Hello, I'm wondering if any of you have experience with retail outlets where it is common to regularly write off stock for lost/stolen/damaged goods. Do you creating a seperate account for this?
Also what if you happen to find stock (likely previously written off)? Would you then credit the account previously used to write-off lost/stolen goods?
I'm developing a barcode inventory package and have it all working pretty well except I need to make sure the adjustments portion is working correctly. I'm particularly unsure about what to do for positive adjustments.
Usually you would enter a provision in the profit & loss to cover this & transfer balances for year end sometime the accountant will give you the details on the opening balances once prepared. If stock is "found" for instance then you would just do a reverse journal either way it works the same as a bad debt provision. In catering, for instance we would ask customers to prepare a "wastage" sheet of spoiled, damaged food. It all works the same..
