So the IR credits 23001 Accrued Expenses : Accrued Expenses - KAAT, but that does exist anywhere on the item or vendor record. in the vendor record: DEFAULTS PAYABLE = 20001 Accounts Payable DEFALT EXPENSE ACCOUNT = blank. In the item record COGS ACCOUNT = 50110 COGS : Cabinetry : Cabinets ASSET ACCOUNT = 12100 Inventory Assets : Inventory-Cabinets INCOME ACCOUNT = 40110 Sales : Cabinetry : Cabinets GAIN/LOSS ACCOUNT = Use Income Account