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INVENTORY WRITE-OFFS
There will be occassions when you will want to reduce the stock count of an inventory item because the item was used in-house or because it was broken or stolen. A guiding principle is to assure that there is adequate documentation of why the stock count was reduced and at the same time not inflate store sales.
We recommend the use of a Purchase Order "Quick Return" for reducing stock counts writing off inventory.
1) Go to the vendor list (Utilities: Vendors) and add vendors named "For Store Use," "Broken/Stolen Items" or some other descriptive names. When creating these vendors, you may choose a Vendor Term which will or will not post to AP, depending upon your needs.
2) Create a Purchase Order (choose Receive Without PO) for the appropriate vendor described above and add the inventory item as a NEGATIVE quantity and dollar cost. Process the Purchase Order.
RESULTS If you go to the Inventory List, highlight the item, and choose the stock tab (at the bottom of the screen) you will see that the stock count has been reduced. Choosing the Transaction Log button will show documentation of Quick Return. At any time you can run reports for the vendors to give you year to date totals for losses and store consumption.
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