Expired/damaged inventory

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1359 Points Posted on 21 June 2023
what is the accounting treatment of expired/damaged inventory?
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On 21 June 2023 at 02:28 Report
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This discussion clarifies the accounting treatment for expired and damaged inventory. Expired stock should be written off as an expense, debiting a P&L account and crediting the stock account. For damaged inventory, it should be recorded at its net realisable value, with any loss debited and the inventory account credited.

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GST Consultant
15986 Points Posted on 21 June 2023
Stock written off A/C Dr
To Stock A/c
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On 21 June 2023 at 04:15
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Finance
4592 Points Posted on 21 June 2023

I think last time I gave you that treatment. It's taken to costing profit and loss account. 

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On 21 June 2023 at 04:29
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100 Points Posted on 24 June 2023

Expired Inventory: Write off as an expense, debiting the expense account and crediting the inventory account.

Damaged Inventory: Record at net realizable value, reduce cost, and separate recovery/salvage value. Debit loss account, credit inventory account.

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On 24 June 2023 at 14:29

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