Hi Khurram
On 2017-01-12 06:32, Khurram Shahzad wrote: > > Dear All, > > > > We have started implementing the Purchases module at our hospital. > > > > I processed the first purchase in the system from Quote to Receive goods > > from Supplier. Then I posted the Supplier invoice and found following > move > > lines generated: > > 1. Main Payable (supplier account): credit $500 > > 2. Main Expense: credit $500 > > 3. Medicine Stock: debit $500 > > 4. Main Expense: debit $500 > > > > I am unable to understand why is Main Expense (which is set as Account > > Expense for the product purchased) is first credited and then debited by > > the same amount of $500? I think the lines 1 and 3 should be sufficient. > > > > Any thoughts? > It makes sens from an accounting point of view: 1/You first make a purchase: Main Payable is credited: $500 Expenses is debited: $500 2/You then transfer the goods in your warehouse: Medicine Stock debited: $500 (it increases) Main Expenses credited: $500 (you remove it as expenses so that it won't impact on your revenue statement) At the end you have the only 2 transactions that do matter: Main Payable is credited: $500 Medicine Stock debited: $500 (it increases) Kind regards, Armand -- You received this message because you are subscribed to the Google Groups "tryton" group. To view this discussion on the web visit https://groups.google.com/d/msgid/tryton/CAGb%2BB3c2cOAgvOY5LQFK6LFUUzh_iMwN3%2B1WiuoAJS%2Braxw3Dg%40mail.gmail.com.
