What Happens When I Write Off Products?

I want to writeoff some stock, how does this effect my financials?

Solution

When you write off stock, using Products / Write Off Products  depending on your settings (Admin / Defaults / Manage Product Defaults - Hide Costs on Transfers, Write Offs etc) you may or may not see the retail price of the stock being written off.  The value of stock is not updated until you run Update Stock to GL found under Utilities.

“When using the Products/ Write Off Products or Transfers option the latest cost will be used at all times, even if your product defaults are set to use the average cost rate. This will not make any difference to the stock value because when you re-value stock at the end of the month, that does use the correct cost setting.”

If you wish to see a comprehensive report of what has been written off, run Reports Transactions By Type and select Write Offs, select your ranges and view the report, but again it only shows quantities not values.