Stock Received But Not Billed

When goods arrive before the supplier's bill, the warehouse must show the stock at once but there is no invoice to post to Creditors. The Purchase Receipt therefore debits Stock In Hand and credits this holding account; when the Purchase Invoice is made from the receipt, it debits this account and credits Creditors, clearing the balance. Any amount still here at a reporting date is stock on the shelf that the supplier has not yet charged for, so it is shown as a liability. The balance should be small and short-lived; a stale figure usually means a bill was entered fresh instead of being pulled from the Purchase Receipt, which also doubles the purchase.

Balance = Purchase Receipt values not yet matched by a Purchase Invoice

1. 01Go to Stock > Purchase Receipt > New, pick the supplier, add the items and quantities received.
2. 02Submit. The entry below posts and the goods appear in the warehouse.
3. 03When the bill arrives, open the Purchase Receipt and click Create > Purchase Invoice.
4. 04Check the amounts, enter the supplier's invoice number and submit; the balance moves to Creditors.
5. 05Run Financial Reports > General Ledger on this account each month; it should be near zero.

Posted automatically by Purchase Receipt and reversed by the matching Purchase Invoice. Review any balance at month end.

Purchase Receipt: Dr Stock In Hand Rs 60,000, Cr Stock Received But Not Billed Rs 60,000 for trekking gear received before the bill.