Merge pull request #49834 from rohitwaghchaure/feat-track-purchases

feat: track purchases in accounting and configure item / item group / brand wise COGS

erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py

@@ -884,6 +884,7 @@ class PurchaseInvoice(BuyingController):
 		self.make_write_off_gl_entry(gl_entries)
 		self.make_gle_for_rounding_adjustment(gl_entries)
 		self.set_transaction_currency_and_rate_in_gl_map(gl_entries)
+		self.set_gl_entry_for_purchase_expense(gl_entries)
 		return gl_entries
 
 	def check_asset_cwip_enabled(self):

erpnext/controllers/buying_controller.py

@@ -17,7 +17,7 @@ from erpnext.accounts.party import get_party_details
 from erpnext.buying.utils import update_last_purchase_rate, validate_for_items
 from erpnext.controllers.sales_and_purchase_return import get_rate_for_return
 from erpnext.controllers.subcontracting_controller import SubcontractingController
-from erpnext.stock.get_item_details import get_conversion_factor
+from erpnext.stock.get_item_details import get_conversion_factor, get_item_defaults
 from erpnext.stock.utils import get_incoming_rate
 
 
@@ -307,6 +307,60 @@ class BuyingController(SubcontractingController):
 					address_display_field, render_address(self.get(address_field), check_permissions=False)
 				)
 
+	def set_gl_entry_for_purchase_expense(self, gl_entries):
+		if self.doctype == "Purchase Invoice" and not self.update_stock:
+			return
+
+		for row in self.items:
+			details = get_purchase_expense_account(row.item_code, self.company)
+
+			if not details.purchase_expense_account:
+				details.purchase_expense_account = frappe.get_cached_value(
+					"Company", self.company, "purchase_expense_account"
+				)
+
+			if not details.purchase_expense_account:
+				return
+
+			if not details.purchase_expense_contra_account:
+				details.purchase_expense_contra_account = frappe.get_cached_value(
+					"Company", self.company, "purchase_expense_contra_account"
+				)
+
+			if not details.purchase_expense_contra_account:
+				frappe.throw(
+					_("Please set Purchase Expense Contra Account in Company {0}").format(self.company)
+				)
+
+			amount = flt(row.valuation_rate * row.stock_qty, row.precision("base_amount"))
+			self.add_gl_entry(
+				gl_entries=gl_entries,
+				account=details.purchase_expense_account,
+				cost_center=row.cost_center,
+				debit=amount,
+				credit=0.0,
+				remarks=_("Purchase Expense for Item {0}").format(row.item_code),
+				against_account=details.purchase_expense_contra_account,
+				account_currency=frappe.get_cached_value(
+					"Account", details.purchase_expense_account, "account_currency"
+				),
+				item=row,
+			)
+
+			self.add_gl_entry(
+				gl_entries=gl_entries,
+				account=details.purchase_expense_contra_account,
+				cost_center=row.cost_center,
+				debit=0.0,
+				credit=amount,
+				remarks=_("Purchase Expense for Item {0}").format(row.item_code),
+				against_account=details.purchase_expense_account,
+				account_currency=frappe.get_cached_value(
+					"Account", details.purchase_expense_contra_account, "account_currency"
+				),
+				item=row,
+			)
+
 	def set_total_in_words(self):
 		from frappe.utils import money_in_words
 
@@ -1171,3 +1225,33 @@ def validate_item_type(doc, fieldname, message):
 @erpnext.allow_regional
 def update_regional_item_valuation_rate(doc):
 	pass
+
+
+@frappe.request_cache
+def get_purchase_expense_account(item_code, company):
+	defaults = get_item_defaults(item_code, company)
+
+	details = frappe._dict(
+		{
+			"purchase_expense_account": defaults.get("purchase_expense_account"),
+			"purchase_expense_contra_account": defaults.get("purchase_expense_contra_account"),
+		}
+	)
+
+	if not details.purchase_expense_account:
+		details = frappe.db.get_value(
+			"Item Default",
+			{"parent": defaults.item_group, "company": company},
+			["purchase_expense_account", "purchase_expense_contra_account"],
+			as_dict=1,
+		) or frappe._dict({})
+
+	if not details.purchase_expense_account:
+		details = frappe.db.get_value(
+			"Item Default",
+			{"parent": defaults.brand, "company": company},
+			["purchase_expense_account", "purchase_expense_contra_account"],
+			as_dict=1,
+		)
+
+	return details or frappe._dict({})

