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Account type of 'Purchase Balance Account'

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Hi,

I'm a SAP Business One user.

Due to to the company detail setting:

  • the continuous stock; and
  • 'Use Purchase Accounts Posting System',

I need to set up 'Purchase Balance Account' to create a credit memo for inventory purchased.

Having understood that

'Purchase Balance' account is credited or debited to reflect any variance between the purchase account and the cost-of-goods-purchased account,

I wonder if I need to set up the account under

  • Current Asset;
  • Cost of Goods Sold; or
  • Something else.

If I'm in a situation where applying a full credit to an invoice for goods purchased, the purchase quantity will be fully reversed (no inventory) so I assume the purchase balance should be recorded as an positive or negative expense.

If anyone is familiar with the account setting, please give me an advice.

Thank you

Former Member
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Thank you for visiting SAP Community to get answers to your questions. Since this is your first question, I recommend that you familiarize yourself with: https://community.sap.com/resources/questions-and-answers, as the overview provides tips for preparing questions that draw responses from our members.

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