How to enter purchases other than stock item like stationary?

ERPNext Accounting
1

How to enter purchases other than inventory like stationary ?

which module i can use for this entry ?

2

Hi @renjukumar,

  1. In item master , If "Maintain stock " enable then item become ‘Stock Item’
  2. In item master , If "Maintain stock " disable, Item group=Service then item become non-stock Item

You can purchase these items via ‘Buying’ module(Purchase Order, Purchase Receipt, Purchase receipt)

OR

Through “Stock” module (Stock entry-> with Purpose-Material Receipt)

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3

If you don’t want to maintain stock/inventory for any items, create a non-stock item for them. In Item master, while creating item, uncheck “Maintain Stock” field. Then to book purchase, follow normal purchase order and purchase invoice.

4

I don’t like this method. It’s a major drawback. If I add stationery as a non stock item, will it show in my expenses?
I want to add stationery as an expense in my chart of accounts.

I would recommend that you fix this. When making a purchase order, allow the user to choose inventory item or account item.

Its simple

5

The reason it is showing up as an expense is because it is an expense. This is the right behaviour as perthe accounting standards.
Thanks

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6

I agree.
But following your method it will go to inventory as an expense and not a line item on the trail balance.
Unless inventory items on ERPNext can be linked to expenses on the trail balance instead of cost of sales?

7

While making Purchase Invoice against a non-stock item, you will be able to select an “Expense Account” to book the expenses.

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8

Thank you:slight_smile:
We are loving the program

9

Is the ability to select an Expense Account available for stock items also - where we maintain physical stocks of inputs for count/reorder purposes, but do not actually use them in BOM/cost of sales?

What would be a way to reduce stocks of such items on being used in such situation?

10

If you are using the perpetual inventory system, the expenses are booked when they are delivered / consumed. Till the consumption, it is your asset. That is the concept of perpetual inventory.

If you want to book expenses before consumption, then may be you can disable perpetual inventory from Accounts Settings. In that case, you need to book stock value manually via Journal Entry periodically.

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11

@Chandra You need to understand the consequences of not using perpetual inventory.

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12

Thanks @nabinhait @Fred1

My ideal scenario would be this: I buy some manures, take them into inventory and manage their stock until using them. I use them up at some point but cannot tie the use to manufacture of specific finished goods. Hence I need to expense them at that point - the stocks and values need to be corrected.

With my limited accounting knowledge, I think this is still perpetual inventory model. Correct?

What would be a typical journal entry at the point of use of the manure, if it is sitting in the inventory?

Thanks.

13

You should create a Stock Entry of type “Material Issue” when you use them. The system will book expense for the items and stock qty will also remain correct.

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14

dear sir,
kindly guide for employee imprest mony entry in erp next.
also confirm the land advance entry.