Hi there, albitermaldives. The behavior you are observing is correct and is not due to any setup issue, nor is it related to the two inventory asset accounts that previously existed. I'll explain this further below.

When you use an expense with item details, the inventory quantity increases instead of decreasing because the system recognizes an expense transaction as adding inventory, similar to a purchase. It does not decrease the inventory since the transaction type does not indicate an outgoing sale or consumption.

To decrease the inventory quantity, you can use a sales transaction, such as an Invoice or Sales Receipt. These transactions lower inventory levels because they represent items being sold or moved from stock for external use

If you're using inventory for internal projects and need to reduce quantities, a better option would be to make an inventory adjustment to reflect reductions for internal use and other purposes, ensuring your records remain precise.

Here's how:

1. Go to + Create, then select Inventory qty adjustment.
2. To adjust multiple items, use Batch actions in Products and services or Products/Variant.
3. Enter the Adjustment date.
4. Choose the correct account from the Inventory adjustment account dropdown.
5. Update the quantity for each item (either the new quantity or the change in quantity).
6. Add details in the Memo field about the adjustment.
7. Select Save and close.
   
   
   

Please leave a comment below if you have additional questions or concerns. We are here to help.