@Jax
"Then when I purchase the vehicle, I start by creating a bill and in the item detail section I select add new and then is here I enter the vehicle information. The income account is sales of product income and the expense is Inventory purchase (expense account) quantity on hand is 0."
First, make sure you're not running your P&L report on cash basis. If you run it on cash basis, it will expense the vehicle cost as of the date of the bill payment. That's not proper for businesses that carry inventory.
When you select '+Add new' on the bill, are you selecting an inventory product, not a non-inventory or service product? When you select an inventory product, you have to choose three accounts: 1) the inventory asset account, 2) the income account, and 3) the expense account. The expense account should be COGS, not Inventory Purchase (expense). Also, you want to enter 0 as the initial quantity on had since you are entering the item on the bill. Forgive me if you know this but inventory is expensed when sold, not when purchased so an 'Inventory Purchased' expense account is not correct. You should be setting up an inventory product for each vehicle and running your P&L on accrual basis. That will keep the cost of the vehicle in your inventory asset account until sold, at which point, it will move the cost out of inventory on your balance sheet and into COGS on your P&L.
