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.
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.
Inventory on hand account (select inventory item and enter qty) and on second line debit
Damaged goods account.
- If you don’t have
Damaged goodsaccount, 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.
The latest version now contains new tab
Inventory Adjustments which makes it a lot easier to record inventory write-offs.