Problem: We've entered Inventory Write-Off documents but do not want them to reflect the expense account and want to move them to the balance sheet.
Solution: The Generally, the Inventory is written off to COGS or other PL Expense Accounts, but in the case when it should not reflect Profit and Loss the reversal of Inventory Write-off can be sone done using Other Expense document.
On the example of the below Inventory Write off we'll proceed this transaction.
| Inventory Write Off BS0221-00000001 dated 15/08/2021 12:30:59 | 20,891.90AED |
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For the above Inventory Write off should can be temporary transferred from Other Operating Expense to Goods. Suspense Account.
1) Create a new account under BS Inventories as Suspense Account:
2) Create a new Other Expense Document
Type - Reversal, Date - end of the year
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Expense Account Cr - Other Operating Expense, GL Account Dr - BS Other Inventories Suspense Account
In Account Dr Dimension create dummy item:
Put the item and Warehouse in Dr Dimension, put the Amount and post the document:
3) Execute Month end closing (for the month when Other Expense is entered):
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The balance will appear under Other Inventories:
*4)In case if the Inventory Write off is entered due to incorrect Opening balance entry the additional entry can be done:
