, and a company is better off doing a Purchase Invoice straight, but most organizations would like simplify the process for it’s employees. One standard process for both stock and non-stock items - PO>Purchase Receipt>Purchase Invoice.