Expense Head of Particulate Item

While making purchase invoice under ITEMS section one column is there “EXPENSE HEAD” in that column i have select one “EXPENSE HEAD” as per as item. But after save that record it showing
"Stock Received But Not Billed " instead of selected expense head…!
Event i have set by default Expense Head while creating the Item

So please give me your valuable solution about it…and what should i do

                                                                                                                         Thanks and Regards
                                                                                                                              D N Gupta

It seems that you have activated auto-inventory accounting and in that case it also seems that the item you are receiving is a Stock Item.

So in case of receiving a Stock Item, there is no expense instead an asset is being created in your system when you receive the goods. The Stock Received but not billed ledger is generally an temporary account and a reverse entry is made into this account as soon as a Purchase Invoice is made for the GRN.

If you are new to auto-inventory accounting then initially this seems a lot confusing as we are always in a habit of booking an expense when we buy an Item but in reality the expense is only booked when you sell or consume the item.

Thanks for your valuable reply…!
And one more thing i want to know, which is about STOCK
When i am entering purchase invoice my stock qty for the item does not get updated
I am not making any separate stock entry and want stock to be updated when i enter Purchase Invoice.

hey DBGupta, herer is what i have understood from my experience,
first you make an item request …optional
Second you make purchase order … again its optional but recommended if you are buying it on credit
third you receive inventory (use the purchase order you created, see at the top there is a button says “receive inventory”) ….this updates your stock
fourth you make invoice
and last you pay the supplier .

i would recommend when you make say purchase invoice… go to that purchase order and it also allows you to make invoice on top right section of page… thats a convenient way and it links the account
instead you go to buying and making a new purchase invoice and then choosing supplier and PO etc …

@asr1722 there is a small correction…as of now the Purchase Invoice “does not” update the stock. It is primarily an accounting voucher only which would update the creditor’s account.

To update stock you would have to make a Purchase Receipt (which is receive the stock).

What I am doing in my company is that in the Purchase Settings I have checked the option of Purchase Order and Purchase Receipt as mandatory which ensures that all users in my company follow the below path:

Purchase Order ===> Purchase receipt ===> Purchase Invoice

If you want you can do this in the settings of Purchase cycle.

THX @adityaduggal
i have corrected my mistake … this was a typing mistake …
and further thx for the good idea of making Purchase Order and Purchase Receipt as mandatory