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Anonymous
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Track stocks taken for personal use

I need to track the reduction in the quantity on hand for stocks that I have taken for personal use.

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Best answer June 26, 2020

Best Answers
Anonymous
Not applicable

Track stocks taken for personal use

To track the reduction in the Quantity on hand for inventory items due to personal use, the relevant steps are as follows:

 

A. Reduce Quantity on Hand by creating a Sales receipt.

 

1. Click on +New and create a Sales receipt.

2. From the Deposit to field, select your bank account. This will create a zero dollar transaction in your bank register that would not affect your reconciliation.

3. In the Product/Service section, select the product taken for personal use.

4. Indicate the Rate as 0. Doing so will not affect the total Sales in the Profit and Loss report.
5. Click Save. Do not close the Sales receipt yet.

6. Click on More and select the Transaction Journal.

7. Take note of the amount for Cost of Goods Sold/Cost of Sales.

 

B. Reverse the reduction in Cost of Goods Sold/Cost of Sales through a Journal entry.

 

1. Click on +New and create a Journal entry.
2. For the first line, choose the Expense account that you want to track the reduction in Quantity on hand due to personal use. You may set up a dedicated Expense account for such purpose, e.g. Stocks taken for personal use.
3. Enter the amount of Cost of Goods Sold/Cost of Sales (from Step 7 above) under the Debits column.
4. For the second line, choose the Cost of Goods Sold/Cost of Sales account.
5. The Credits column will auto-populate with the same amount as the debit.
6. Click Save and close.

View solution in original post

1 Comment 1
Anonymous
Not applicable

Track stocks taken for personal use

To track the reduction in the Quantity on hand for inventory items due to personal use, the relevant steps are as follows:

 

A. Reduce Quantity on Hand by creating a Sales receipt.

 

1. Click on +New and create a Sales receipt.

2. From the Deposit to field, select your bank account. This will create a zero dollar transaction in your bank register that would not affect your reconciliation.

3. In the Product/Service section, select the product taken for personal use.

4. Indicate the Rate as 0. Doing so will not affect the total Sales in the Profit and Loss report.
5. Click Save. Do not close the Sales receipt yet.

6. Click on More and select the Transaction Journal.

7. Take note of the amount for Cost of Goods Sold/Cost of Sales.

 

B. Reverse the reduction in Cost of Goods Sold/Cost of Sales through a Journal entry.

 

1. Click on +New and create a Journal entry.
2. For the first line, choose the Expense account that you want to track the reduction in Quantity on hand due to personal use. You may set up a dedicated Expense account for such purpose, e.g. Stocks taken for personal use.
3. Enter the amount of Cost of Goods Sold/Cost of Sales (from Step 7 above) under the Debits column.
4. For the second line, choose the Cost of Goods Sold/Cost of Sales account.
5. The Credits column will auto-populate with the same amount as the debit.
6. Click Save and close.

View solution in original post