We regularly make purchases (via purchase orders for non-inventory items) that are part of work in progress.

Once the sale is complete then these amounts will be moved to cost of sales. So, I need to create an asset account that is included in the VAT return to hold these purchases. Currently, for some reason, this doesn't seem possible so I've had to create a current liability account for this which will be negative on the balance sheet...

This seems like a fairly simple thing to implement, and kind of confusing that it's not currently possible.