You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 9 Next »

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#ActivityRegister records type

Entity

Warehouse / Department / Company

GL Account

GL Account

ItemBatchQuantityAmountCorr. Structural UnitCorr. GL Account
Corr. GL Account
Corr. Item
Corr. Batch
Corr. Order
Specification
Corr. SpecificationOrder SalesSales Document
Sales DepartmentResponsible
VAT RateFixed CostProduction ExpensesReturnReturn TypeContent of TransactionBusiness Activity SalesExpense ItemCorr. Expense ItemCost Of Goods Sold GL AccountProjectProject TaskSales Item
31/12/2021 00:00:001YesReceiptAMISTAD OILFIELD ENGINEERING SERVICES LLCAMISTAD OFES _ ACT SITE OFFICE
GoodsSS Plate-A240 GR.304L-12000X2000X6.00

267,823.99








Inventory Write Off AM0021-00000108 dated 04/11/2021 00:00:00AMISTAD OFES _ ACT SITE OFFICE

NoNoNo







SS Plate-A240 GR.304L-12000X2000X6.00

6. Check the statements and reports. The register correction fixes the negative values:


Thank you for being a FirstBIT customer!

  • No labels