Adjusting Inventory
How do you remove old inventory from stock that needs to be scrapped?
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bu-BFWu30r4yUOacwZ5xHE
02/09/12 4:23pm PST
Viewed by asker 02/12/12 2:04pm PST
Viewed by asker 02/12/12 2:04pm PST
1 Reply
mmanju
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Questions answered: 1730
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02/09/12 8:42pm PST
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The solution
| Write off items through Vendors>inventory activities>adjust qty/value on hand to reduce/ increase the inventory showing in books to match with Actual usable Inventory in Hand |
| This should normally go to subaccount of Cost of Goods Sold ( COGS)since you are basically correcting Cost of Goods Sold charge. |
| I would suggest make a COGS Subaccount - Obsolete /Damaged and make the adjustment to that account. |
| Items scrapped, obsolete, etc, as per IRS requirement must be documented that the item was destroyed and rendered unusable, and that it was disposed of, pictures are required. |
| If this post answers your question, please give a “thumbs up” or mark this “Solved” else feel to free to ask more questions |
Manju
