By Umair on January 14, 2020
Intermediate
Question: We have enabled Perpetual Inventory in the Company master. Still, in some Purchase Invoice, posting if done in the Expense Account.

Answer:

As per the perpetual inventory, when item is a stock item, then only it's value is booked under Stock-in-hand at the time of Purchase. In this case, the posting in the GL Entry for Purchase Invoice will be as follows.
AccountDebitCredit
Creditors
100
Stock Received but not Billed90
Tax10



Perpetual Inventory doesn't apply on the non-stock item, and expense is booked for them as soon as Purchase Invoice is submitted. The posting in General Ledger for in this scenario will look like:
AccountDebitCredit
Creditors
100
COGS / Other Expense Account90
Tax10




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