Hi,
Please can anybody tell me why COGS account and amount is coming in Purchase Invoice’s ledger?
some invoices have this, and some don’t (with exactly same details and items)
also as per concept its totally wrong, if we’re purchasing goods from supplier for amount 52015.35 then we need to pay the same amount to supplier, why some amount going into COGS instead of Payable?
This will happen if the “Maintain stock” is not checked for the item in the item master
On purchase the value will go straight to the COGS account instead of the inventory account
Please check
@olamide_shodunke thanks for your reply.
i’ve only one item in purchase invoice, and its checked maintain stock in item master.
Why is your Stock A/c getting debited by 52,015.35 when your Stock is worth only 51,480?
Please check your configurations and transaction
Its from landed cost voucher. but in landed cost taxes 52318 - Expenses Included In Valuation account is selected for apply taxes.
It is the Landing cost voucher that is causing the cost of goods to be credited with 535.35 in the purchase invoice because the system wants to value the incoming stock vis-a-vis the the prevailing stock value instead of 16.50 that is the incoming rate. That is why you see the stock in hand account is debited with 52015.35 why the supplied is credited with 51,480.
For proper understanding go to the stock ledger and see the incoming rate and the valuation rate of that transaction.
What valuation method are using? Did you apply the landing cost voucher on this particular transaction? But what does accounting standard says about incoming stock valuation? Is the system actually doing the right thing? Should the system ought not to accept the incoming rate of 16.50 as the valuation rate? Depending whether you use FIFO or Weighted Average,is not at the point of issue or transfer that valuation rate should apply? These are posers to be resolved.
Your answers to the ones that relate to you with regard to this transaction will help community to answer others
