diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index 2f08b65..97ee5cc 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -585,13 +585,12 @@
 
 	def get_gl_entries(self, warehouse_account=None):
 		self.auto_accounting_for_stock = erpnext.is_perpetual_inventory_enabled(self.company)
+		self.asset_received_but_not_billed = self.get_company_default("asset_received_but_not_billed")
+
 		if self.auto_accounting_for_stock:
 			self.stock_received_but_not_billed = self.get_company_default("stock_received_but_not_billed")
-			self.expenses_included_in_valuation = self.get_company_default("expenses_included_in_valuation")
-			self.asset_received_but_not_billed = self.get_company_default("asset_received_but_not_billed")
 		else:
 			self.stock_received_but_not_billed = None
-			self.expenses_included_in_valuation = None
 
 		self.negative_expense_to_be_booked = 0.0
 		gl_entries = []
@@ -913,40 +912,6 @@
 									)
 								)
 
-					# If asset is bought through this document and not linked to PR
-					if self.update_stock and item.landed_cost_voucher_amount:
-						expenses_included_in_asset_valuation = self.get_company_default(
-							"expenses_included_in_asset_valuation"
-						)
-						# Amount added through landed-cost-voucher
-						gl_entries.append(
-							self.get_gl_dict(
-								{
-									"account": expenses_included_in_asset_valuation,
-									"against": expense_account,
-									"cost_center": item.cost_center,
-									"remarks": self.get("remarks") or _("Accounting Entry for Stock"),
-									"credit": flt(item.landed_cost_voucher_amount),
-									"project": item.project or self.project,
-								},
-								item=item,
-							)
-						)
-
-						gl_entries.append(
-							self.get_gl_dict(
-								{
-									"account": expense_account,
-									"against": expenses_included_in_asset_valuation,
-									"cost_center": item.cost_center,
-									"remarks": self.get("remarks") or _("Accounting Entry for Stock"),
-									"debit": flt(item.landed_cost_voucher_amount),
-									"project": item.project or self.project,
-								},
-								item=item,
-							)
-						)
-
 						# update gross amount of asset bought through this document
 						assets = frappe.db.get_all(
 							"Asset", filters={"purchase_invoice": self.name, "item_code": item.item_code}
diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 1647732..231b3bf 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -2500,12 +2500,6 @@
 			"stock_received_but_not_billed",
 			"Stock Received But Not Billed - _TC1",
 		)
-		frappe.db.set_value(
-			"Company",
-			"_Test Company 1",
-			"expenses_included_in_valuation",
-			"Expenses Included In Valuation - _TC1",
-		)
 
 		# begin test
 		si = create_sales_invoice(
@@ -2545,36 +2539,6 @@
 		frappe.local.enable_perpetual_inventory["_Test Company 1"] = old_perpetual_inventory
 		frappe.db.set_single_value("Stock Settings", "allow_negative_stock", old_negative_stock)
 
-	def test_sle_for_target_warehouse(self):
-		se = make_stock_entry(
-			item_code="138-CMS Shoe",
-			target="Finished Goods - _TC",
-			company="_Test Company",
-			qty=1,
-			basic_rate=500,
-		)
-
-		si = frappe.copy_doc(test_records[0])
-		si.update_stock = 1
-		si.set_warehouse = "Finished Goods - _TC"
-		si.set_target_warehouse = "Stores - _TC"
-		si.get("items")[0].warehouse = "Finished Goods - _TC"
-		si.get("items")[0].target_warehouse = "Stores - _TC"
-		si.insert()
-		si.submit()
-
-		sles = frappe.get_all(
-			"Stock Ledger Entry", filters={"voucher_no": si.name}, fields=["name", "actual_qty"]
-		)
-
-		# check if both SLEs are created
-		self.assertEqual(len(sles), 2)
-		self.assertEqual(sum(d.actual_qty for d in sles), 0.0)
-
-		# tear down
-		si.cancel()
-		se.cancel()
-
 	def test_internal_transfer_gl_entry(self):
 		si = create_sales_invoice(
 			company="_Test Company with perpetual inventory",
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 0231668..229f885 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -1196,12 +1196,12 @@
 def add_additional_cost(stock_entry, work_order):
 	# Add non stock items cost in the additional cost
 	stock_entry.additional_costs = []
-	expenses_included_in_valuation = frappe.get_cached_value(
-		"Company", work_order.company, "expenses_included_in_valuation"
+	default_expense_account = frappe.get_cached_value(
+		"Company", work_order.company, "default_expense_account"
 	)
 
