Purchase Invoice - Account Type Error
On saving the Purchase Invoice, I am getting a validation message that Credit To Account must be a Balance Sheet account.
Please ensure the Credit To account is a Balance Sheet account. You can change the parent account to a Balance Sheet account or select a different account.
Answer:
On submission of a Purchase Invoice, payable is updated towards the Supplier. As per the accounting standards, Payable Account is aligned under Current Liability (credit side of Balance Sheet).
The error message indicates that the Account selected in the Credit To field doesn't belong to the Liability Group. Please ensure that the Payable Account selected in the Purchase Invoice is located under the Liability group.
