When I create a Purchase Invoice, a popup shows as below, where can i set this out.
Thank you in advance
Expense Head Changed
Row 1: Expense Head changed to 1410 - Stock In Hand - RT because account 5111 - Cost of Goods Sold - RT is not linked to warehouse Stores - RT or it is not the default inventory account
Without Purchase Receipt and āUpdate Stockā Unchecked:
When you create a purchase invoice without a purchase receipt and leave the āUpdate Stockā option unchecked, It uses a placeholder account called āStock Received But Not Billed.ā This account is used to record the value of items received but not yet billed through a purchase receipt. This approach allows the system to track the liability until the actual receipt is recorded, ensuring that the accounting entries reflect the correct status of the inventory and expenses.
With āUpdate Stockā Checked:
If you check the āUpdate Stockā option while creating the purchase invoice, the system assumes that the goods are being directly added to the inventory. In this case, It uses the āStock In Handā account to record the inventory value. This account is linked to the warehouse where the stock is stored, ensuring that the inventory is properly accounted for.
The system uses these accounts based on whether the stock has been physically received and accounted for, and whether it is being directly added to the inventory or pending receipt. This helps maintain accurate financial records and inventory tracking.
, but it seems that I was not understanding the logic, thank you very much