Writing off inventory directly to a Balance Sheet (BS) GL account

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 Cost of Goods for Sale 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 document, we'll proceed this transaction. 

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

1) Create a new account under BS Inventories section with description as Suspense Account:

2) Create a new Other Expense Document (Accounting section - Service Tools - Other Expenses):  with Transaction Type - Reversal, Date - end of the year :

Expense GL Account Cr - should be selected as  Other Operating Expense, GL Account Dr - new Suspense Account:

In Account Dr Dimension create dummy item (for example Written Off 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) - this option is mandatory only if you have run Month end closing before the Other Expense document Entry:

4) The balance will appear under Other Inventories in Statement of Financial Position report:

5) The same procedure is relevant for Inventory Receipts documents, but instead of Other Expense, Other Income document  (Accounting - Service Tools - Other Incomes) is used:

with Transaction Type - Reversal :

And in same way: GL Account Cr may be selected as Suspence Account, Income GL Account may be set as Other Operating Income:

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