Purchase of Inventory Items (Expenses)

1

What is the category, Purchases of Inventory Items under the expenses category. I lost inventory items that were damaged, created a sales invoice called Inventory Loss and “sold” all those items for 0.00. Now under expenses I have an expense for a 1.49, when I click on it, it shows me a sales invoice split into multiple rows with random 0.29 or 0.17 prices next to them. It is really frustrating.

2

First of all, you shouldn’t be creating sales invoice to write-off inventory. That’s non-sense.

Delete sales invoice you have created, then go to Journal entries tab.

Credit Inventory on hand account (select inventory item and enter qty) and on second line debit Damaged goods account.

  • If you don’t have Damaged goods account, go and create this expense account under your Chart of Accounts.
  • Debit/credit amounts in journal entry is how much value you are writing off. If you are writing off 5 items valued at $20 each. Then debit/credit amount will be $100.

Have a look under Documentation tab were there is tutorial for every inventory event - sales, purchases, returns, write-offs etc.

3

The latest version now contains new tab Inventory Adjustments which makes it a lot easier to record inventory write-offs.