'If the misc receipt is into an expense subinventory distributions are NOT created'

Hi ,

I need to know what should be the accounting entry for miscellaneous receipt. Here the destination subinventory is 'Expense Sub-Inventory'.

As per the standard functionality 'If the misc receipt is into an expense subinventory distributions are NOT created'.

 
Wouldn’t there be an expense that would generate? Where does the inventory cost go that was moved as misc receipt

Pls help me to understand this issue. Will be waiting for your reply.

Regards

Naveen