Remove inventory for personal use

1

Hello all

I’m trying to find the proper way to remove inventory for personal use as it shouldn’t be a tax deduction but needs to be removed to match inventory on hand

Thanks

2

There are two basic approaches:

  • Sell yourself the item. Just enter a regular receipt. This is probably easiest if your conversion to personal use is subject to tax, such a a sales and use tax, which it probably is.
  • Write the inventory off. Unfortunately, this would normally involve allocating the write-off to an owner’s equity or capital account, which Manager does not allow. So use a journal entry to accomplish the same thing. Debit the equity account and credit Inventory on hand. If the transfer is taxable, the amounts must be tax-inclusive, but the tax code would be applied only to the credit leg of the journal entry.