erpnext/setup/doctype/company/company.js

@@ -278,6 +278,8 @@ erpnext.company.setup_queries = function (frm) {
 			["depreciation_expense_account", { root_type: "Expense", account_type: "Depreciation" }],
 			["disposal_account", { report_type: "Profit and Loss" }],
 			["default_inventory_account", { account_type: "Stock" }],
+			["purchase_expense_account", { root_type: "Expense" }],
+			["purchase_expense_contra_account", { root_type: "Expense" }],
 			["cost_center", {}],
 			["round_off_cost_center", {}],
 			["depreciation_cost_center", {}],

erpnext/setup/doctype/company/company.json

@@ -106,6 +106,10 @@
   "default_warehouse_for_sales_return",
   "credit_limit",
   "transactions_annual_history",
+  "purchase_expense_section",
+  "purchase_expense_account",
+  "column_break_ereg",
+  "purchase_expense_contra_account",
   "stock_tab",
   "auto_accounting_for_stock_settings",
   "enable_perpetual_inventory",
@@ -844,6 +848,27 @@
    "options": "Currency",
    "print_hide": 1,
    "read_only": 1
+  },
+  {
+   "fieldname": "purchase_expense_section",
+   "fieldtype": "Section Break",
+   "label": "Purchase Expense"
+  },
+  {
+   "fieldname": "column_break_ereg",
+   "fieldtype": "Column Break"
+  },
+  {
+   "fieldname": "purchase_expense_account",
+   "fieldtype": "Link",
+   "label": "Purchase Expense Account",
+   "options": "Account"
+  },
+  {
+   "fieldname": "purchase_expense_contra_account",
+   "fieldtype": "Link",
+   "label": "Purchase Expense Contra Account",
+   "options": "Account"
   }
  ],
  "icon": "fa fa-building",
@@ -851,7 +876,7 @@
  "image_field": "company_logo",
  "is_tree": 1,
  "links": [],
- "modified": "2025-08-25 18:34:03.602046",
+ "modified": "2025-10-01 17:34:10.971627",
  "modified_by": "Administrator",
  "module": "Setup",
  "name": "Company",

erpnext/setup/doctype/company/company.py

@@ -86,6 +86,8 @@ class Company(NestedSet):
 		parent_company: DF.Link | None
 		payment_terms: DF.Link | None
 		phone_no: DF.Data | None
+		purchase_expense_account: DF.Link | None
+		purchase_expense_contra_account: DF.Link | None
 		reconcile_on_advance_payment_date: DF.Check
 		reconciliation_takes_effect_on: DF.Literal[
 			"Advance Payment Date", "Oldest Of Invoice Or Advance", "Reconciliation Date"

erpnext/stock/doctype/item/item.js

@@ -488,6 +488,21 @@ $.extend(erpnext.item, {
 				},
 			};
 		});
+
+		let fields = ["purchase_expense_account", "purchase_expense_contra_account", "default_cogs_account"];
+
+		fields.forEach((field) => {
+			frm.set_query(field, "item_defaults", (doc, cdt, cdn) => {
+				let row = locals[cdt][cdn];
+				return {
+					filters: {
+						company: row.company,
+						root_type: "Expense",
+						is_group: 0,
+					},
+				};
+			});
+		});
 	},
 
