Perpetual Inventory for Non-stock Item
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 an item is a stock item, then only its 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.
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:
