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
Thanks Earl, I have one last question. I think where I have come unstuck is when I have created the supplier contact. In the create supplier screen, it asks for the "expense account" for all purchases for this supplier and the Inventory Asset account is not an expense account. So when I create a bill for a supplier the Purchases COGS account is already preselected as that is the "expense account" I assigned to the supplier. Should I go back in and change each Supplier contact to the Inventory account, even though it is an Asset account not an expense account?
Hi Donna_L,
You're right that the "expense account" field in the supplier setup is for an expense-type account, which is why it defaults to COGS when you create a bill. Since Inventory Asset is a balance sheet account (not an expense), it can't be used there.
If you're buying inventory items, it should automatically allocate them to the correct accounts based on the item setup. So rather than changing all your suppliers to the Inventory Asset account, I'd recommend just selecting the right account manually when entering a bill especially if you're using items linked to inventory.
If you still need help with this, reach out to our live chat support through our virtual assistant MOCA or submit a case via MyAccount.
