- Navigate to Setup > Accounting > Chart of Accounts > Create a GL account of type Expense to post the value of obsolete inventory on the income statement.
- Navigate to Transactions > Inventory > Adjust Inventory.
- Set all necessary fields and on the Adjustment Account field, select the Account created in step 1. to write off inventory created above.
- Navigate to the Adjustments tab.
- On the Item column field, select item.
- Enter a negative quantity in the Adjust Qty by column field(quantity to write off). The system would assign the Est. Unit Cost based on the costing method of the item.
- After setting all other necessary fields if any, click Add.
- Click Save
As a result of the Inventory adjustment, the quantity being written off is deducted from stock and the expense amount posts to the general ledger using the adjustment account you selected.