The Inventory Write Off module has two uses:
- To write off stock and services which have been lost, stolen, damaged, given away or used internally.
- To allocate inventory or services expense to a particular job when used in conjunction with the Job Costing module.
In accounting terms, Inventory Write Offs are functionally identical to Stock Adjustments.
NOTE: Non-inventory products are not available for write-off.
Table of Contents
- Create a new Inventory Write Off
- Inventory Write Off/Expense Allocation for Job Costing
- Viewing Inventory Write Off Transactions
Create a new Inventory Write Off
Inventory Write Offs are managed from the Production module or Inventory module. Stock items written off will be removed from your available inventory.
Create a new Inventory Write Off:
- Navigate to Production/Inventory → New → Inventory Write Off.
- Identify the Location where stock will be written off.
- Select the relevant Expense Account.
- To add a product or service to be written off, click + and then select the relevant product or service from your inventory.
- Identify the Quantity which will be written off. Cost will be automatically calculated using your chosen Costing Methods and previous transactions.
- Complete the Inventory Write Off. This will write off the cost of the inventory to the selected expense account.
Inventory Write Off/Expense Allocation for Job Costing
The Inventory Write Off function is also used to allocate expenses of stock and services from your inventory to a Job. See Job Costing for further details.
Assign inventory to a Job:
- Navigate to Production/Inventory → New → Inventory Write Off/Expense Allocation or navigate to Production → Jobs, select the Job to assign inventory to and click New Expense → Inventory Write Off/Expense Allocation.
- Identify the Location where stock will be written off.
- Select the expense sub-account dedicated to the job in question. If the Inventory Write Off was created through the Job, this will be filled in automatically.
- Click + and then select the relevant products and/or services from your inventory.
- Identify the Quantity which will be written off. Cost will be automatically calculated using your chosen Costing Methods and previous transactions.
- Complete the Inventory Write Off. This will write off the cost of the inventory to the job sub-account. The Inventory Write Off will then be available on the Job screen ready to be invoiced to customers.
Viewing Inventory Write Off Transactions
View a list of all Inventory Write Offs from Inventory → Inventory Write-Off or Production → Inventory Write Off. Clicking on an Inventory Write Off will show you the details including the accounting transactions for that Write Off.
There is no Import/Export functionality in the All Inventory Write Off section, so it is not possible to view a Summary Report of Inventory Write Off transactions from here. Some options for viewing an Inventory Write Off Summary are:
- Using a single Expense account for all write off transactions, then running the General Ledger Report. Inventory Write Off transactions can be viewed by checking the relevant expense account.
- Run the Inventory Movement Details Report and filter by Inventory Write Off