In the top-right corner the OpenERP search box, we can see that the view is limited to the Account Payable account. If we click on the small close box on the Account Payable filter in the search view, we can see all the journal items.
If you look carefully at the new list of journal items, you will see there are two additional transactions.
One of these transactions is a $114.00 debit to the 529000 Purchases – Resale Items account. As we discussed previously, when the purchase order was invoiced, OpenERP credited $114.00 to Account Payable. At the same time, OpenERP creates the $114.00 debit to the 529000 Purchases account. This is known as double-entry accounting. The result is that we can look at account 529000 to see the total of our purchases.
When we paid the invoice, OpenERP created the $114.00 debit to Accounts Payable to account for the fact the company no longer has $114.00 in accounts payable liability. At the same time, OpenERP credited the account...