How to do inventory adjustment without affecting COS? How to account for damaged stock received from the supplier that will be replaced later?
I have received from my supplier some defected items. The full purchase order was recorded as a stock receipt, and I have created a "damaged stock" product and thought of moving the defected items from normal stock to defected products through inventory adjustment.
Although in my adjustment the Qty of defected items is going positive against the same negative qty for related items credited from good stock, the value of all decreased quantities is affected to COS automatically.
I just want to adjust qty between good stock and damaged stock.
What to do? I don't want to account the damaged stock as an expense since it will be replaced by the supplier. Any advice?
Or should I take a completely different approach to record these damaged items?