Purchase Expense Booking Process

To maintain accurate stock quantities in ERPNext while correctly booking expenses in accounts.

Use Case

This process is used when :

1. Inventory (Consumables) quantity needs to be tracked
2. Expense needs to be booked immediately after purchase.
3. Stock valuation impact is not required, or expenses should not be delayed until the time of consumption.

Detailed Steps

1. Create a Purchase Receipt (consumable items) and the stock will updated as usual. Stock ledger:

2. Stock Reconciliation:

   1. Select item and warehosue, Set Valuation Rate = 0 and Select difference expense account.
   2. Save and Submit. Stock Entry after stock reconciliation: General Ledger:

3. Material Issue entry: Stock ledger:

Reports

1. Stock Balance Report
2. Stock Ledger
3. General Ledger

Outcome:

1. Stock quantity is updated
2. Proper expense booking in accounts
3. No inventory valuation impact
4. Alignment between stock and financial records

Key Notes

1. Zero valuation is recommended only for expense tracking, not for inventory valuation
2. Ensure correct expense account mapping.

Conclusion

This process ensures inventory control without impacting valuation when only quantity tracking is required.