diff --git a/models/baseModels/Item/Item.ts b/models/baseModels/Item/Item.ts
index d921974b..d1aa2e44 100644
--- a/models/baseModels/Item/Item.ts
+++ b/models/baseModels/Item/Item.ts
@@ -8,13 +8,14 @@ import {
   HiddenMap,
   ListViewSettings,
   ReadOnlyMap,
-  ValidationMap
+  ValidationMap,
 } from 'fyo/model/types';
 import { ValidationError } from 'fyo/utils/errors';
 import { Money } from 'pesa';
 import { AccountRootTypeEnum, AccountTypeEnum } from '../Account/types';
 
 export class Item extends Doc {
+  trackItem?: boolean;
   itemType?: 'Product' | 'Service';
 
   formulas: FormulaMap = {
@@ -32,6 +33,11 @@ export class Item extends Doc {
     },
     expenseAccount: {
       formula: async () => {
+        if (this.trackItem) {
+          return this.fyo.singles.InventorySettings
+            ?.stockReceivedButNotBilled as string;
+        }
+
         const cogs = await this.fyo.db.getAllRaw('Account', {
           filters: {
             accountType: AccountTypeEnum['Cost of Goods Sold'],
@@ -44,7 +50,7 @@ export class Item extends Doc {
           return cogs[0].name as string;
         }
       },
-      dependsOn: ['itemType'],
+      dependsOn: ['itemType', 'trackItem'],
     },
   };
 
@@ -53,9 +59,11 @@ export class Item extends Doc {
       isGroup: false,
       rootType: AccountRootTypeEnum.Income,
     }),
-    expenseAccount: () => ({
+    expenseAccount: (doc) => ({
       isGroup: false,
-      rootType: AccountRootTypeEnum.Expense,
+      rootType: doc.trackItem
+        ? AccountRootTypeEnum.Liability
+        : AccountRootTypeEnum.Expense,
     }),
   };
 
diff --git a/reports/inventory/StockLedger.ts b/reports/inventory/StockLedger.ts
index f41e1b39..7d9e9bc6 100644
--- a/reports/inventory/StockLedger.ts
+++ b/reports/inventory/StockLedger.ts
@@ -2,6 +2,7 @@ import { Fyo, t } from 'fyo';
 import { Action } from 'fyo/model/types';
 import { cloneDeep } from 'lodash';
 import { DateTime } from 'luxon';
+import { ValuationMethod } from 'models/inventory/types';
 import { ModelNameEnum } from 'models/types';
 import getCommonExportActions from 'reports/commonExporter';
 import { Report } from 'reports/Report';
@@ -76,8 +77,13 @@ export class StockLedger extends Report {
   }
 
   async _setRawData() {
+    const valuationMethod =
+      (this.fyo.singles.InventorySettings?.valuationMethod as
+        | ValuationMethod
+        | undefined) ?? ValuationMethod.FIFO;
+
     const rawSLEs = await getRawStockLedgerEntries(this.fyo);
-    this._rawData = getStockLedgerEntries(rawSLEs);
+    this._rawData = getStockLedgerEntries(rawSLEs, valuationMethod);
   }
 
   _getFilteredRawData(rawData: ComputedStockLedgerEntry[]) {
diff --git a/reports/inventory/helpers.ts b/reports/inventory/helpers.ts
index 7fdef982..e81ecb4e 100644
--- a/reports/inventory/helpers.ts
+++ b/reports/inventory/helpers.ts
@@ -1,5 +1,6 @@
 import { Fyo } from 'fyo';
 import { StockQueue } from 'models/inventory/stockQueue';
+import { ValuationMethod } from 'models/inventory/types';
 import { ModelNameEnum } from 'models/types';
 import { safeParseFloat, safeParseInt } from 'utils/index';
 import { ComputedStockLedgerEntry, RawStockLedgerEntry } from './types';
@@ -24,7 +25,8 @@ export async function getRawStockLedgerEntries(fyo: Fyo) {
 }
 
 export function getStockLedgerEntries(
-  rawSLEs: RawStockLedgerEntry[]
+  rawSLEs: RawStockLedgerEntry[],
+  valuationMethod: ValuationMethod
 ): ComputedStockLedgerEntry[] {
   type Item = string;
   type Location = string;
@@ -60,7 +62,11 @@ export function getStockLedgerEntries(
     }
 
     const balanceQuantity = q.quantity;
-    const valuationRate = q.fifo;
+    let valuationRate = q.fifo;
+    if (valuationMethod === ValuationMethod.MovingAverage) {
+      valuationRate = q.movingAverage;
+    }
+
     const balanceValue = q.value;
     const valueChange = balanceValue - initialValue;
 
diff --git a/schemas/app/Item.json b/schemas/app/Item.json
index 152eb6a0..23a30650 100644
--- a/schemas/app/Item.json
+++ b/schemas/app/Item.json
@@ -71,7 +71,7 @@
     },
     {
       "fieldname": "incomeAccount",
-      "label": "Income",
+      "label": "Sales Acc.",
       "fieldtype": "Link",
       "target": "Account",
       "placeholder": "Income",
@@ -80,7 +80,7 @@
     },
     {
       "fieldname": "expenseAccount",
-      "label": "Expense",
+      "label": "Purchase Acc.",
       "fieldtype": "Link",
       "target": "Account",
       "placeholder": "Expense",