[GNC] Writing off Stock - More an Accounting Question than a GnuCash one

[Michael or Penny Novack]

On 6/25/2023 1:42 AM, Jeff wrote:
> Hi List,
>
> This is more a general accounting question than specifically a GnuCash 
> one, but thought there might be better help on the list for it.
>

>
> Issue:
> I have some stock that is either obsolete, or otherwise no longer fit 
> for sale.  Just wondering what is the "correct" way to write this 
> stock off. (In case it matters, I am located in Australia).
> My thoughts were:
> - Have an Account called Write-offs to record the transfer of the 
> dollar amount from Inventory to Write-Offs.
> - Also, record the cost of goods in the COG's account, just like it 
> was sold.  This is the main bit I am unsure of.
>
> Any other suggestions, or am I looking at this completely wrong? 

Right it is a general accounting question, not a gnucash question. I 
suggest a standard 101 text for Australia to find out what expense 
account to charge. NOT likely going to be "cost of goods sold". Might be 
something like "inventory obsolete, lost, stolen, damaged, etc." << you 
need to consider far more possibilities than becoming valueless because 
obsolete >>

Michael FD Novack

PS -- I am not "qualified" to give accounting advice here let alone for 
Australia