 	make_dashboard: function (frm) {

erpnext/stock/doctype/item/item.json

@@ -16,20 +16,22 @@
   "item_name",
   "item_group",
   "stock_uom",
+  "opening_stock",
+  "valuation_rate",
+  "standard_rate",
   "column_break0",
   "disabled",
   "allow_alternative_item",
   "is_stock_item",
   "has_variants",
-  "opening_stock",
-  "valuation_rate",
-  "standard_rate",
   "is_fixed_asset",
   "auto_create_assets",
   "is_grouped_asset",
   "asset_category",
   "asset_naming_series",
+  "section_break_znra",
   "over_delivery_receipt_allowance",
+  "column_break_wugd",
   "over_billing_allowance",
   "image",
   "section_break_11",
@@ -63,6 +65,8 @@
   "column_break_37",
   "has_serial_no",
   "serial_no_series",
+  "defaults_tab",
+  "item_defaults",
   "variants_section",
   "variant_of",
   "variant_based_on",
@@ -74,8 +78,6 @@
   "column_break_9s9o",
   "enable_deferred_revenue",
   "no_of_months",
-  "section_break_avcp",
-  "item_defaults",
   "purchasing_tab",
   "purchase_uom",
   "min_order_qty",
@@ -887,10 +889,6 @@
    "fieldname": "column_break_9s9o",
    "fieldtype": "Column Break"
   },
-  {
-   "fieldname": "section_break_avcp",
-   "fieldtype": "Section Break"
-  },
   {
    "collapsible": 1,
    "fieldname": "deferred_accounting_section",
@@ -936,6 +934,19 @@
    "fieldname": "production_capacity",
    "fieldtype": "Int",
    "label": "Production Capacity"
+  },
+  {
+   "fieldname": "defaults_tab",
+   "fieldtype": "Tab Break",
+   "label": "Defaults"
+  },
+  {
+   "fieldname": "section_break_znra",
+   "fieldtype": "Section Break"
+  },
+  {
+   "fieldname": "column_break_wugd",
+   "fieldtype": "Column Break"
   }
  ],
  "icon": "fa fa-tag",
@@ -943,7 +954,7 @@
  "image_field": "image",
  "links": [],
  "make_attachments_public": 1,
- "modified": "2025-08-14 23:35:56.293048",
+ "modified": "2025-10-01 16:58:40.946604",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Item",

erpnext/stock/doctype/item/test_item.py

@@ -305,6 +305,7 @@ class TestItem(IntegrationTestCase):
 						"company": "_Test Company",
 						"default_warehouse": "_Test Warehouse 2 - _TC",  # no override
 						"expense_account": "_Test Account Stock Expenses - _TC",  # override brand default
+						"default_cogs_account": "_Test Account Cost for Goods Sold - _TC",  # override brand default
 						"buying_cost_center": "_Test Write Off Cost Center - _TC",  # override item group default
 					}
 				],
@@ -315,7 +316,7 @@ class TestItem(IntegrationTestCase):
 			"item_code": "Test Item With Defaults",
 			"warehouse": "_Test Warehouse 2 - _TC",  # from item
 			"income_account": "_Test Account Sales - _TC",  # from brand
-			"expense_account": "_Test Account Stock Expenses - _TC",  # from item
+			"expense_account": "_Test Account Cost for Goods Sold - _TC",  # from item
 			"cost_center": "_Test Cost Center 2 - _TC",  # from item group
 		}
 		sales_item_details = get_item_details(

erpnext/stock/doctype/item_default/item_default.json

@@ -16,10 +16,15 @@
   "column_break_8",
   "expense_account",
   "default_provisional_account",
+  "column_break_cpif",
+  "purchase_expense_account",
+  "purchase_expense_contra_account",
   "selling_defaults",
   "selling_cost_center",
   "column_break_12",
   "income_account",
+  "cost_of_good_sold_section",
+  "default_cogs_account",
   "deferred_accounting_defaults_section",
   "deferred_expense_account",
   "column_break_kwad",
@@ -111,7 +116,7 @@
   {
    "fieldname": "default_provisional_account",
    "fieldtype": "Link",
-   "label": "Default Provisional Account",
+   "label": "Default Provisional Account (Service)",
    "options": "Account"
   },
   {
@@ -136,19 +141,47 @@
   {
    "fieldname": "column_break_kwad",
    "fieldtype": "Column Break"
+  },
+  {
+   "fieldname": "column_break_cpif",
+   "fieldtype": "Column Break"
+  },
+  {
+   "fieldname": "cost_of_good_sold_section",
+   "fieldtype": "Section Break",
+   "label": "Cost of Goods Sold"
+  },
+  {
+   "fieldname": "default_cogs_account",
+   "fieldtype": "Link",
+   "label": "Default COGS Account",
+   "options": "Account"
+  },
+  {
+   "fieldname": "purchase_expense_account",
+   "fieldtype": "Link",
+   "label": "Purchase Expense Account",
+   "options": "Account"
+  },
+  {
+   "fieldname": "purchase_expense_contra_account",
+   "fieldtype": "Link",
+   "label": "Purchase Expense Contra Account",
+   "options": "Account"
   }
  ],
  "istable": 1,
  "links": [],
- "modified": "2025-03-17 13:46:09.719105",
+ "modified": "2025-10-01 19:17:33.687836",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Item Default",
  "owner": "Administrator",
  "permissions": [],
  "quick_entry": 1,
+ "row_format": "Dynamic",
  "sort_field": "creation",
  "sort_order": "DESC",
  "states": [],
  "track_changes": 1
-}
+}

