Treatment of Self-Billed Invoices in Inventory and Cost of Goods Sold.
Inventory Impact
Self-billed invoices are not recorded in the stock card.
Since no quantity is captured (0 quantity × price), the system does not calculate any cost for inventories.
As a result, these invoices do not affect the cost of inventories.
Post-Transaction Impact
Once the transaction is posted, the amount is recognized as Purchases in the Cost of Goods Sold (COGS).
The posting acts as an adjustment to cost rather than inventory valuation.
Financial Statement Impact
This adjustment is reflected under Cost of Goods Sold in the Profit and Loss account.