Non-Stock Item Creating COGS Entries and Stock Item Missing Inventory Entries - What Am I Missing?

ERPNext Accounting
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Hi everyone,

I’m dealing with an accounting issue in ERPNext that I can’t seem to figure out. Two specific items are behaving incorrectly and I’d appreciate any guidance on what might be causing this or how to fix it.

The Problem:

Item 1: “1501 large +tape combo” (Non-Stock Item) This is set to Maintain Stock = No. When I create a Sales Invoice with this item, it’s generating COGS and inventory adjustment entries. From my understanding, a non-stock item shouldn’t create these entries at all—just a simple revenue entry. Am I misunderstanding how non-stock items work?

Item 2: “2000 Bulilit box” (Stock Item) This is set to Maintain Stock = Yes. The COGS entry is being created correctly, but the corresponding inventory accounting entries are missing. This means my accounts aren’t balancing. What could cause the inventory side of the accounting entry to not post?

My Configuration:

  • Perpetual Inventory: Enabled

  • Valuation Method: FIFO

  • Chart of Accounts: Standard

What I’ve Already Checked:

  • All other items work fine

  • Settings appear correct

  • No custom scripts

Has anyone seen this behavior before? Is there something in the item configuration I’m overlooking, or could there be a settings issue elsewhere in the system? Any suggestions on where to look or what might be causing this would help a lot.

Thanks for any insights.

2

  1. The way I have understood from Perpetual Inventory when you enable Perpetual Inventory it means COGS entry are created for each transaction (purchase and sale). It has nothing to do with maintain stock. Try it on a dummy site

  2. Try to check in the item, company or stock settings - probably it is set to a provisional stock account (based on delivery note). The accounting always has to balance - click on the view button on the top odf the invoice - it will show you the accounting entries for that transaction