Because I have summary page as accrual and profit and loss as cash basis I was able to pick up an error with the inventory write off. It should be the same amount as the goods were written off months ago so there is nothing outstanding as it were. Oddly enough its only the one item that has a diff…

Has there been other inventory movement for the memory card? Would such movement affect the average cost? I believe a write-off will occur at average cost, which could be different if some other transaction has not fully cleared. That’s why it can be dangerous mixing accrual and cash accounting.

It’s possible for the write-off amount on cash-basis to be lower or higher than on accrual-basis. For example, if you purchase goods but pay for them at later date. On accrual-basis your cost per unit could be different from cash-basis. Therefore any inventory write-off will reflect this too. The …

@Tut - There has no other inventory movement for the memory card. That particular inventory item has been disabled and was the only item bought and sold and returned for that particular inventory item. @lubos I am not following why the amount would differ in March if the purchase and payment dates…

So which amount is correct, 14.72 or 12.88? Or is it neither? If you know which is correct, you can go hunting for the difference. Perhaps a tax was applied, but misallocated? Check all your other registers for a 1.84 transaction (you can do this quickly by sorting the screens on the Amount columns)…

[image] dalacor: I am not following why the amount would differ in March if the purchase and payment dates were both sometime last year 2015. It could still result in different write-off amount long time after. Were there any sales between purchase and payment date? You can send me your acco…

The correct amount is £14.72. I have determined that by deleting the credit note, sales invoice of that particular item and payment of that particular item it will show the amount as £14.72 regardless of accrual or cash. I will have to restore the backup accounts on my laptop again and start by de…

Ok that was a long commercial. I have given up trying to find out exactly what is going on here. As I said in my email it appears to be something to do with the date of the credit note and I can change the amount by either moving the credit note date backwards in time or by moving the payment of t…

OK, looking into your accounting file, it is indeed a bug. What is happening is that when you created a credit note, you have allocated it against already paid invoice. This is normally not a problem but on cash-basis there is an issue I wasn’t aware before. I have to fix it. For now, you can easi…

I spent two hours on this and you found the cause in 2 minutes! Holy crap you are brilliant! :grinning: I did not realise that you were not supposed to issue credit against paid invoice. I thought that you were supposed to issue credit against the invoice that sold the item - hence the confusion…

[image] dalacor: I did not realise that you were not supposed to issue credit against paid invoice. I thought that you were supposed to issue credit against the invoice that sold the item - hence the confusion. You can. But on cash-basis there is an issue which needs to be fixed. Bottom lin…

Inventory Write Off Issue with accrual versus cash basis

itmoto March 27, 2016, 8:54am 12

@dalacor See here for Quantity issue you mentioned in your second unrelated point Possible bug when invoicing inventory items?

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Inventory Write Off Issue with accrual versus cash basis

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