cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Recording a loss

How can I record a loss, in this case food spoilage due to equipment malfunction?

Solved
Best answer 09-17-2019

Accepted Solutions
QuickBooks Team

Re: Recording a loss

Thanks for coming to the Community for help, @beesrvresort.


You can record a credit to the appropriate inventory account to reduce the amount of the spoiled item on hand. Then, debit the spoilage expense to deduct it from your net profit.


Enter a bill and create a vendor called My Company (internal) to account for this. Here’s how:

  1. From the Vendor menu and select Enter Bills
  2. Click Add New on the Vendor drop-down, and create the vendor. 
  3. Pick the Items tab, then select the spoilage food in the first line item.
  4. Enter a negative amount in the Qty column of the items taken from stock. 
  5. Use the average price as Cost.
  6. Go to the Expenses tab and choose an expense account.
  7. On the Amount column, type in the positive figure of the value showing on the Amount Due box.
  8. Hit Save & Close.

 

 

 

 

Take a look at this article for the detailed steps: Enter bills.


Let me add the link to our Resource Center for information or topics related to operating a successful restaurant using QuickBooks: https://quickbooks.intuit.com/r/guides/operating-successful-restaurant/.


Should you have questions or need further assistance, let me know. I’m more than happy to help. Take care!
 

View solution in original post

1 Comment
QuickBooks Team

Re: Recording a loss

Thanks for coming to the Community for help, @beesrvresort.


You can record a credit to the appropriate inventory account to reduce the amount of the spoiled item on hand. Then, debit the spoilage expense to deduct it from your net profit.


Enter a bill and create a vendor called My Company (internal) to account for this. Here’s how:

  1. From the Vendor menu and select Enter Bills
  2. Click Add New on the Vendor drop-down, and create the vendor. 
  3. Pick the Items tab, then select the spoilage food in the first line item.
  4. Enter a negative amount in the Qty column of the items taken from stock. 
  5. Use the average price as Cost.
  6. Go to the Expenses tab and choose an expense account.
  7. On the Amount column, type in the positive figure of the value showing on the Amount Due box.
  8. Hit Save & Close.

 

 

 

 

Take a look at this article for the detailed steps: Enter bills.


Let me add the link to our Resource Center for information or topics related to operating a successful restaurant using QuickBooks: https://quickbooks.intuit.com/r/guides/operating-successful-restaurant/.


Should you have questions or need further assistance, let me know. I’m more than happy to help. Take care!
 

View solution in original post

Need to get in touch?

Contact us