For my cinema I have inventory which we sell (wine, snacks). On occasion we treat our volunteer staff and use some of that inventory, absorbing the costs. However, recording the inventory use as either zero cost or as written off impacts the average profit/average sale price in reports - which I don’t want to do as this relates to our “proper”/commercial sales.
What’s the best way of handling this ? Is there a simple way to recode that inventory use and re-categorise it as (e.g.) “staff entertainment” in a way which doesn’t impact average sale/profit records ? The only solution I’ve come up with (and which doesn’t fully solve the problem) is to sell the inventory at cost as one line item and then reallocate the funds to “staff entertainment” (but since I’ve both bought and sold the inventory it presumably impacts on the profitability).
Hope that makes sense. NB I am not an accountant so I’m sure this phraseology will be wrong.