Hi! I've been perfecting the workflow of A/P and saw your question so I thought I would answer. To record the purchase correctly as the transaction comes through the bank feed you would post to inventory, not an expense account. When the product is sold, on an invoice, the item will be moved from inventory to Cost of Goods Sold.
The correct workflow for a purchase is: (1) Enter a Purchase Order with Quantity and Amount on order (2) When the PO is fulfilled enter a Bill and match to the PO (3) When you know the Bill has been paid, mark the Bill 'paid' making sure that the correct payment bank account and date is selected (4) When the payment comes through the bank feed you will match that Bill Payment to the transaction in the banking center.
I hope that answers your question.
Priscilla @ bookkeepingbusinessonline.com
