Purchase Default in Vendor Maintenance

[MannyM]

I am setting up a new company. Can someone please tell me which of the following GL accounts is the "Purchase Default" in Vendor Maintenance is equivalent to:

1) Cost of Goods Sold in Income Statement ; or
2) Inventory Purchases in Income Statement ; or
3) Ending Inventory in Balance Sheet

thanks

MannyM

[TheWolf]

If you were to do a non item expense what GL acct would you want it to post to? That would be the one you want to select. Inventory items hold the other info, not vendor records.

[MannyM]

Sorry, but that still does not answer my question, since I am not talking about a "non-item" expense here. I am specifically talking about goods that we purchase for resale to our customers. So when we buy something for resale, that increases our cost of goods sold but also adds to our ending inventory in case it doesn't get sold. And of course it is also inventory purchases. So which account is the correct account?

[TheWolf]

Then it does not matter what you set it to as the GL accts in Inventory items will override it anyway. That is for vendors that you do not get items from (utility companies, contract work, etc.). I set that to a misc exp account when I set up companies for clients.

[MannyM]

Sorry, but it does matter. We are getting erroneous results in our financial statements because of this. Help !!!

[TheWolf]

Then apparently something is set up incorrectly. Good luck with that.