Inventory Write-off

In cases like converting an item from stock/inventory to become an asset of the company, it is necessary to record the said event. In this article, you will be guided on how to record the write-off of the applicable stock item/s in Dear systems. Not only that, but you also need to record the same event in your accounting system like Xero.

DEAR

Go to Production/Inventory → New → Inventory Write Off.
Identify the Location where the stock will be written off.
Select the relevant Expense account.
To add a product or service to be written off, click + and then select the relevant product or service from your inventory.
Identify the Quantity which will be written off. The cost will be automatically calculated using your chosen Costing Methods and previous transactions.

6. Once done, click the "Complete" button. This will write-off the cost of the inventory to the selected expense account.

XERO

After recording the write-off in Dear, you will need to also record the write-off of the said stock in Xero.

1. Go to Accounting → Manual Journal.
2. Click +New Journal.
3. Fill out the Narration field and choose the applicable Date.
4. Choose the corresponding accounts to record the acquisition of the new asset. Debit is asset account, Credit the inventory account for the same amount.

5.Once done, click the "Post" button. This will record the written-off stock and new asset in Xero.

Note: the above images and figures are for example purposes only.