I would like to be able to use inventory write-offs to allocate inventory to personal use, as per this discussion (for example, by allocating it to the Funds contributed or Drawings subaccounts of my capital account). Until now I have been using journal entries for this, but it necessitates looking …

I have moved this into ideas. [image] Mark: write-offs are used for broken or expired items Those are possible uses. But inventory write-offs can be used for other non-revenue disposition, too. For example, inventory given away for marketing samples or used for internal operations. [imag…

@GrahamvdR , the solution to your problem is not in write-offs, as this solves this minor problem by introducing much bigger problems. You should create a customer account for your owners/employees. Then you have two options here: A. Create a non-inventory item (owners discount mapped to an equity…

@Ealfardan , your objection is rooted in personal preference rather than any accounting principle. @GrahamvdR ’s suggestion merely allows drawings to be taken in kind at their current asset value. That is a perfectly acceptable accounting transaction. [image] Ealfardan: Create a non-inventory ite…

No matter how you justify it @tut , write-off will never equate to a stock issue. Write-off is a very specific accounting term which is used to record a “loss or impairment of value.” Decrease in inventory because of issue whether it’s a sales, a manufacture, or whatever transaction it may be is ne…

@Ealfardan , now you are down to quibbling over whose definition of write-off or issue you want to use. In its broadest definition, a write-off is a reduction of an asset associated with its inability to produce future income. You seem to prefer a definition that only includes events beyond your cont…

Some explanations here [image] Goods Withdrawn For Personal Use | Double Entry Bookkeeping Goods withdrawn for personal use by the owner of a business reduce inventory and are recorded on a drawings account. They are not an expense of the business [im…

[image] Tut: I am also not alone. As one example, Quickbooks specifically treats conversion to marketing samples as an inventory write-off. No it doesn’t. It gets allocated to ‘Advertising and Promotion’

@VACUUMDOG , both your examples use a journal entry to credit the asset account holding inventory. In Manager, that is Inventory on hand. An inventory write-off in Manager credits this asset account and debits whichever account you allocate the transaction to. Your first example debits the drawings a…

In my opinion inventory write off" is different to supply to a related party. The important difference is tax deductibility spoilage, loss, supply of samples; are all tax deductible business expenses Personal use by owner; is not a business tax deductible expense. An owner can buy stock from a…

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

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

ideas

VACUUMDOG September 7, 2020, 11:47pm 9

Some explanations here

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

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