-	add_non_stock_items_cost(stock_entry, work_order, expenses_included_in_valuation)
-	add_operations_cost(stock_entry, work_order, expenses_included_in_valuation)
+	add_non_stock_items_cost(stock_entry, work_order, default_expense_account)
+	add_operations_cost(stock_entry, work_order, default_expense_account)
 
 
 def add_non_stock_items_cost(stock_entry, work_order, expense_account):
diff --git a/erpnext/patches/v12_0/set_expense_account_in_landed_cost_voucher_taxes.py b/erpnext/patches/v12_0/set_expense_account_in_landed_cost_voucher_taxes.py
deleted file mode 100644
index 9588e02..0000000
--- a/erpnext/patches/v12_0/set_expense_account_in_landed_cost_voucher_taxes.py
+++ /dev/null
@@ -1,42 +0,0 @@
-import frappe
-
-
-def execute():
-	frappe.reload_doctype("Landed Cost Taxes and Charges")
-
-	company_account_map = frappe._dict(
-		frappe.db.sql(
-			"""
-		SELECT name, expenses_included_in_valuation from `tabCompany`
-	"""
-		)
-	)
-
-	for company, account in company_account_map.items():
-		frappe.db.sql(
-			"""
-			UPDATE
-				`tabLanded Cost Taxes and Charges` t, `tabLanded Cost Voucher` l
-			SET
-				t.expense_account = %s
-			WHERE
-				l.docstatus = 1
-				AND l.company = %s
-				AND t.parent = l.name
-		""",
-			(account, company),
-		)
-
-		frappe.db.sql(
-			"""
-			UPDATE
-				`tabLanded Cost Taxes and Charges` t, `tabStock Entry` s
-			SET
-				t.expense_account = %s
-			WHERE
-				s.docstatus = 1
-				AND s.company = %s
-				AND t.parent = s.name
-		""",
-			(account, company),
-		)
diff --git a/erpnext/setup/doctype/company/company.js b/erpnext/setup/doctype/company/company.js
index 4973dab..23b93dc 100644
--- a/erpnext/setup/doctype/company/company.js
+++ b/erpnext/setup/doctype/company/company.js
@@ -221,7 +221,6 @@
 		["cost_center", {}],
 		["round_off_cost_center", {}],
 		["depreciation_cost_center", {}],
-		["expenses_included_in_asset_valuation", {"account_type": "Expenses Included In Asset Valuation"}],
 		["capital_work_in_progress_account", {"account_type": "Capital Work in Progress"}],
 		["asset_received_but_not_billed", {"account_type": "Asset Received But Not Billed"}],
 		["unrealized_profit_loss_account", {"root_type": ["in", ["Liability", "Asset"]]}],
@@ -236,8 +235,6 @@
 		$.each([
 			["stock_adjustment_account",
 				{"root_type": "Expense", "account_type": "Stock Adjustment"}],
-			["expenses_included_in_valuation",
-				{"root_type": "Expense", "account_type": "Expenses Included in Valuation"}],
 			["stock_received_but_not_billed",
 				{"root_type": "Liability", "account_type": "Stock Received But Not Billed"}],
 			["service_received_but_not_billed",
diff --git a/erpnext/setup/doctype/company/company.json b/erpnext/setup/doctype/company/company.json
index 24d7da4..b9ff3dd 100644
--- a/erpnext/setup/doctype/company/company.json
+++ b/erpnext/setup/doctype/company/company.json
@@ -80,7 +80,6 @@
   "accumulated_depreciation_account",
   "depreciation_expense_account",
   "series_for_depreciation_entry",
-  "expenses_included_in_asset_valuation",
   "column_break_40",
   "disposal_account",
   "depreciation_cost_center",
@@ -103,11 +102,10 @@
   "enable_provisional_accounting_for_non_stock_items",
   "default_inventory_account",
   "stock_adjustment_account",
-  "default_in_transit_warehouse",
   "column_break_32",
   "stock_received_but_not_billed",
   "default_provisional_account",
-  "expenses_included_in_valuation",
+  "default_in_transit_warehouse",
   "dashboard_tab"
  ],
  "fields": [
@@ -470,14 +468,6 @@
    "options": "Account"
   },
   {
-   "fieldname": "expenses_included_in_valuation",
-   "fieldtype": "Link",
-   "ignore_user_permissions": 1,
-   "label": "Expenses Included In Valuation",
-   "no_copy": 1,
-   "options": "Account"
-  },
-  {
    "fieldname": "accumulated_depreciation_account",
    "fieldtype": "Link",
    "label": "Accumulated Depreciation Account",
@@ -497,12 +487,6 @@
    "label": "Series for Asset Depreciation Entry (Journal Entry)"
   },
   {
-   "fieldname": "expenses_included_in_asset_valuation",
-   "fieldtype": "Link",
-   "label": "Expenses Included In Asset Valuation",
-   "options": "Account"
-  },
-  {
    "fieldname": "column_break_40",
    "fieldtype": "Column Break"
   },
@@ -782,7 +766,7 @@
  "image_field": "company_logo",
  "is_tree": 1,
  "links": [],
- "modified": "2023-09-10 21:53:13.860791",
+ "modified": "2023-10-23 10:19:24.322898",
  "modified_by": "Administrator",
  "module": "Setup",
  "name": "Company",
diff --git a/erpnext/setup/doctype/company/company.py b/erpnext/setup/doctype/company/company.py
index b05696a..3413702 100644
--- a/erpnext/setup/doctype/company/company.py
+++ b/erpnext/setup/doctype/company/company.py
@@ -92,7 +92,6 @@
 			["Default Income Account", "default_income_account"],
 			["Stock Received But Not Billed Account", "stock_received_but_not_billed"],
 			["Stock Adjustment Account", "stock_adjustment_account"],
-			["Expense Included In Valuation Account", "expenses_included_in_valuation"],
 		]
 
