Item Category selected in Bills
Can someone please tell me which Category should be selected in a Bill for purchasing Inventory Items? I have some Bills that have selected the Asset Account Inventory and some that have selected th...
Forum Discussion
Hi Princess,
Thank you for responding. I don't have an accountant and I have reached out to MYOB support but have not had a response. I have set an asset account for Inventory. My question is when I create a supplier bill for items that are in my inventory what category should be selected and showing in the bill. Should the category be my Inventory account or should it be my cost of good sold account, Purchases? I have checked out your video on creating items and I have followed it to make sure my items are coded correctly, I think my negative inventory is happening due to errors in my Bills and Inventory Adjustments.
Hi Donna_L,
This can be a bit tricky since it involves accounting knowledge, but to give you an idea—when entering a supplier bill for inventory items in you should allocate it to your Inventory account, not the Cost of Goods Sold (COGS) or Purchases account. This makes sure your inventory value updates correctly when you receive new stock.
Here are some helpful guides you might find useful:
Managing linked categories
Entering bills
Regards,
Earl
