Allocate inventory write-off to equity account for personal use of stock

[GrahamvdR]

Thanks @Tut for making a case for this idea more eloquently than I could have.

@Patch

Personal use by owner is not a business tax deductible expense. An owner can buy stock from a business at arms length value. In doing so the owner pays VAT/GST

Agreed. Inventory write-offs allow the user to apply a tax code to the transaction, which is what I would do if I was allocating it to an equity account for personal use.

Earlier in the year @lubos wrote in another topic:

@lubos

@GrahamvdR this was a bug. What you’ve done is correct. Manager allows to use tax code on inventory write-offs becase in some circumstances, write-off does affect your tax liability (or credit). E.g. when the item is written-off for private use.

Tax Summary report wasn’t able to pick up these taxable inventory write-offs. The latest version (20.2.83) is fixing the issue.

Just to clarify, inventory write-off is not just for spoiled/damaged goods, free samples or internal consumption. It should be used for private use as well.

(Emphasis is mine.)

I am not an accountant, so perhaps for me the term “inventory write-off” does not carry such a specific meaning as it does for some others here. What I would like to achieve is to be able to allocate inventory for personal use to an equity account, and have Manager do all the cost calculations itself. I don’t really mind if this is called “inventory write-off” or something else altogether. Currently all the methods that I’ve tried or have been suggested either involve manual look-up and input of costs or extra clearing accounts and more steps. The Inventory write-off transaction type seems to accomplish what I want perfectly, except that I can’t select the equity account for the allocation. As far as I can tell, all reporting obligations to the tax authority will be met, provided I select the appropriate tax code for the transaction (which would still be the case if I was using a journal entry or any other method).