How can i create write off without affecting income statement?
So that it can affect on inventory items and inventory on hand value since the product is fuel and i dont pay for write off on my profit i got it deducts on inventory on hand and inventory items
I need a help on these
In accounting, there are always two effects of every transaction
For example, selling for cash increase sales and profits and increases cash on hand
Writing off inventory will always reduce inventory value and increase costs and reduce profit
@administrator4, you seem to have an incorrect understanding of the effect of a writeoff. A writeoff does not result in your paying for something. By reducing your inventory assets, it increases your expenses and lowers profits. But you are not paying for anything new. You already paid for the fuel. Its cost originally became an asset. You are simply transferring the cost to expenses, because that fuel can no longer produce income.