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Vendor credit not impacting inventory stock value

in Accounting / ERP

Hello,

When we have a credit from vendor, it is impacting the P/L account but I am expecting the value of inventory stock on the balance sheet to change too. This doesn't happen automatically and I am currently resorting to a Journal Entry. Is this by design, or am I missing something in the process? The Vendor Credit is created directly from Vendor Bill.

Thanks,
Riaz G

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