Problem: How to write off an excessive amount occurred because of Inventory Write Off done by Average Cost?
Solution: Add the reversal entry for excessive expense and register correction for the inventory as shown.
1. Item has excessive amount - 267,823.99 AED occurred because of inventory write off:
The reason of this mismatch is the purchase of the item by different prices:
And then it was written off by Average Cost Price (since the Inventory Write Off document automatically picking the average cost price from purchase documents):
Later, the part of the items was returned to the supplier (by purchase price) so the excessive amount has occurred on item's balance:
2. Check the transactions for Inventory Write Off:
3. Enter reversal Other Expense document for the same GL Accounts:
See also 7.5.4. Other Expenses
4. Check Inventory and Expense Register in the Inventory Write Off for the same Item:
5. Enter register correction for the above as Receipt:
fill as shown below and save Register Correction:
| Period | # | Activity | Register records type | Entity | Warehouse / Department / Company | GL Account | GL Account | Item | Batch | Quantity | Amount | Corr. Structural Unit | Corr. GL Account | Corr. GL Account | Corr. Item | Corr. Batch | Corr. Order | Specification | Corr. Specification | Order Sales | Sales Document | Sales Department | Responsible | VAT Rate | Fixed Cost | Production Expenses | Return | Return Type | Content of Transaction | Business Activity Sales | Expense Item | Corr. Expense Item | Cost Of Goods Sold GL Account | Project | Project Task | Sales Item |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31/12/2021 00:00:00 | 1 | Yes | Receipt | AMISTAD OILFIELD ENGINEERING SERVICES LLC | AMISTAD OFES _ ACT SITE OFFICE | Goods | SS Plate-A240 GR.304L-12000X2000X6.00 | 267,823.99 | Inventory Write Off AM0021-00000108 dated 04/11/2021 00:00:00 | AMISTAD OFES _ ACT SITE OFFICE | No | No | No | SS Plate-A240 GR.304L-12000X2000X6.00 |
6. Check the statements and reports. The register correction fixes the negative values:
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