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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: 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 done using Other Expense document. 

On the example of the below Inventory Write off Off, we'll proceed this transaction. 

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For the above Inventory Write off Off can be temporary transferred from Other Operating Expense to Suspense Account.

1) Create a new account under BS Inventories as Suspense Account:  
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2) Create a new Other Expense DocumentType : Type - Reversal, Date - end of the year year
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Expense Account Cr - Other Operating Expense, GL Account Dr - BS Suspense Account Account:
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In Account Dr Dimension create dummy item:
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Put the item and Warehouse in Dr Dimension, put the Amount and post the document:
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3) Execute Month end closing (for the month when Other Expense is entered) - this option is mandatory only if you have run Month end closing before the Other Expense Entry:
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4) The balance will appear under Other Inventories: 
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4)In case if the Inventory Write off is entered due to incorrect Opening balance entry the additional entry can be done: 

Image Removed5) The same procedure is relevant for Inventory Receipts, but instead of Other Expense, Other Income document is used
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