[Question] Writing off stock on Pastel Xpress v12

[prineesha]

Hi,

What are the procedures for writing off stock/inventory on pastel v12 express. Should a jnl just be passed against inventory control account? Or should each line item need to be adjusted on inventory, and if so how ?

[Neville Bailey]

Hi Prineesha,

It is never advisable to process any journals directly to the inventory control account if you have set up inventory to integrate with the general ledger. The control account should only be updated by the entries that have been processed to the individual inventory items.

In order to write off stock, process an inventory journal and create a line item in the journal for each item that needs to be written off, inserting the quantity to be written off in the "Out" column. This will effectively credit the inventory control account. The Contra account in the inventory journal is set to debit the Inventory Adjustment Account, by default, but you can change the allocation to another general ledger account if you prefer.

[prineesha]

Thanks Neville. Appreciated