Inventory account in expenditure
Can we maintain the inventory account in expenditure.Since expenditure accounts become zero at the end of the year is it advisable
Peter Juby replied
Under Administration > System Initialization > Company Details > Basic Initialization, there is an option called "Use Purchase Accounts Posting System". When you select this at implementation time, you then define 2 G/L accounts under Cost of Sales (or expenses if you prefer), and all purchases will be posted to Trading Stock, Purchases account and Purchases Offset account. The Purchases and Purchases Offset account will balance to zero by always debiting one and crediting the other.