Writing off Slow Moving Inventory

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n (Querist)
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04 April 2008 Please tell us what we need to take care while writing off slow moving inventory.

R.V.RAO

R.V.RAO (Expert)
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05 April 2008 THE FACT OF SLOW MOVING INVENTORY NEEDS TO BE FACTUAL AND SUBSTANTIATED BY RECORDS AS EVIDENCE, BUT NOT AN ASSUMPTION.
FOR THAT REASON THE BIN CARDS AND STORES LEDGER SHALL SHOW ENTRIES FROM WHICH DATE THE STOCK ITEM IS LYING IN INVENTORY AND WHEN WAS THE LAST ISSUE.
THEN AS PER THE PRACTICE IN A PARTICULAR INDUSTRY AND USAGE OR PATTERN OF CONSUMPTON , THE FACT OF SLOW MOVING OR OTHERWISE DEDCIDED.
IF DECIDED BY A COMMITTEE OF MANAGEMENT AND STORES OFFICIALS OR EXPERTS IN THE LINE THAT THE STOCK ITEMS ARE IN FACT SLOW MOVING AND ALSO NOT LIKELY TO BE USED IN VERY NEAR FUTURE AND REPLACEMENTS COSTS CONSIDERED AS AND WHEN REQUIRED FOR FUTURE USE,A DECISION IS TAKEN FOR WRITE OFF BY THE BOARD/COMMITTEE OF BOARD AND A DETAILED STATEMENT WITH REASONS AND RECOMMENDATION FOR WRITE OOFF GOES TO THE BOARD/COMMITTEE OF BOARD, WHO WILL WRITE OFF THE SAME AND ACCOUNTING ENTRIES ARE PASSED ACCORDINGLY.
R.V.RAO