Purpose of Stock Received but not Billed

Purpose of Stock Received but not Billed An accounting posting is made based on the value of the purchased products in the Stock-in-Hand/Fixed Assets account when the purchased items are received. An expense (cost-of-goods-sold) equal to the cost of the items' purchase is recorded when you sell and deliver those items.

The Warehouse account is debited and the Stock Received But Not Billed account is credited as the stock balance rises through Purchase Receipt. In order to avoid double cost booking, the negative expense is recorded concurrently in the account head with the category "Valuation" or "Total and Valuation" in the taxes and charges table for the amount added for valuation purposes.

You will issue a purchase invoice in response to a purchase receipt after the supplier sends you a bill. The balance in the Stock Received But Not Billed Account is cancelled in this instance because the Stock Received But Not Billed Account has been debited.

The amount of goods for which a purchase receipt has been issued but billing is still pending is shown by the balance in the stock received but not yet billed account.