 		for account in accounts:
@@ -384,7 +383,6 @@
 			"depreciation_expense_account": "Depreciation",
 			"capital_work_in_progress_account": "Capital Work in Progress",
 			"asset_received_but_not_billed": "Asset Received But Not Billed",
-			"expenses_included_in_asset_valuation": "Expenses Included In Asset Valuation",
 			"default_expense_account": "Cost of Goods Sold",
 		}
 
@@ -394,7 +392,6 @@
 					"stock_received_but_not_billed": "Stock Received But Not Billed",
 					"default_inventory_account": "Stock",
 					"stock_adjustment_account": "Stock Adjustment",
-					"expenses_included_in_valuation": "Expenses Included In Valuation",
 				}
 			)
 
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 9fdb01a..d89d805 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -491,7 +491,6 @@
 				return
 
 			# divisional loss adjustment
-			expenses_included_in_valuation = self.get_company_default("expenses_included_in_valuation")
 			valuation_amount_as_per_doc = (
 				flt(outgoing_amount, d.precision("base_net_amount"))
 				+ flt(item.landed_cost_voucher_amount)
@@ -505,13 +504,10 @@
 			)
 
 			if divisional_loss:
-				if self.is_return or flt(item.item_tax_amount):
-					loss_account = expenses_included_in_valuation
-				else:
-					loss_account = (
-						self.get_company_default("default_expense_account", ignore_validation=True)
-						or stock_asset_rbnb
-					)
+				loss_account = (
+					self.get_company_default("default_expense_account", ignore_validation=True)
+					or stock_asset_rbnb
+				)
 
 				cost_center = item.cost_center or frappe.get_cached_value(
 					"Company", self.company, "cost_center"
@@ -684,10 +680,8 @@
 
 		if negative_expense_to_be_booked and valuation_tax:
 			# Backward compatibility:
-			# If expenses_included_in_valuation account has been credited in against PI
 			# and charges added via Landed Cost Voucher,
 			# post valuation related charges on "Stock Received But Not Billed"
-			# introduced in 2014 for backward compatibility of expenses already booked in expenses_included_in_valuation account
 			against_account = ", ".join([d.account for d in gl_entries if flt(d.debit) > 0])
 			total_valuation_amount = sum(valuation_tax.values())
 			amount_including_divisional_loss = negative_expense_to_be_booked
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 1af7b9a..e998b84 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -957,88 +957,6 @@
 		pr1.reload()
 		pr1.cancel()
 
