When the invoice is paid, the encumbrance created when the invoice was processed is reversed and the payment is expensed to the Purchases for Resale account. The Purchases for Resale account (event ID A040) is debited and the Cash account is credited for the amount of the invoice. The GL effective date is the payment date.

Note: Budgets for inventory are established in the Purchases for Resale account (73XXXX accounts), which is the account (53XXXX) that defaults to requisitions and purchase orders for stock items.