erpnext/stock/doctype/item_default/item_default.py

@@ -16,6 +16,7 @@ class ItemDefault(Document):
 
 		buying_cost_center: DF.Link | None
 		company: DF.Link
+		default_cogs_account: DF.Link | None
 		default_discount_account: DF.Link | None
 		default_price_list: DF.Link | None
 		default_provisional_account: DF.Link | None
@@ -28,6 +29,8 @@ class ItemDefault(Document):
 		parent: DF.Data
 		parentfield: DF.Data
 		parenttype: DF.Data
+		purchase_expense_account: DF.Link | None
+		purchase_expense_contra_account: DF.Link | None
 		selling_cost_center: DF.Link | None
 	# end: auto-generated types
 

erpnext/stock/doctype/purchase_receipt/purchase_receipt.py

@@ -479,6 +479,7 @@ class PurchaseReceipt(BuyingController):
 
 		self.make_item_gl_entries(gl_entries, warehouse_account=warehouse_account)
 		self.make_tax_gl_entries(gl_entries, via_landed_cost_voucher)
+		self.set_gl_entry_for_purchase_expense(gl_entries)
 		update_regional_gl_entries(gl_entries, self)
 
 		return process_gl_map(gl_entries, from_repost=frappe.flags.through_repost_item_valuation)

erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py

@@ -4415,6 +4415,69 @@ class TestPurchaseReceipt(IntegrationTestCase):
 
 		self.assertEqual(srbnb_cost, 1000)
 
+	def test_purchase_expense_account(self):
+		item = "Test Item with Purchase Expense Account"
+		make_item(item, {"is_stock_item": 1})
+		company = "_Test Company with perpetual inventory"
+
+		expense_account = "_Test Account Purchase Expense - TCP1"
+		expense_contra_account = "_Test Account Purchase Contra Expense - TCP1"
+		if not frappe.db.exists("Account", expense_account):
+			frappe.get_doc(
+				{
+					"doctype": "Account",
+					"account_name": "_Test Account Purchase Expense",
+					"parent_account": "Stock Expenses - TCP1",
+					"company": company,
+					"is_group": 0,
+					"root_type": "Expense",
+				}
+			).insert()
+
+		if not frappe.db.exists("Account", expense_contra_account):
+			frappe.get_doc(
+				{
+					"doctype": "Account",
+					"account_name": "_Test Account Purchase Contra Expense",
+					"parent_account": "Stock Expenses - TCP1",
+					"company": company,
+					"is_group": 0,
+					"root_type": "Expense",
+				}
+			).insert()
+
+		item_doc = frappe.get_doc("Item", item)
+		item_doc.append(
+			"item_defaults",
+			{
+				"company": company,
+				"default_warehouse": "Stores - TCP1",
+				"purchase_expense_account": expense_account,
+				"purchase_expense_contra_account": expense_contra_account,
+			},
+		)
+
+		item_doc.save()
+
+		pr = make_purchase_receipt(
+			item_code=item,
+			qty=10,
+			rate=100,
+			company=company,
+			warehouse="Stores - TCP1",
+		)
+
+		gl_entries = get_gl_entries(pr.doctype, pr.name)
+		accounts = [d.account for d in gl_entries]
+		self.assertTrue(expense_account in accounts)
+		self.assertTrue(expense_contra_account in accounts)
+
+		for row in gl_entries:
+			if row.account == expense_account:
+				self.assertEqual(row.debit, 1000)
+			if row.account == expense_contra_account:
+				self.assertEqual(row.credit, 1000)
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier

erpnext/stock/get_item_details.py

@@ -868,6 +868,19 @@ def get_default_income_account(ctx: ItemDetailsCtx, item, item_group, brand):
 
 
 def get_default_expense_account(ctx: ItemDetailsCtx, item, item_group, brand):
+	if ctx.get("doctype") in ["Sales Invoice", "Delivery Note"]:
+		expense_account = (
+			item.get("default_cogs_account")
+			or item_group.get("default_cogs_account")
+			or brand.get("default_cogs_account")
+		)
+
+		if not expense_account:
+			expense_account = frappe.get_cached_value("Company", ctx.company, "default_expense_account")
+
+		if expense_account:
+			return expense_account
+
 	return (
 		item.get("expense_account")
 		or item_group.get("expense_account")