We're glad you came here to ask how to write off damaged stock in your inventory, @sales-cornerstar.
I'll provide you with steps on writing this off in QuickBooks Online (QBO).
First off, let's create an expense account to track the amount you lose for the damaged item. Here's how:
- Click the Accounting tab.
- Select New.
- Set the Account Type to Expenses, then choose whichever is closest to the Detail Type.
- Enter a name.
- Hit Save and Close.
Next up, you need to create a service to link the expense account. Feel free to follow these steps:
- Highlight the Sales tab. Select Products and Services.
- Press New. Click Service.
- Type In the name.
- Change the Income account to the expense account you created above.
- Click Save and close.
After that, we'll create a zero-sales receipt for the damaged item so it won't show in your records and reports. Then, create a journal entry and credit the customer in the accounts receivable to also credit the Cost of Goods.
If you want to see your best sellers, what's on hand, and the cost of goods, check out this article: Use reports to see your sales and stock status in QuickBooks Online.
Leave a comment below if you have additional questions about managing your inventory. We'll be willing to assist you. Keep safe, and have a good one.
