GL Account mapping for Services (Non-Stock Items)

ERPNext Accounting
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Dear Experts,

I hope this message finds you well. I am currently stuck at a certain point in my business process. The nature of my business involves some services that I purchase and sell. As you all know, in ERPNext, a purchase receipt is not created for service procurement; instead, a direct supplier invoice is generated. When posting the supplier invoice, the service expense account should be debited, and the supplier’s payable account should be credited.

In my case, there are multiple services for which I need to map their respective expense accounts. However, since these are non-stock items, the system does not allow mapping expense accounts even at the item group level (under “Service”).

Moreover, I cannot specify an expense account in the company defaults under “COGS Default” because I deal with different services.

Could you kindly guide me on how to configure this setup properly?

I am looking forward to your response.

Best Regards,
Ikrama Haryani

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How many unique services do you want to track? If there are many, can you happily group them by a manageable number of categories?

If you need to track income and expenses for many services, perhaps you can involve the projects module. If there are a small number of services or service-groups, cost centers may help.

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Thanks for your response, @volkswagner. This is indeed a great workaround. Additionally, I’ve discovered where the expense accounts for non-stock items can be mapped. They can be set in the Item Master, under the Accounting tab. Similar to adding a default warehouse for stock items, you must specify the company in the row or expand the item level. Here, you can assign default expense and income accounts for each item.