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 we'll proceed this transaction.
| Inventory Write Off BS0221-00000001 dated 15/08/2021 12:30:59 | 20,891.90AED |
For the above Inventory Write off can be temporary transferred from Other Operating Expense to 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
Expense Account Cr - Other Operating Expense, GL Account Dr - BS 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):
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:
