Shop usage, damaged or out-of-date items take up inventory space. The items still have value, but you know your customers aren't interested in these products at any price.

Let’s write them off so that our GP/SOH is accurate.

Ensuring that your products are correctly accounted for is one of the keys to good stock maintenance, product history and accurate reporting. Toniq Retail offers a couple of different methods to write off the unsaleable items:

Solution 1 - Create a credit order for unsaleable items using a supplier called e.g. Write Off Inventory

Reporting - Use “Report Received orders” to report on written off stock.

Solution 2 - Interstore (IS) sale (last cost + GST) charged to a Shop Debtor Account called e.g. Write Off Inventory

NB: If “Count Interstore as sale” option is ticked then IS will be shown as a sale rather than a negative purchase.

Charges to this debtor may be cleared at the end of each month (or at the end of the financial year), either by journaling off or 100% discounting the account.

Setting up the Debtor Account - one off setup

  • 3 [Debtors], 1 [Maintain Debtors], press F3 [Add].
  • Name the account (e.g. Write Off Inventory) and add any other information you require
    • If you will be journal entry-ing the account each month, press F12 [Accept Details]
    • If you will be using Apply Fees and Discounts to clear the account, press F11 [Next Page] type 100% in the ‘End of month discount %’ field. Tick ALL the ‘Apply To’ boxes, particularly the ‘Apply to Interstore Supply’ box. Also, tick ‘Override default options and F12 [Accept Details]

NB: You may wish to place this debtor in a “don’t print” category.

Reporting - Use “Transaction Audit Report” to report on written off stock.