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Troubleshooting: Can I use stock write to write off the damaged goods for FIFO Costing Method?

Question: Can I use stock write off to write off the damaged goods with FIFO Costing Method?


Answer:

Stock write-off means to reduce the quantity of stock that were damaged, expired, obsolete ....

The cost of the items that are written off will be shared by other stock (remaining stock) .... and thus, Stock Write Off is only used for stock items that are using costing method of Weighted Average. It is not suitable for items with other costing methods such as Fixed Cost, Most Recent Cost, LIFO, FIFO....


Example:

Stock Card, Balance Qty 6, Average Cost RM 50, Total Cost RM 300

Stock Write Off 1 Qty,

New Stock Card, Balance Qty 5, Average Cost RM 60, Total Cost RM 300


Solution:

To adjust FIFO items, you may use Stock Adjustment to adjust.


By: Lay Swan 170915, KM170920, P170920


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