-	def test_stock_transfer_from_purchase_receipt(self):
-		pr1 = make_purchase_receipt(
-			warehouse="Work In Progress - TCP1", company="_Test Company with perpetual inventory"
-		)
-
-		pr = make_purchase_receipt(
-			company="_Test Company with perpetual inventory", warehouse="Stores - TCP1", do_not_save=1
-		)
-
-		pr.supplier_warehouse = ""
-		pr.items[0].from_warehouse = "Work In Progress - TCP1"
-
-		pr.submit()
-
-		gl_entries = get_gl_entries("Purchase Receipt", pr.name)
-		sl_entries = get_sl_entries("Purchase Receipt", pr.name)
-
-		self.assertFalse(gl_entries)
-
-		expected_sle = {"Work In Progress - TCP1": -5, "Stores - TCP1": 5}
-
-		for sle in sl_entries:
-			self.assertEqual(expected_sle[sle.warehouse], sle.actual_qty)
-
-		pr.cancel()
-		pr1.cancel()
-
-	def test_stock_transfer_from_purchase_receipt_with_valuation(self):
-		create_warehouse(
-			"_Test Warehouse for Valuation",
-			company="_Test Company with perpetual inventory",
-			properties={"account": "_Test Account Stock In Hand - TCP1"},
-		)
-
-		pr1 = make_purchase_receipt(
-			warehouse="_Test Warehouse for Valuation - TCP1",
-			company="_Test Company with perpetual inventory",
-		)
-
-		pr = make_purchase_receipt(
-			company="_Test Company with perpetual inventory", warehouse="Stores - TCP1", do_not_save=1
-		)
-
-		pr.items[0].from_warehouse = "_Test Warehouse for Valuation - TCP1"
-		pr.supplier_warehouse = ""
-
-		pr.append(
-			"taxes",
-			{
-				"charge_type": "On Net Total",
-				"account_head": "_Test Account Shipping Charges - TCP1",
-				"category": "Valuation and Total",
-				"cost_center": "Main - TCP1",
-				"description": "Test",
-				"rate": 9,
-			},
-		)
-
-		pr.submit()
-
-		gl_entries = get_gl_entries("Purchase Receipt", pr.name)
-		sl_entries = get_sl_entries("Purchase Receipt", pr.name)
-
-		expected_gle = [
-			["Stock In Hand - TCP1", 272.5, 0.0],
-			["_Test Account Stock In Hand - TCP1", 0.0, 250.0],
-			["_Test Account Shipping Charges - TCP1", 0.0, 22.5],
-		]
-
-		expected_sle = {"_Test Warehouse for Valuation - TCP1": -5, "Stores - TCP1": 5}
-
-		for sle in sl_entries:
-			self.assertEqual(expected_sle[sle.warehouse], sle.actual_qty)
-
-		for i, gle in enumerate(gl_entries):
-			self.assertEqual(gle.account, expected_gle[i][0])
-			self.assertEqual(gle.debit, expected_gle[i][1])
-			self.assertEqual(gle.credit, expected_gle[i][2])
-
-		pr.cancel()
-		pr1.cancel()
-
 	def test_po_to_pi_and_po_to_pr_worflow_full(self):
 		"""Test following behaviour:
 		- Create PO
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index cc8a108..3e0610e 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -449,9 +449,7 @@
 		repack.posting_date = nowdate()
 		repack.posting_time = nowtime()
 
-		expenses_included_in_valuation = frappe.get_value(
-			"Company", company, "expenses_included_in_valuation"
-		)
+		default_expense_account = frappe.get_value("Company", company, "default_expense_account")
 
 		items = get_multiple_items()
 		repack.items = []
@@ -462,12 +460,12 @@
 			"additional_costs",
 			[
 				{
-					"expense_account": expenses_included_in_valuation,
+					"expense_account": default_expense_account,
 					"description": "Actual Operating Cost",
 					"amount": 1000,
 				},
 				{
-					"expense_account": expenses_included_in_valuation,
+					"expense_account": default_expense_account,
 					"description": "Additional Operating Cost",
 					"amount": 200,
 				},
@@ -506,9 +504,7 @@
 		self.check_gl_entries(
 			"Stock Entry",
 			repack.name,
-			sorted(
-				[[stock_in_hand_account, 1200, 0.0], ["Expenses Included In Valuation - TCP1", 0.0, 1200.0]]
-			),
+			sorted([[stock_in_hand_account, 1200, 0.0], ["Cost of Goods Sold - TCP1", 0.0, 1200.0]]),
 		)
 
 	def check_stock_ledger_entries(self, voucher_type, voucher_no, expected_sle):
diff --git a/erpnext/subcontracting/doctype/subcontracting_receipt/subcontracting_receipt.py b/erpnext/subcontracting/doctype/subcontracting_receipt/subcontracting_receipt.py
index 6aecaf9..7e06444 100644
--- a/erpnext/subcontracting/doctype/subcontracting_receipt/subcontracting_receipt.py
+++ b/erpnext/subcontracting/doctype/subcontracting_receipt/subcontracting_receipt.py
@@ -410,7 +410,6 @@
 
 	def make_item_gl_entries(self, gl_entries, warehouse_account=None):
 		stock_rbnb = self.get_company_default("stock_received_but_not_billed")
-		expenses_included_in_valuation = self.get_company_default("expenses_included_in_valuation")
 
 		warehouse_with_no_account = []
 
@@ -482,10 +481,7 @@
 					divisional_loss = flt(item.amount - stock_value_diff, item.precision("amount"))
 
 					if divisional_loss:
-						if self.is_return:
-							loss_account = expenses_included_in_valuation
-						else:
-							loss_account = item.expense_account
+						loss_account = item.expense_account
 
 						self.add_gl_entry(
 							gl_entries=gl_entries,